Fiala’s trip provides fresh impetus to Vietnam –Czechia relations

This is Fiala’s first Asian trip after he took office in late 2021, and is the first visit to Vietnam made by a Czech Government leader over the past 15 years.

The visit takes place at a time when the friendly and cooperative relations between the two countries are developing positively across various fields. Since the establishment of diplomatic ties in 1950, the former Czechoslovakia and now Czech Republic has prioritised strengthening multifaceted cooperation with Vietnam.

Both sides have maintained regular contacts at all levels, both physically and virtually. Most recently, Chinh met Fiala met on the sidelines of the ASEAN–EU Commemorative Summit in Belgium in December, 2022. Previously, the PM of the two countries had a phone conversation in August 2021.

The two countries have signed 14 cooperation agreements across a number of fields, including employment, economics, trade, and aviation cooperation, along with an agreement relating to the avoidance of double taxation.

They have also closely coordinated at regional and international forums. The Czech Republic supported the Vietnamese UNSC non-permanent member bid for the 2020 - 2021 term. It was also one of the first EU member states to ratify the EU-Vietnam Free Trade Agreement (EVFTA) and the Vietnam-EU Investment Protection Agreement (EVIPA).

The two countries have maintained defence cooperation since they signed a memorandum of understanding in this field in 2012.

Bilateral trade has grown over recent years but is not commensurate with the two countries’ potential. Last year witnessed their two-way trade turnover hit US$848 million, marking an increase of 15% year on year.

Vietnam exports goods such as coffee, pepper, fresh and dried fruits, peanuts, tea, rice, rubber, seafood, footwear, textiles, fine art handicrafts, and computer components to the Czech Republic. It imports electronics, machinery, chemicals, garments, leather, machinery and equipment, milk and dairy products, pharmaceuticals, mechanical engineering products, plastics, along with glass and crystal products from the central European country.

The Vietnam – Czech Republic Inter-Governmental Committee has convened seven meetings since its establishment in 2006. At the seventh session held in Prague in 2022, the Czech side expressed a desire to become either a comprehensive or strategic economic partner of Vietnam.

As of 2022, the Czech Republic had 41 foreign direct investment projects in Vietnam with a total registered capital of US$92 million. Its main investments focus on processing, manufacturing, and mining.

With regard to development cooperation, the Czech Republic was the first country in the former Eastern European bloc to provide official development assistance (ODA) to Vietnam. Since 2013, Vietnam has not been on the Czech Republic’s ODA recipient list thanks to its own economic development achievements. 

Education-training cooperation represents a pillar in bilateral ties. The two sides have encouraged their educational institutions to establish partnerships and expand cooperation.

The Czech Republic has trained thousands of Vietnamese officials, engineers, and workers sent to the central European state under cooperation agreements in the past. It granted scholarships and received Vietnamese students to study in the 1999 to 2014 period.

To deal with labour shortages, the Czech Republic has received skilled guest workers, including those from Vietnam, especially in the healthcare sector. In addition, it has established vocational training institutions to support Vietnamese workers in improving their skills in fields such as mechanical engineering and the automobile industry to supplement its skilled workforce.

There are approximately 100,000 Vietnamese nationals living, working, and studying in the central European nation. Vietnamese expatriates are highly appreciated by the Czech Government due for their practical contributions to local society.

During Fiala’s visit, the two sides are expected to outline orientations for future co-operation in potential areas such as economics, trade, investment, energy, environment, automobile assembly, as well as the effective implementation of the EVFTA.