This is the first visit to Vietnam by a German President since the two countries established their diplomatic relations on September 23, 1975. Mr Kohler will be accompanied by Government officials and representatives of leading economic group to explore and seek investment and business opportunities.  

The relations between Vietnam and Germany have developed strongly in recent times through the exchange of high-level visits, including visits to Germany in 2003 and 2004 by Prime Minister Phan Van Khai and Party General Secretary Nong Duc Manh and visits to Vietnam in 2003 and 2004 by German Chancellor Gerhard Schroeder.

Germany supports Vietnam’s Doi Moi (Renewal) guidelines and its integration policy and encourages the German business circles to boost cooperation with Vietnam.

To date, Germany has invested US$380 million in 85 projects in Vietnam, ranking fifth among Western European investors in the country. It is also Vietnam’s biggest trade partner in the European Union. Last year’s two-way trade turnover reached more than US$2 billion, including US$1.3 billion from Vietnamese exports.

Vietnam is Germany’s third biggest development aid recipient in Asia. Since 1990, Germany has granted nearly Î640 million in aid to Vietnam. In the 2006-2007 fiscal year, Germany has pledged to grant Î91.5 million to the Southeast Asian country, mainly in the form of non-refundable aid; the remaining amount enjoys low interest rates under conditions set by the Organisation for Economic, Cooperation and Development (OECD).