Luxembourg's development cooperation in Vietnam

Vietnam and Luxembourg have maintained diplomatic relations since 15 November 1973. Development cooperation between Vietnam and Luxembourg started in 1993 and in 1995 Vietnam became, according to the terminology of the day, a "target country", for Luxembourg development cooperation. Vietnam having been one of the Luxembourg cooperation programme's partner countries, a development cooperation office was opened in Hanoi in 2003 and was officially upgraded to Embassy status in 2006. The 20th anniversary of the development cooperation partnership between our two countries was celebrated in June 2013. Given Vietnam's very positive economic progress the Embassy, which was mainly monitoring cooperation matters, was closed in January 2016.

The first Indicative Cooperation Programme (ICP I 2002–2005) [FR] was allocated a budget of 35 million euro. The second ICP (ICP II 2006-2010) [FR] aligned Luxembourg's interventions with Vietnam's five-year socio-economic development plan, supporting development policies and strategies to achieve the Vietnamese government's MDGs with a budget of 50 million euro. With the overall objective of reducing poverty, the second PIC concentrated on Vietnam's poorest and most remote provinces.

The third ICP (ICP III 2011-2015) [FR], with a 42 million euro budget, was a consolidation programme with the primary objective of diversifying relations between Vietnam and Luxembourg to move beyond the traditional donor-beneficiary relationship. It was about basing the entire future bilateral partnership on an approach characterised by exchanges and mutual interest as of 2016.

The mid-term evaluation of the third ICP, conducted in June 2014, confirmed the significant and visible results achieved by the Luxembourg cooperation programme and that of its Vietnamese partners at provincial level. Under the last PIC, the focus remained on the areas of integrated rural development, health and professional training, with support for nine tourism schools, and training courses in the banking sector in cooperation with the House of Training.

Although the third Indicative Cooperation Programme concluded at the end of 2015, a number of projects are still being implemented and will not be completed before 2018/2019. This development is consistent with the level of development achieved by Vietnam, which has been a medium income country since 2012. Several projects in hand or waiting to start will also pave the way for future relations extending beyond development cooperation (e.g. financial sector, health, sustainable development, professional training).

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