EUROPEAN PARLIAMENT DELEGATION FOR RELATIONS WITH THE COUNTRIES OF SOUTHEAST ASIA AND THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)

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1 EUROPEAN PARLIAMENT DELEGATION FOR RELATIONS WITH THE COUNTRIES OF SOUTHEAST ASIA AND THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) 7th EP/Vietnam Inter-parliamentary Meeting December 2008 Strasbourg REPORT BY THE CHAIRMAN Mr Hartmut NASSAUER Introduction The seventh EP-Vietnam inter-parliamentary meeting took place at an important moment in EU-Vietnam relations. The EU and Vietnam are currently negotiating a Partnership and Cooperation Agreement that will replace the 1996 PCA. In addition, the EU is negotiating a Free Trade Area with the ASEAN countries. The European Parliament's delegation for relations with ASEAN welcomed the opportunity to examine the state of these important developments. It should also be mentioned that the European Parliament adopted a resolution on current EU-Vietnam relations on 22 October 2008, the content of which was also discussed. The Vietnamese delegation was led by the Chairman of the Foreign Affairs Committee on the National Assembly of Vietnam, Mr Nguyen Van Son. The sixth inter-parliamentary meeting took place in Hanoi in May EU-Vietnam trade relations The Vietnamese delegation was received individually by Mr Helmut Markov, Chairman of the International Trade Committee, and Mr Glyn Ford, Rapporteur on the negotiations on the EU-ASEAN free trade area. Vietnam has gone through a remarkable period of economic reform since it opened its doors to the world and liberalised its economy in the mid 1980s. Indeed, Vietnam has today one of the most open economies in Asia and reaches annual growth rates of around 7%. As a result, the country has been able to reduce the level of poverty considerably and achieved thus much progress on the Millennium Development Goals. The European side welcomed the impressive progress achieved by Vietnam in the economic sphere. In particular, Vietnam's accession to the WTO was seen as a reflection of those developments and a good step in the right direction. CR\761187EN.doc 1 PE

2 Obviously, there are some challenges that lie ahead. The rate of inflation (around 20%) has led the Vietnamese Government to adopt a tighter monetary policy and to reduce social spending, which in turn has led to an increase in social tensions. The Vietnamese delegation underlined that macroeconomic stability had been re-gained with the adopted measures, but recognised also that some social unrest had been the result. The Vietnamese delegation also underlined that Vietnam remains a developing country and that the EU should not reduce its development assistance. The Country Strategy Paper earmarks a total allocation of 304 million Euro for projects on poverty alleviation, support for Vietnam's socio-economic development plan, support for economic and governance reform and integration into the global economy. It cannot be ignored, however, that Vietnam may likely be considered a middle-income country as from 2010 onwards. The EU has become Vietnam's second largest trading partner, only after China. The two-way trade amounted to 11 billion EUR in 2007, with a 4.2 billion deficit for the EU and it may reach the mark of 15 billion in The EU has also become the second-largest source of Foreign Direct Investment. Concerning the expiry review on the anti-dumping measures of Vietnam's footwear exports, the Vietnamese delegation asked the European side for their support to make sure that this review takes place as rapidly as possible, given that jobs depended on this. The Chairman of the International Trade Committee, Mr Markov, committed himself to examine this question with the European Commission shortly. EU-Vietnam Partnership and Cooperation Agreement The 1996 PCA provides the legal framework for current relations between Vietnam and the EU. The negotiations on a new, latest-generation PCA were launched recently, but the expectations would appear to diverge considerably. The Vietnamese delegation asked European parliamentarians for their support in making sure that the new PCA provides sufficient market access guarantees. European parliamentarians noted that whereas the development of trade relations so far is very positive, it is a priority of the EU to contribute to the consolidation of democracy and human rights with all its international instruments. EU-ASEAN negotiations on a free trade area Vietnam is currently leading the negotiations on behalf of ASEAN on a free trade area with the EU. Unfortunately, the progress achieved so far has not been very satisfactory. The European Parliament's rapporteur on the negotiations, Mr Ford, noted that this may be due to a number of aspects, such as the heterogeneity of the ASEAN countries (both economically and politically), the divergence of national interests, and the negotiating mechanism, which leads to an approached based on the minimum common denominator. The last round of negotiations took place in Hanoi on October 2008 and the Vietnamese delegation stressed that some progress had been achieved, but recognised CR\761187EN.doc 2 PE

3 that ASEAN countries may have a different level of ambition. The rapporteur concluded this point of the agenda by noting that bilateral negotiations may have to be considered, if not sufficient progress is made with the entire region, although the preferred option is a regional approach. In reply to a question on the situation in Burma, the Vietnamese delegation referred to the traditional non-interference policy into domestic affairs, as practised by all ASEAN members, and took the view that sanctions will not necessarily lead to an improvement of the situation. Constructive engagement would in their view be the wiser option. The human rights situation in Vietnam The European Parliament adopted a resolution on 22 October 2008 on democracy, human rights and the new EU-Vietnam partnership and Cooperation Agreement, in which it expressed concern over a number of human rights violations and shortcomings. The content of this resolution was examined together by both delegations. Chairman Nassauer reminded the Vietnamese delegation that the Partnership and Cooperation Agreement of 1996 already includes in its article 1 a human rights and democracy clause. This meeting provides both sides the possibility to examine how progress can be achieved, as equal partners, and without lecturing. He also expressed his satisfaction at ASEAN's decision to establish a human rights body, as envisaged in the new ASEAN Charter. Mr Nassauer wondered, however, if the notion of individual fundamental rights is understood differently in Europe and in the ASEAN region. The policy of non-interference cannot apply when it comes to violations of human rights. European parliamentarians also drew the attention of the Vietnamese delegation to the various shortcomings referred to in the resolution as regards freedom of religion and freedom of expression. Mr Cappato, Member of the European Parliament's Subcommittee on Human Rights, invited the Vietnamese delegation to comment on Parliament's resolution of 22 October 2008, in particular as regards the specific points of concern expressed therein. Ms Corda, Vice-chairperson of the delegation, insisted on the universal character of human rights and expressed her concern especially as regards the use of the death penalty in Vietnam. She noted that the number of offences where the death penalty is imposed was reduced in the penal code, which is only a first step in the right direction. The Vietnamese delegation claimed that the resolution did not reflect the reality in Vietnam and that it was based on incorrect information. As regards the situation of ethnic minorities for the northern and central highlands, they insisted that there is no discrimination and that the individuals in question had been imprisoned for breaching Vietnamese law, not for political or religious motives. CR\761187EN.doc 3 PE

4 As regards the death penalty, the Vietnamese delegation noted that the medium-term objective would be to abolish it completely. The recent reform of the penal code is a first step in that direction. The Vietnamese delegation also underlined that the current negotiations on the PCA cannot be undermined by any conditions, but invited the European delegation to visit Vietnam, including the central and northern highlands, to examine the situation. They confirmed their view that the well-being of society, economic development and collective rights take precedence of individual human rights. Conclusions The delegation from the National Assembly of Vietnam decided at very short notice to pay a visit to the European Parliament during the particularly busy part-session of December 2008, but this occasion provided the opportunity to discuss a number of important developments. Relations with the European Union are a cornerstone of Vietnam's foreign policy for obvious reasons. Vietnam adopted its own "Masterplan for Relations with the EU" in 2005, which does not see Europe exclusively as an important market for its products, but also as a strategic partner that provides a balance vis à vis relations with China and the US. The European delegation pointed out that a new Parliament will be elected in June 2009 and thus and a new delegation for relations with the ASEAN countries will be constituted. However, the European Parliament will continue its engagement in the region, will support further ASEAN integration, and will continue to follow developments in Vietnam closely. The economic achievements of Vietnam have been impressive, but economic progress needs to go hand in hand with political reform. The National Assembly of Vietnam has been a remarkable and perhaps underestimated player in the modernisation of the country. Political dissent continues to be punished in Vietnam, and calls for a multi-party political system are sentenced heavily. However, within the limitations of a one-party system, the National Assembly would appear to include some reform-minded forces and the increasing parliamentary oversight activities would seem to be an encouraging development. It certainly no longer is the rubber-stamping assembly it used to be a number of years ago. It is therefore hoped that parliamentary exchanges of this type can make a contribution, however modest, towards consolidation of a pluralistic democracy in Vietnam. CR\761187EN.doc 4 PE

5 Annex 1 EUROPEAN PARLIAMENT DELEGATION FOR RELATIONS WITH THE COUNTRIES OF SOUTHEAST ASIA AND THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) 7th EP/Vietnam Inter-parliamentary Meeting December 2008 Strasbourg DRAFT PROGRAMME Wednesday 17 December DEPARTURE FROM Hotel Hilton Avenue Herrenschmidt Strasbourg tel fax TO THE EUROPEAN PARLIAMENT Arrival at the European Parliament Entrance LOW Building Welcome by Mr. Hartmut Nassauer, Chairman of the European Parliament's Delegation for Relations with the Countries of Southeast Asia and ASEAN Venue: Meeting room LOW S4.2 Louise Weiss Building Meeting with Mr. Helmut Markov, Chairman of the European Parliament's Committee on International Trade Venue: Meeting room LOW S4.2 Louise Weiss Building CR\761187EN.doc 5 PE

6 Courtesy Call on the President of the European Parliament, Mr. Hans- Gert Poettering Venue: President's Office - T15003 Louise Weiss Building Meeting with Mr Glyn Ford, Rapporteur in the International Trade Committee on the negotiations on the EU-ASEAN Free Trade Agreement Venue: Meeting room LOW S4.2 Louise Weiss Building DEPARTURE FROM THE EUROPEAN PARLIAMENT TO THE HOTEL DEPARTURE FROM THE HOTEL TO Dinner hosted by Mr. Hartmut Nassauer, Chairman of the European Parliament's Delegation for Relations with the Countries of Southeast Asia and ASEAN Venue: Maison Kammerzell 16, Place de la Cathédrale Strasbourg Tel RETURN TO THE HOTEL Thursday 18 December DEPARTURE FROM HOTEL TO THE EUROPEAN PARLIAMENT Entrance Louise Weiss Working session of the seventh inter-parliamentary meeting between the European Parliament and the National Assembly of Vietnam Venue: Meeting room LOW S Welcome in the plenary of the European Parliament Venue: Official gallery Lunch hosted by Vice-President Ms Mechtild Rothe, on behalf of the President of the European Parliament Venue: Salon d'honneur 7th floor Louise Weiss Building RETURN TO THE HOTEL END OF PROGRAMME CR\761187EN.doc 6 PE

7 Annex 2 EUROPEAN PARLIAMENT DELEGATION FOR RELATIONS WITH THE COUNTRIES OF SOUTHEAST ASIA AND THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) 7th EP/Vietnam Interparliamentary Meeting Strasbourg December 2008 Proposed subjects for the Working Session 18 December :30-11:30 LOW S Political and economic situation in Vietnam 2. Political and economic situation in the European Union 3. Negotiations between ASEAN and the European Union on a Free Trade Agreement 4. Human Rights in the European Union and in Vietnam 5. International Financial Crisis CR\761187EN.doc 7 PE

8 Annex 3 LIST OF DELEGATION OF FOREIGN AFFAIRS COMMITTEE, NATIONAL ASSEMBLY OF VIET NAM 1. Mr. Nguyen Van Son, Chairman of Foreign Affairs Committee, Head of Delegation; 2. Mr. Ngo Anh Dzung, Vice Chairman of Foreign Affairs Committee, Chairman of Viet Nam EU&EP Parliamentary Friendship Group; 3. Ms. Pham Phuong Thao, Member of Foreign Affairs Committee, Chairwoman of the People s Council of Ho Chi Minh city; 4. Prof. Mr. Nguyen Viet Thinh, Member of the Committee on Culture, Education & Youth Affairs; 5. Ms. Le Thi Dung, Deputy from An Giang province; 6. Mr. Nguyen Chung Viet, officer of Foreign Affairs Department, Office of the National Assembly of Viet Nam (ONA). 7. Ms. Tran Thi Thuy Vy, officer of Foreign Affairs Department (ONA). 8. Ms. Nguyen Thanh Tra, Interpreter CR\761187EN.doc 8 PE