Despite numerous difficulties, Cambodia has consolidated and maintained political and social stability. The success of the election to the Senate on January 22, 2006 was clear evidence of a widely expanded democracy. The strategic alliance between the Cambodian People’s Party (CPP) and the royalist FUNCINPEC party has been gradually consolidated, bringing reconciliation, peace, and development for the country.

Under the reign of King Shihamoni and the leadership of the Senate, the Parliament and the Royal Government, the Cambodian economy has picked up to integrate into the region. Its GDP growth rate reached 6.3 percent last year or 0.3 percent higher than the previous year. Its key sectors such as garments and tourism have shown signs of recovery, while culture, science and technology, education and healthcare have developed strongly. The Government’s efforts to improve its investment environment and expand commercial exchanges have helped Cambodia gradually integrate into the world economy.

Cambodia pursues an external policy of neutralisation, non-alignment, non-invasion and non-intervention in the internal affairs of other countries. Cambodia has joined the Association of Southeast Asian Nations (ASEAN), the World Trade Organisation (WTO) and the Asia-Europe Meeting (ASEM), and has actively engaged in the regional co-operation process, including the Cambodia-Laos-Vietnam Development Triangle, the Greater Mekong Subregion (GMS), the Ayeaywadi-Chao Praya-Mekong Cooperation Strategy (ACMCS), and the West-East Corridor.

Cambodia’s policies aimed at developing the market economy, attracting foreign investment capital and tourists and integrating into the region and the world have paid off and its role and position have been lifted in the region and the world.

As close neighbours, Vietnam and Cambodia share historical and cultural similarities and treasure long-standing friendship. The two peoples have provided great support and assistance to each other in the past struggle for national liberation and the current national construction and development in their respective country.

Cambodia admires Vietnam’s great achievements in the past 20 years of implementing the Doi Moi (Renewal) process under the leadership of the Communist Party of Vietnam. Vietnam persists in its consistent policy of supporting Cambodia in its national development process and constantly strengthening and developing comprehensive co-operation with Cambodia.

During a Cambodia visit by Party General Secretary Nong Duc Manh in March 2005, leaders of the two countries signed a Joint Statement, showing their determination to heighten the traditional friendship and comprehensive co-operation between the two countries in the 21^st century.

To implement the Joint Statement, the two countries later signed a number of co-operative agreements in various areas during a Vietnam visit by Cambodian Prime Minister Hun Sen in October 2005. The two sides expressed their satisfaction at the signing of a supplementary treaty to the 1985 border treaty between Vietnam and Cambodia. Relevant agencies of the two countries are co-operating to complete the border demarcation and marker planting by 2008 with a view to creating a legal framework for the two countries to build a joint borderline of peace and friendship in the interests of the two countries’ people.

Vietnam-Cambodia co-operation has developed well in all areas. Bilateral co-ordination in the framework of regional co-operation and multilateral forums has contributed to consolidating peace, stability and co-operation in the region and the world, and elevating the role and position of the two countries in the international arena.