Crean made the statement at a press briefing in Hanoi on July 24 to announce the results of the 8^th session of the Vietnam-Australia Joint Committee for Economic and Trade Cooperation which was co-hosted by Crean and Vietnamese Minister of Planning and Investment Vo Hong Phuc.

He said that cooperative ties between Australia and Vietnam have developed well in recent times and both countries still have great potential for promoting future cooperation, especially after an upcoming visit to Australia by Party General Secretary Nong Duc Manh, scheduled for this September

In the session, both sides reviewed and proposed measures to increase bilateral cooperation in education-training, finance-banking, infrastructure development, environmental management, energy development and agriculture.

They exchanged views on capacity building to help Vietnam and its businesses fully seize opportunities once it completely opens its markets. Australia’s aid packages to Vietnam have so far targeted capacity building, said the Trade Minister.

They also discussed measures to increase the role of both Vietnam and Australia within regional and global cooperation frameworks, particularly now that Vietnam has joined the World Trade Organisation and, together with other SEAN countries and Australia, signed an agreement to establish the ASEAN-Australia-New Zealand free trade area.

A representative from the Ministry of Planning and Investment said that bilateral economic, trade and investment ties have suffered a significant decline due to the impact of the global economic recession. Total two-way trade in the first quarter of 2009 fell by 45.7 percent to just US$6999 million.

By the end of June, Australia had 214 active projects in Vietnam with a total combined capital of over US$1.23 billion, ranking 19^th among foreign investors in the country. Of the capital amount, US$553 million was disbursed.

The Australian government has maintained an annual increase in non-refundable aid to Vietnam. Its ODA capital to Vietnam in the 2009-2010 fiscal year is expected to amount to AU$105.9 million. All Australian-funded ODA projects have been effectively implemented in Vietnam, meeting the country’s requirements for development.

Recently, the Australian government decided to increase its number of annual scholarships for Vietnamese students to 175.