AGREED MINUTES OF THE SECOND MEETING OF THE PHILIPPINES – VIETNAM JOINT COMMISSION FOR BILATERAL COOPERATION

CONFIDENTIAL 

1. In accordance with the Memorandum of Understanding on the Establishment of a Joint Commission for Bilateral Cooperation between the Philippines and Vietnam, and the Agreed Minutes of the First Meeting of the Joint Commission, the Second Meeting of the Joint Commission was held in Hanoi from 19 to 20 January 1997.

2. The Vietnamese delegation was led by H.E. Nguyen Manh Cam. Minister of Foreign Affairs of the Socialist Republic of Vietnam. The Philippine delegation was led by H.E. Domingo L. Siazon, Jr., Secretary of Foreign Affairs of the Republic of the Philippines. The lists of delegation from Vietnam and Philippines appear as Annex A and B respectively.

3. The Meeting was held, in plenary and adopted the agenda, which appears as Annex C. Separate meetings were held between senior officials of the two sides in the fields of agriculture, defence and social welfare cooperation.

The texts of the opening address of H.E. Nguyen Manh Cam and H.E. Domingo L. Siazon, Jr. appear as Annex D and E respectively.

I/ BILATERAL ISSUES

A) TRADE AND INVESTMENT AND TOURISM COOPERATION

1. The volume of the two-way trade relations between the Philippines and Vietnam has increased steadily from US$ 75.23 million in 1994; US$ 161.56 million in 1995 and US$ 248.48 million in January to September 1996.

2. The Meeting agreed that the annual review of the existing basic trade cooperation agreement signed m 1978 should be undertaken with a view to concluding a new trade protocol. In this regard, the two sides proposed to promote the following products in each other’s market:

– Philippine exports to Vietnam : toiletries, furniture, interior designs and furnishings, processed foods, computer, packaging materials, construction materials, electricals and household goods/appliances, metal fabrications and fertilizers.

– Vietnamese exports to Vietnam : rice, groundnut, peanut bean, electric circuit pepper, while sand, coal, bicycle tire and tube , cotton and fabric.

3. The Meeting recalled the agreement in principle between the Heads of Stale of the two Countries to establish development cooperation links between Manila and Hanoi; Khanh Hoa Province and Cebu; and Subic Bay Free Port, and Tan Thuan Export Processing Zone and agreed to encourage their respective state planning and development authorities to work out the mechanism of cooperation on an industrial-to-industrial zone schemes as soon as possible. Industrial complementation might be promoted in the areas of construction and property development; food processing; sugar refining and manufacture of Pharmaceuticals, inter alia.

4. The Meeting noted the increasing investments of the Philippines in Vietnam which now total US$ 250 million. The Philippines is ranked 19th in the list of foreign investors in Vietnam and there are prospects for greater Philippine investments in Vietnam. The Meeting welcomed Vietnam to invest in the Philippines in due course.

5. The Philippine side welcomed the amendments of the Vietnamese Foreign Direct Investment Law and believed that the amendments would create even more favourable conditions for the increase of Philippine investment in Vietnam.

6. The Vietnamese side extended an invitation to the Philippine Secretary of Tourism to visit Vietnam in mid – 1997 to discuss future areas of tourism cooperation.

7. The Meeting agreed on the following specific proposals for implementation to promote tourism:

– participation in trade fair

– tourism investment promotion

– exchange of tourism experts

– joint promotion of tourism technology

– exchange of market intelligence

– joint familiarization tours

– exchange of tourism information, technology and travel writers

– joint tourism package.

8. The Vietnamese side would consider the Philippine proposal for pooling arrangements for national Rag carriers.

9. The two sides noted that Vietnam’s entry into ASEAN, particularly AFTA, would facilitate trade between the Philippines and Vietnam as well as between Vietnam and the rest of the region. The Philippine side affirmed its continued support for Vietnam’s entry into APEC and the WTO.

B)AGRICULTURE AND FISHERY COOPERATION

10. The two sides noted the initial implementation of the MOW in Agricultural Cooperation signed in March 1992 particularly in the fields of training of the Vietnamese agricultural and fishery staff by the Philippines.

11. The two sides agreed to continue implementing the programmes of the MOU. The Vietnamese side proposed to the Philippine side to continue its training of Vietnamese agricultural staff and technology transfer in the method of fish, prawn breeding and sea fish management. The Vietnamese side welcomed the Philippine proposal for joint venture projects in which the Philippines has comparative advantage such as in coconut and sugar production and fruit processing.

C) CULTURAL EXCHANGE

12. The two sides noted exchanges at the ministerial level such as the working visit to the Philippines by the Vietnamese Minister of Culture and Information in July 1996. The two sides noted the cultural activities held in the two countries to commemorate the 20th Anniversary of the establishment of their diplomatic relations. The Meeting reaffirmed that these activities promoted a mutual appreciation of their common cultural heritage which in turn served as an enduring basis for their friendship.

13. The Meeting noted specific project proposals such as the exchange of artists and dancers; a simultaneous telecast, and a musical interlude featuring the songs of the Philippine revolution by the Hanoi Symphony Orchestra.

14. The Meeting was gratified to note that former Minister of Culture and Information of Vietnam ‘Iran Hoan had composed two songs on the Philippines, namely “To Rizal” and “Manila Flower” which would be included in the musical interlude to be performed by Filipino and Vietnamese musicians in a concert both in Manila and in Hanoi. The Meeting fell that the compositions contributed to further enhancing the relations between the two countries.

15. In the field of cooperation in education and training, Vietnam welcomed the Philippine proposal to conduct training in the English language at all levels. The terms of reference and implementing guidelines of this proposal shall be agreed by the relevant authorities of the Philippines and Vietnam, as soon as possible.

D) DRAFT AGREEMENT ON AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION

16. The two sides noted the achievements recorded in the first round of the discussion on the draft Agreement on the Avoidance of Double Taxation and Prevention of Fiscal Evasion. The Philippines invited Vietnam lo the second round of negotiations on the draft Agreement in Manila on 10-14 March J997. The Meeting expressed confidence that the draft could be signed and concluded at the Manila meeting.

17. The Philippine side assured the Meeting that it would endeavour to provide assistance in training Vietnamese staffs in the areas of finance, taxation, currency, foreign debt and official development assistance.

E) SECOND CONFERENCE ON JOINT OCEANOGRAPHIC MARINE SCIENTIFIC RESEARCH EXPEDITION TO TOE SOUTH CHINA SEA (JOMSRE-SCS)

18. The Philippine side welcomed the hosting of Vietnam of the Second Technical Experts Meeting of the Joint Oceanographic and Marine Scientific Research in February 1997. The Philippine side requested that the Vietnamese side prepare the draft of the terms of reference for the second JOMSRE-SCS and that a copy be sent to the Philippine side prior to the Second Technical Experts Meeting in Hanoi.

F) MILITARY COOPERATION INCLUDING EXCHANGE OF MILITARY/DEFENSE ATTACHES

19. The two sides noted with satisfaction the results of the visit by Philippine Defense Secretary Renato S. De Villa in April 1996 in reciprocation of the visit of General Doan Khue to the Philippines in 1994 as well as the visit of Lieutenant General Clemente P. Mariano. Commanding General of the Philippine Army, in October 1996, which created greater impetus for the promotion of the relations between the two countries’ defence ministries and armed forces.

20. The Philippines reiterated its offer to train military and defence personnel of Vietnam at the Philippine Military Academy (PMA).

21. The two sides agreed to the early exchange of Military Attaches as well as the strengthening of the exchanges of ministerial and military corps delegations.

22. The two sides welcomed the forthcoming visit of the Naval Commander of the Socialist Republic of Vietnam to the Philippines as an opportunity to exchange views and advance the process of confidence building, thus contributing to peace and stability in the region.

G) RECIPROCAL VISA EXEMPTION FOR HOLDERS OF DIPLOMATIC PASSPORTS

23. The Meeting noted the agreement reached between the Philippines and Vietnam on the conclusion of an MOU on Reciprocal Visa Exemption for Holders of Diplomatic Passports. The MOU was signed by H.E. Nguyen Manh Cam, Minister of Foreign Affairs of Vietnam, and H.E. Domingo L. Siazon, Jr., Secretary of Foreign Affairs of the Philippines, in the course of the Joint Commission Meeting as a concrete first step in institutionalizing people-to-people contacts between the two countries. The text of the MOU is attached as Annex F.

H) ASYLUM- SEEKERS

24. The Meeting expressed its hope that a mutually acceptable arrangement for the voluntary return of the remaining Vietnam asylum seekers in the Philippines could be organized with the support of UNHCR. The two sides agreed to coordinate and cooperate with each other to find a durable solution to the problem of Vietnamese long-stayers who remain in the Philippines under the Orderly Departure Programme.

I) DEVELOPMENT COOPERATION IN THE 21ST CENTURY

25. The Vietnamese side welcomed the Philippine initiative on the conclusion of an agreement for development cooperation towards the 21st century and believed that this agreement would create legal basis and favourable conditions for the multi-sided mutually beneficial cooperation between the two countries in the next century. The draft agreement appears as Annex G. The Meeting agreed that the two sides would consider the draft and try to finalize it for possible conclusion during the Third Meeting of the Joint Commission in Manila in 1998.

II/ OTHER ISSUES

A) ESTABLISHMENT OF A PHILIPPINE HONORARY CONSULATE GENERAL IN HO CHI MINH CITY

26. The Meeting noted the establishment by the Philippines of a Honorary Consulate General in Ho Chi Minh City in the course of the official visit to Vietnam of Secretary of Foreign Affairs Domingo L. Siazon, Jr. on 19-22 January (997. The two sides hoped that the establishment would further promote people-to-people contacts between the two countries, as well as enhance commercial relations such as in the fields of trade, investment and tourism.

B) REGIONAL AND GLOBAL ISSUES

27. The two .sides exchanged views on regional and global issues of mutual concern such as ASEAN, APEC CTBT, structural reforms in the UN, Francophone Summit in Hanoi and the South China Sea. The two sides agreed to continue their consultations not only within the forums of the SCBC but also within existing forums such the ASEAN Foreign Ministers’ Meeting and the UN General Assembly.

III/ CONCLUSION

28. The Meeting agreed that the Third Meeting of the Joint Commission would be held in the Philippines in 1998 at a time convenient for the two sides as mutually agreed upon through diplomatic channels.

29. The Philippine delegation expressed its appreciation to the Government of the Socialist Republic of Vietnam for its warm friendship and hospitality as well as excellent arrangements during the Meeting.