Keynote speech by President of the Republic of Finland Tarja Halonen at the Finland–Vietnam Business Forum on 22nd February 2008 in Hanoi

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It is a real pleasure to be here in Vietnam again. I am also delighted to have the opportunity to address this distinguished audience.

Finland and Vietnam are old friends. Finland was one of the first western countries to recognize Vietnam and our diplomatic relations were established in January 1973. So, this year, 2008, marks the 35th anniversary of our official relations.

During past years Vietnam has performed outstanding economic growth figures and the government has committed strongly to efforts improving the business environment. I am sure that the business delegation members will further elaborate on how they assess the potential of Vietnam. I dare to say anyway that this development, highlighted by Vietnam’s WTO membership, and your commitment to continue on the same road has made Vietnam to a very attractive trading partner for Finnish companies and an attractive destination for Finnish investments.

There are several areas where we can work together to intensify our cooperation and benefit from each others’ experiences. I will outline some of these in my speech. I would also like to share our views, reflecting on Finnish experiences, on some of the challenges that face us in the globalising economy, when we want to be competitive and at the same time also achieve equitable social development and environmental sustainability.

As a strong proponent of the multilateral system, Finland calls for flexibility and leadership from all players to finalize the WTO trade negotiations. Only a multilateral trade agreement can provide for a universal, rules-based, open and non-discriminatory trading system. We hope the emerging economies of Asia to have an active role in setting a benchmark for others in this respect.

As a free trader, Finland also strongly supports rapid conclusion of far-reaching regional and bilateral trade agreements between parties who are willing to go deeper. As one of the most dynamic economy in the region, we hope Vietnam would be among the first ones to conclude free trade negotiations with the European Union.

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Finland is a small country high up in the very North, which has developed during its history from poverty to modern welfare. Today we find ourselves close to the top in many international rankings - for example in competitiveness, environmental sustainability, technology and innovation as well as in education and good governance. We are also proud that Finland has become known as the world’s least corrupt country, praised for the openness and transparency of its well functioning governance.

We have reached this by combining a well functioning democracy and an open and dynamic market economy. Democracy encourages people to take responsibility for their own life and for the development of the whole society. This increases stability and confidence in the society. I think that this is one key factor in our ability to take advantage of the opportunities offered by globalization.

One other key success factor in Finland’s societal policy has been our focus on education, science and research. These issues have traditionally been widely appreciated in our society and have become ever more important in global competition.

Our education system is based on the principle of providing equal learning opportunities for everyone – boys and girls - through free basic and higher education. The importance of education and of developing a strong skills base through life long learning is essential in adapting to changes and to support future economic growth. Investing in people is truly a worthwhile investment.

Modern infrastructure, macro-economic balance, political stability and well functioning labour relations have played a big role for our competitiveness. Competition and open markets have acted as a catalyst for further innovation and productivity and today many Finnish companies stand as global market leaders in their respective fields. We Finns know that we are a small nation, so we can never compete with quantity, only with quality.

Regional integration within the European Union has also been beneficial to Finland. The EU provides us with an enlarged home market and a further stepping stone to world markets. I often compare the EU to a fleet, where there are small and big ships sailing stormy seas together and provide each other with necessary security and support. Our sincere hope is that all the ships in this EU fleet would be well maintained.

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When discussing global future challenges, it is essential to take into account environmental sustainability. Joint actions in this respect must include promotion of technology transfer and use of efficient and clean technology. Finland has no natural oil, gas or coal reserves and is therefore dependent on imported energy, which has made Finland and Finnish companies very advanced in clean technologies.

Finland will continue the development cooperation with Vietnam in the years to come. Your country is going through a period of profound positive change, and we hope to find new partnerships for our cooperation in order to make it possible to deepen and expand our bilateral ties even further. I’ve been told by my business delegation that they consider the development of Vietnam very positively and view your wonderful country with great expectations. I hope that the Agreement on Promotion and Protection of Investments signed yesterday between our two countries may be a positive sign for the New Year, as it implies broader cooperation and development efforts. As business communities are important driving forces in enhancing the economic cooperation between our countries, it is a pleasure to see both sides showing such interest in promoting this relationship. I hope that this business forum will generate further useful contacts for mutual benefit.

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To conclude, I would like to most warmly thank our hosts for their efforts in developing relations between Finland and Vietnam and contributing to the success of this visit. In a rapidly changing and more and more intertwined global economy it is all the more important to use every opportunity to bring together potential business partners. I wish you a productive and enjoyable day.