OREANDA-NEWS.  November 14, 2011. Prime Minister Andrus Ansip and Vietnamese Prime Minister Nguyen Tan Dung have said an agreement on avoidance of double taxation and an economic cooperation agreement must be signed to encourage trade and investments between their countries.

The heads of government also decided that an economic cooperation committee would be formed in order to develop economic relations.

“Due to the great distance, Estonia and Vietnam’s bilateral economic relations are currently low-key, but there is great potential to become more active as both sides have an interest in developing relations,” said Ansip. At the moment, there are no treaties finalized between the countries. An investment protection agreement was signed in autumn 2009 and will likely be ratified at the end of this year. Ansip said the Estonian government will put the double taxation avoidance agreement on its agenda for next year.

Vietnam, which has a population of 90 million, exports primarily to the US and China. Vietnam’s third major trade partner is the European Union. Vietnam hopes to find new markets in Europe for its rapidly growing export. Ansip said at the meeting with his Vietnamese counterpart that Estonia would support giving Vietnam market economy status in the European Union when Vietnam has met the respective conditions.

Interest in cooperation on the part of business communities in both Vietnam and Estonia is growing but there is little mutual awareness of what the business climate is like. Business people from both countries met at today’s Estonian-Vietnamese business seminar. Prime Minister Ansip introduced the members of the business delegation that accompanied him along with the companies they represented. For two years, the Estonian company Ilves-Extra has operated in Vietnam; its CEO Arvo Kivikas was in the prime minister’s business delegation. Ilves-Extra produces part of its output in Vietnam and the company’s head praises the Vietnamese for performing high-quality work and serving as trustworthy partners.

Ansip is scheduled to meet Vietnamese President Truong Tan Sang, the Minister of Industry and Trade Vu Huy Hoang and the Chairman of the National Assembly. The Estonian Prime Minister’s visit to Vietnam is the first high-level bilateral visit in the history of Vietnam and Estonia.

Tomorrow Ansip will be in Singapore, where he will meet counterpart Lee Hsien Loong and Minister of Trade and Industry Teo Ser Luck. On Wednesday, 9 November, Ansip is scheduled to meet Singaporean President Tony Tan. The same day, Ansip will open the Estonian-Singaporean business forum. He will return to Estonia on Thursday morning.