Prime Minister Nguyen Tan Dung began a five-day official visit to Japan on October 18 at the invitation of Japanese Prime Minister Shinzo Abe. The visit took place at a time when relations between the two countries have been developing well in various areas. This is Mr Dung’s first overseas trip since he assumed office in July 2006.

Vietnam and Japan established diplomatic ties on September 21, 1973, but they have developed strongly since 1992. The two countries have signed many important agreements such as those on aviation, double tax avoidance, technical cooperation and investment promotion and protection.

Currently, Japan is Vietnam's leading important trade partner. Two-way trade value increased rapidly in 2000-2005 with an annual growth rate of 14.2 percent. In the past nine months of this year, Vietnam-Japan trade stood at US$7.2 billion, a year-on-year increase of 23.5 percent, including US$4.1 billion worth of Vietnamese exports, a 27.2 percent increase. Bilateral trade value is expected to reach US$10 billion this year, an increase of 19.7 percent against last year.

Vietnam mainly exports aquatic products, garments and textiles, crude oil, electric cable, and wood products to Japan and imports mechanical products, steel, electronic products, motorbikes, materials for the textile industry and leather from the Northeast Asian country.

By the end of August 2006, Japan had 677 valid investment projects in Vietnam with a total registered capital of US$6.8 billion, ranking third among the largest foreign investors in the country after Singapore and Taiwan. However, Japan is taking the lead in terms of disbursed capital reaching nearly US$4.7 billion.

Japan has become the largest official development assistance (ODA) donor to Vietnam, pledging a total of US$11 billion in the 1992-2005 period, representing about 30 percent of the total ODA committed by the international community to Vietnam. Of the figure, US$1.4 billion US$ was in non-refundable aid.

Japan's long-term aid programme to Vietnam focuses on human resource development, construction and improvement of transport and power network, development of agriculture and rural infrastructure, education and health care and environmental protection.

Japan is a potential market for Vietnam's labour export. Since 1992 Vietnam has sent about 18,000 trainees to this market.

The two countries give priority to promoting cultural and information exchanges. Japan regularly sends experts to help Vietnam preserve and restore historic relics, while Vietnam sends art troupes to Japan to introduce the Vietnamese land and people.

The two countries also boost their cooperation in education and training at various levels. Currently, Japan is one of the biggest donors to Vietnam's education and training sector.

Regarding tourism, Japan is now ranking among the top five markets of Vietnam's tourism industry, with Japanese tourists making up 10 percent of the total number of foreign visitors to the country. The two countries signed a joint statement on bilateral tourism cooperation with the aim of attracting more Japanese tourists to Vietnam. Last year, Vietnam welcomed 320,000 Japanese visitors, up 20 percent year-on-year.

The two countries also pay attention to cooperation in intellectual property right protection, energy, science and technology, particularly information technology.

VNA/VOVNews