Signatories to the agreement were Deputy Minister of Planning and Investment Cao Viet Sinh and Swedish ambassador to Vietnam Rolf Bergman.

Under the agreement, Sweden pledged to provide US$11 million in non-refundable aid to Vietnam in the 2009-2011 period. The programme will be implemented at 50 communes in the provinces of Ha Giang in the north and Quang Tri in the central region.

The programme will also help central agencies perfect government policies to reduce poverty in a sustainable fashion in areas inhabited by ethnic minorities.

At the signing ceremony, Mr Sinh affirmed that the first phase of the programme has made a great impact on localities such as Ha Giang, Yen Bai and Quang Tri, contributing to the reduction of poverty, improving people’s living standards and upgrading rural infrastructure.

The signed agreement coincides with the 40^th anniversary of the establishment of diplomatic ties between Vietnam and Sweden, affirming Sweden’s continued support to Vietnam’s socio-economic development and poverty reduction.