Since 1975, the European country on the Mediterranean Sea has developed a constitutional monarchy, with a hereditary monarch and a bicameral parliament. After joining the European Union in January 1986, Spain has risen from the status of the least developed country in Europe to become the eight largest economy in the world.

Spain is the world’s largest olive oil producer. Every year, it welcomes more than 50 million visitors. It has built several economic industries of competitive advantage such as mining, machinery manufacturing and shipbuilding. Last year, the country’s GDP reached a four-year record high of US$937 billion, an increase of 3.5 percent against 2004.

Externally, Spain embarks on a policy of tightening relations with other European Union member countries, maintaining relations with Latin America and the US and attaching importance to developing links with countries in the Asia-Pacific region. It also actively engages in resolving regional and international issues through international law in the context of increasing the role of the United Nations and multilateral institutions.

Co-operative relations between Vietnam and Spain have rapidly developed since the mid 1990s. The two sides have frequently conducted high-level visit exchanges to boost bilateral ties, including visits to Spain by Prime Minister Phan Van Khai in October 2001 and by Vice Chairman of the National Assembly Nguyen Van Yeu and Foreign Minister Nguyen Dy Nien in the first years of the 21^st century.  In turn, Queen Sofia de Grecia and the first Deputy Prime Minister Maria Teresa visited Vietnam in 2002 and 2004, respectively.

In 2000, the Spanish Government of Prime Minister Jose-Maria Aznar included Vietnam on the priority list of countries to develop relations with in the Asia-Pacific region. In March 2004, the Government of Prime Minister Jose Luis Rodriguez Zapatero continued to identify Vietnam as a priority partner in Asia.

Spain values Vietnam’s socio-economic achievements, and supports its efforts to strengthen ties with the European Union, join the World Trade Organisation (WTO) and its candidacy as a non-permanent member of the UN Security Council.

Regarding economic relations, two-way trade exchanges have increased by more than 30 percent annually, reaching nearly US$500 million in 2005. Spain is the seventh largest market for Vietnamese products. Vietnam exports coffee, tea, cashew nuts, seafood, footwear, rubber, handicrafts and garments to Spain, while importing mechanical and electrical equipment, chemicals, steel and cloth.

At the second joint co-operation commission held in Hanoi in early February, Spain pledged to prioritise development aid to Vietnam. Spain has developed a development strategy for Vietnam in the 2006-2009 period, and the two countries have also developed a joint tourism co-operation and development strategy for the 2005-2008 period.

However, Spanish investment in Vietnam does not match the two countries’ great potential. During the visit to Vietnam this time, the two sides are scheduled to sign an Investment Promotion and Protection Agreement and several other co-operative agreements.

The two countries’ people have expressed a common belief that the visit to Vietnam by the King and Queen will be a success, contributing to peace, stability, co-operation and development in Asia, Europe and the world at large.