Located in the middle of Europe, the Czech Republic, which has a total area of 78,000 sq.m. and a population of more than 10 million, is the gateway to Eastern and Western European countries. Its admission to the European Union in 2004 and the Schengen Treaty in late 2007 has helped the country boost economic development and attract foreign investment. Between 1993 and 2006, foreign investors poured EUR55 billion into this EU member country.

The Czech Republic is also one of the most dynamic economies in Europe with a GDP growth rate reaching 5.8 percent last year. Its key industries include machinery manufacturing, mining, metallurgy, automobile manufacturing, petrochemicals, and crystal and beer production. It is famous for applying advanced technology to building small and medium-sized hydro-electric power plants, manufacturing diesel-fuelled locomotives, treating environmental pollution, and producing medical equipment.

After splitting from Czechoslovakia in 1993, the Czech Republic has continued to develop bilateral ties with Vietnam. The two countries have exchanged many high-level delegations, including reciprocal visits by the leaders of the two Governments and two legislative bodies. They released a joint statement during a visit to the EU member country by Prime Minister Nguyen Tan Dung last year.

Economically, besides proceeding with the implementation of cooperation agreements with the former Czechoslovakia, the Czech Republic and Vietnam signed an agreement on economic cooperation and established an Inter-governmental committee for economic and trade cooperation. Late last year the Czech Republic established a trade promotion agency in Ho Chi Minh City.

Two-way trade has increased in recent years, reaching US$200 million in 2007, up 21 percent over 2006. Czech investors have just poured US$35 million into Vietnam, mostly in providing glass and crystal, beer, electrical equipment and building materials.       

During Mr Dung’s visit last year, the business circles of the two countries signed seven contracts worth US$3.5 billion.

The Czech Republic had participated in many international donors conferences for Vietnam and it was the first Eastern European country which provided non-refundable aid for Vietnam worth US$18 million in total.