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The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alistair Burt)
It is a pleasure, Mr Caton, to serve under your chairmanship. I echo the remarks of the hon. Member for East Dunbartonshire (Jo Swinson) in thanking the right hon. Member for Knowsley (Mr Howarth) for this debate this morning. One of my happiest memories of the right hon. Gentleman is that I took part in his by-election when I was the Conservative candidate’s parliamentary friend. That by-election in his area gave me the chance to meet all the Conservative voters personally on several occasions during the three weeks, so we had a happy time without disturbing the pundits too much with a surprise result. It was the start of a very warm friendship.
Mr George Howarth
All several hundred of them fondly remember the Minister.
Alistair Burt
I am very grateful to them, including the Earl of Derby.
I thank the hon. Member for East Dunbartonshire for her comments, and her engagement with and her usual passionate commitment to human rights. I also thank the Opposition spokesman, the hon. Member for Bristol East (Kerry McCarthy) for her comments. We cover some similar ground, so I will make some general remarks, but I hope to cover most of the points that hon. Members have made. I begin with an apology on behalf of the Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Taunton Deane (Mr Browne) who is not here because he is representing the Foreign Secretary at the Anzac day service at Westminster Abbey. The House will understand why he is not with us, and I will discuss the debate with him to ensure that he is fully aware of the matters raised.
The right hon. Member for Knowsley is chair of the all-party group on Vietnam. He has a close interest in our relations with Vietnam, and his comments reflected that. I thank him for his courtesy in providing me with a copy of his speech, which helped in preparing my response. The debate has raised several topics that are familiar to those who follow issues in Vietnam and comes at a significant time. Vietnam and, indeed, the wider south-east Asian region are becoming increasingly important to the United Kingdom, as evidenced by the policy of the previous Government, and now by that of this Government.
The Prime Minister was in the region at the beginning of April and, as we speak, the Foreign Secretary is, as has been said, in Vietnam as part of a trip that will also take in Singapore and Brunei for the EU-ASEAN Foreign Ministers’ meeting. That visit is the first by a Foreign Secretary in 17 years. Included in his programme are talks with his Vietnamese counterpart, Mr Pham Binh Minh, and the Minister of Public Security, Mr Tran Dai Quang, with the aim of progressing UK-Vietnam relations. The trip also includes meetings with representatives from the international business and development communities, and I am sure that my right hon. Friend will be pleased to catch up with hon. Members on his return.
Vietnam is a dynamic country with a booming economy. It has been recognised by the National Security Council as a tier 3 emerging power, and is the world’s second largest exporter of rice and coffee. It is set to continue on that growth path, with the World Bank predicting 6% average growth in gross domestic product over the next two years. It has a population of more than 90 million, with a median age below 30 and a 90% literacy rate. With that projected economic growth and those demographics, the opportunities for the United Kingdom will continue to grow in conjunction with growth in Vietnam. We have seen a similar pattern in other countries in the Asia Pacific region and recognise that the world’s economic and political centre of gravity has shifted south and east. We have responded by implementing what we call the network shift, with a significant increase in resources throughout our missions in the region, including additional staff for our missions in both Hanoi and Ho Chi Minh City. That will enable us to strengthen our relations with Vietnam to ensure that there is mutual benefit.
I am sure hon. Members are aware that the UK-Vietnam bilateral relationship is already deep and strong. As part of the National Security Council’s emerging powers initiative, Vietnam is among the six ASEAN countries prioritised as an emerging power. That initiative has enabled us to transform our relationship with Vietnam, using the foundation of the UK-Vietnam strategic partnership, which was signed in 2010. The partnership covers all areas of the bilateral relationship: political and diplomatic co-operation, global and regional issues, education, trade and investment, security and defence, socio-economic development, and people-to-people links.
A key area of opportunity is co-operation on education. There are already more than 7,000 Vietnamese students in the UK, and we are proud that young people in that ambitious country see the standards and opportunities of a British education as key to their success. The right hon. Gentleman referred specifically to education. The British Council there is supporting vocational education, skills training and higher education. UK universities and colleges, as well as the Association of Chartered Certified Accountants, are running joint programmes with Vietnamese universities. We are working to establish an international-standard state university in Da Nang. A number of UK private sector players, including British University Vietnam, have set up in Hanoi and Ho Chi Minh City.
The English language is at the heart of our education offer. Seven thousand children, teens and adults study English at the British Council’s Hanoi and Ho Chi Minh City teaching centres every year. The British Council also trains 500 Government officials. It has set up a free website to offer support for English lessons, and ideas and inspiration for educators for more than 5,000 teacher members. Intel has set itself a target of a computer for every Vietnamese household by 2020. Thanks to its work with the British Council and the Vietnamese Ministry of Education and Training, each will come uploaded with fun, English-learning educational resources in line with Vietnam’s English curriculum.
We can do more. The Prime Minister announced during his visit to Indonesia that the UK has set aside new money to stimulate the expansion of educational links and collaborative programmes across the region, including with Vietnam, with increased student and academic flows in both directions. We are calling that the UK-ASEAN knowledge partnership. We will work with Vietnam and our other regional partners to map the areas of mutual interest. For the 10 ASEAN countries, there is seed money of £200,000, and we can begin to create more opportunities, with a value of up to £3 million, for individuals and institutions.
Jo Swinson
I thank the Minister for being typically generous in giving way. I welcome what he said about the UK’s strategy of engaging with emerging powers. On education, will he say what representations he has made to the Home Office to ensure that the visa regime is efficient and does not stop people coming to this country? I know that there have been issues with student visas, and if we are to expand those cultural and educational links, the issuing of visas is important and must run smoothly.
Alistair Burt
I am not as familiar with visa issues affecting Vietnam as I am with those in countries of which I have more intimate knowledge, but I think the problems are common and similar. We are trying to operate a regime that will encourage people to come to the United Kingdom within the limits set by the Home Office on security, numbers, and everything else. The balance is always difficult. I will raise with the Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Taunton Deane the issues relating specifically to Vietnam, and I presume that he has already been in close touch with the Home Office. The balance is difficult. It is not easy anywhere, and I will ensure that the hon. Lady’s concerns are reflected back.
Education and its spin-over into the general partnership with the United Kingdom put us in a good position not only to be a leading partner in educational development but, as a result of English language use, in various commercial opportunities. I will speak about trade and investment before coming to human rights and other issues.
Vietnam’s impressive potential makes it attractive to UK businesses, which are already doing well in Vietnam. The UK is already Vietnam’s biggest foreign investor in financial services. Other sectors where there are opportunities include education, which I touched on a moment ago, real estate and retail. Bilateral trade in goods reached almost £2 billion in 2011, up by 33% on the previous year. UK exports grew by 18%, reaching £325 million. As I am sure hon. Members will recall, the strategic partnership includes a joint commitment to double trade by 2013—the hon. Member for Bristol East made the point about where our balance of trade should be heading—and our UKTI team has trade officers in Hanoi and Ho Chi Minh City to help UK companies looking to establish or expand their presence in Vietnam. However, in a rapidly growing market it is necessary to take a longer perspective, and we are working with the Vietnamese through the Joint Economic and Trade Committee to identify priority areas and boost our trade and investment relationship. Those bilateral talks include issues of market access and other points of concern to UK companies.
We are well placed to share UK expertise in the financial services, and as I have indicated, the UK is already the biggest investor in that sector in Vietnam. The UK has recently signed a memorandum of understanding with the Vietnamese Ministry of Finance under which we will co-operate on a financial framework for public-private partnerships, public debt management and sovereign credit ratings.
UK companies are world leaders in managing large infrastructure projects and that will be an important area for Vietnam in coming years. It is estimated that an investment of around $160 billion will be required over the next decade, and given the scale of that investment, new models of funding for those projects will be required. We have actively shared our experiences of the public-private partnership model with the Vietnamese, and we hope that UK companies will continue to contribute their world-class expertise.
However, despite that background and the UK’s involvement in trade and investment and commercial opportunities, we acknowledge that Vietnam must do more to meet its commitments. Vietnam has reaped the benefits of its accession to the World Trade Organisation in 2007, but its obligations must also be prioritised. We regularly encourage Vietnam to liberalise its markets further, and negotiations on an EU-Vietnam free trade agreement will start soon, which will bring additional benefits to the UK and Vietnam.
Bureaucracy and corruption remain major problems; Vietnam is ranked 116th on Transparency International’s corruption perceptions index—a long way below China and Thailand. The hon. Member for Bristol East raised that issue and asked what more we can do to help, and the UK remains keen to work with Vietnam to address those problems, including through the anti-corruption dialogue. We believe that tackling corruption has become a priority for the Vietnamese Government. They have developed a comprehensive legal framework on anti-corruption measures, and in 2009 they signed the United Nations convention against corruption. Although there has been good progress, the enforcement and impact of the convention remains patchy at best. Therefore, a joint in-country team from the Department for International Development and the Foreign and Commonwealth Office has been formed to lead our anti-corruption work. Such work is given high priority in Vietnam because it has a direct impact on UK interests and we believe that we can make a difference in a fast-emerging market. Corruption is holding back economic development in too many countries in the region, as well as in other parts of the world. It is an endemic and cultural problem, and needs to be tackled. I am confident, however, that our efforts will assist Vietnam in its attempts to deal with that problem.
Before looking at human rights, I would like to mention one or two regional issues and respond to the right hon. Gentleman’s comments about the South China sea. As Vietnam’s economic power grows, so does its political power. Through our bilateral relationship we are encouraging Vietnam to play an active and responsible role on the global stage, and to use its influence in the region and through ASEAN on issues of importance such as Burma, counter-proliferation and climate change.
As the House will be aware, the Government are concerned about tensions in the South China sea, which is a vital global trade artery. The UK has an interest in maintaining freedom of navigation in the region, and we hope that all parties can resolve disputes peacefully and in line with international law. The UK continues to call for all parties to show restraint and abide by international norms for the safe conduct of vessels at sea. We hope that the Vietnamese can build on recent discussions with all relevant parties and reach an agreement.
We recognise, however, that the dispute in the South China sea is long-standing and complex. It centres on a maze of overlapping territorial claims and the associated right to exploit maritime resources, by China, Vietnam, the Philippines, Malaysia, Taiwan and Brunei. Oil and gas reserves in the sea are significant. The South China sea is a vital global trade artery and some 50% of world trade passes through it.
As the right hon. Gentleman made clear, China, Vietnam and the Philippines have been vigorous in stating their claims. Earlier this month, Philippine and Chinese naval vessels were involved in a tense stand-off over 12 Chinese fishing vessels that were anchored in disputed waters off the north-west coast of the Philippines. Although such incidents continue to be relatively low level, the UK remains concerned about the potential for a minor skirmish to escalate quickly through a miscalculation on either side.
Our role is to encourage all those involved to seek agreement through international negotiation and existing processes. The right hon. Gentleman asked about advice from the United Kingdom, and as an island nation with a long history and involvement in such matters, our advice on maritime issues and territorial disputes will continue to be available to all parties. It is essential to find a peaceful way forward. We understand that ASEAN and China have agreed to develop a code of conduct for the South China sea, and we continue to support that process.
Let me turn to human rights, and the issue of Agent Orange that was mentioned by the right hon. Gentleman. While that remains primarily an issue for the United States and Vietnam, we share a concern about the circumstances of the past. We continue to pay close interest to the issue—I know that during a visit to Vietnam in September last year, members of the all-party group for Vietnam, together with staff from our embassy, visited a number of sites affected by the use of Agent Orange.
Since 2001, the Governments of the US and Vietnam have worked together on the potential environmental and health issues related to Agent Orange and dioxin contamination. The Joint Advisory Committee that advises both the US and Vietnam on activities related to Agent Orange and dioxin contamination, including research and environmental remediation, met for its fourth annual meeting in September 2009. In December 2010, the US and Vietnam signed a memorandum of intent to start work on dioxin clean-up in Da Nang, to be completed in 2013. Although it is primarily a matter between the US and Vietnam, we take a close interest in it and our officials have raised the issue directly with the United States. The right hon. Gentleman can be assured of our sympathy and understanding in relation to those concerns.
Other issues of human rights have been mentioned, including freedom of expression, the blogosphere, freedom of religion and freedom of politics. As the Foreign Secretary has said, human rights are essential to and indivisible from the UK’s foreign policy objectives. As hon. Members will know, the FCO publishes an annual human rights report. The 2010 report, published in April 2011, identified Vietnam as one of 26 countries of concern and highlighted the concern that there were no signs in the short term that the human rights situation there would change. I encourage all colleagues to look at the report for 2011, which is due to be published shortly.
Supporting Vietnam in improving its record on human rights remains a priority for the UK and is very much part of the strategic partnership. We engage Vietnam on human rights bilaterally and through the EU, which holds an annual human rights dialogue with Vietnam. Our overarching objective is to strengthen accountability, which would lead to increased freedom of expression, effective oversight mechanisms and a more robust response to corruption. Our efforts are focused on building engagement with the Government and the Communist party of Vietnam on key areas of concern; supporting the development of the media; enhancing openness, transparency and Government accountability; and tackling corruption.
The hon. Member for East Dunbartonshire referred to freedom of expression, which is our main human rights concern in Vietnam. The Vietnamese authorities maintain a tough stance against any political dissent and a firm grip on print, broadcast and online media across the country. We have concerns about the Vietnamese Government’s treatment of peaceful activists, bloggers and land rights campaigners. National security laws are regularly used against political dissidents and human rights defenders and often lead to lengthy prison sentences. We continue to urge the authorities to adopt a more tolerant approach, stressing the links between Vietnam’s future macro-economic development and its willingness to encourage free speech, open debate, innovation and creativity, which are all important in developing a modern, vibrant and industrialised economy.
The hon. Lady mentioned the death penalty, and I can assure her of the UK’s belief that it is wrong in all circumstances. We will continue to raise the issue with nations that do not hold that view.
The hon. Lady raised the issue of freedom of religion. In recent years, the Vietnamese Government have made progress in implementing their legislative framework to protect freedom of religion and belief. However, there are still isolated reports of harassment of religious groups by local government officials, as well as delays in approving the registration of religious groups. We and our partners in the EU continue to encourage the Vietnamese authorities to ensure that religious freedoms are respected consistently across the country and that central Government policy is understood and implemented appropriately by provincial and local authorities. There have been a number of incidents involving Christian and Buddhist sites as part of land disputes between religious groups and local authorities. In such cases, we have always urged all parties to seek a peaceful resolution, and we have urged the Vietnamese authorities to ensure that property registration procedures are applied consistently across the country.
The hon. Lady mentioned migration and trafficking, about which we are very concerned. The Vietnamese are one of the top three nationalities encountered in the UK as potential victims of trafficking. None the less, the scale of the problem is small compared with illegal migration from Vietnam. Many people are complicit in their illegal entry, but once they are in the UK, organised crime groups target those who are vulnerable and traffic them internally within the country. Sadly, Vietnamese adults are almost as likely to be trafficked for sexual exploitation as they are for labour exploitation. The key to tackling trafficking is to decrease the smuggling of Vietnamese nationals to the UK.
We are also concerned about Vietnamese minors. Between April 2009 and February 2011, 75 out of 96 victims were identified as minors. The majority arrive in the UK as clandestine entrants and are then targeted for labour exploitation, especially cannabis cultivation.
To reduce such threats, we have developed an excellent relationship with the Vietnamese Ministry of Public Security on migration issues. That is particularly significant, given that the UK is clearly the demandeur in the relationship. We are increasing work on organised crime through the Serious Organised Crime Agency, which will post a full-time officer to Vietnam in 2013. For the time being, the work is covered by a Bangkok-based officer, who visits Vietnam twice a month. Through the risk and liaison overseas network, the UK Border Agency is increasingly active in Vietnam, and it will become still more active following the agreement of the memorandum of understanding on immigration information exchange.
Colleagues raised a couple of issues about climate change. Across the Government, we will launch a new trilateral relationship with the Government of Vietnam and the World Bank, and we have been working closely with Vietnam on that. As part of the strategic partnership, the Department for International Development will fund a £3 million project covering key gaps in capacity in five Vietnamese partner Ministries, and that will include adaptation and low-carbon growth analysis.
On adaptation, DFID is developing a project on coastal adaptation in the Red river delta. We hope that will be funded by the international climate fund, which is designed to address climate change internationally. The hon. Lady was right to recognise the particular geography of Vietnam, whose river deltas put it at maximum threat from climate change. That is a further reason why we should act bilaterally with Vietnam, as well as acting on our international obligations.
The right hon. Member for Knowsley mentioned development and poverty, and I am keen to respond. On development, we recognise that economic and commercial growth and opportunities in Vietnam are perhaps the biggest drivers in raising living standards and dealing with poverty. Vietnam has made considerable progress against key development indicators and is seen as something of a success story in reducing poverty. In 2011, it ranked 128th out of 187 countries on the human development index, which is well above what could be expected, given the country’s current national income. However, challenges still remain. Some 12 million people still live in poverty, and the poverty rate among ethnic minorities is particularly high, at 52%.
Since 2006, we have granted Vietnam more than £25 million in debt relief through our DFID office in-country. Based on a 10-year development partnership agreement, the UK has provided more than £448 million in grand-aid to Vietnam. When the development partnership agreement concludes in 2016, DFID will graduate from its programme in Vietnam. As part of that transition plan, DFID will focus on ensuring that interventions are sustainable beyond the period of its presence. Long-term activities on issues such as governance, climate change, and trade and investment are increasingly taken forward as part of the strategic partnership. We are also working on that with multilateral organisations.
The hon. Member for Bristol East mentioned labour conditions and wages. As part of Vietnam’s work with the UK Government, we are discussing capacity building and sharing our experience on labour laws, union participation and economic development in conversations with partners in Vietnam.
Kerry McCarthy
Will UK trade unions be involved in that, perhaps under the umbrella of the TUC? Will they work with labour organisations in Vietnam on these issues?
Alistair Burt
If I may, I will raise that with the Minister of State, Foreign and Commonwealth Office, my hon. Friend the Member for Taunton Deane. However, I saw Brendan Barber quite recently regarding trade union activity in countries in transition in north Africa, and we have a good relationship with the TUC in taking forward work on trade unions in places where that may have been difficult historically. I am sure the same partnership opportunities will exist in Vietnam.
I hope that covers the issues colleagues have raised. If anything has been left untouched, I will, of course, ensure that it is dealt with by letter. I hope the time we have spent on the debate and the points that have been raised confirm that my right hon. Friend the Foreign Secretary’s visit to Vietnam today is timely and builds on the good relationship between the UK and Vietnam, which has been built up over a number of years. The strategic partnership between us, as well as our common concern to use the opportunities provided by trade and investment and to recognise Vietnam’s growing political power and responsibilities in the region, are all good reasons why my right hon. Friend should be there today building our relationship and looking to the future.
I also hope that what I have said about the UK’s commitments and engagement—whether on commerce, poverty or human rights—shows that we have the right balance in our relationship. We want to encourage development right across the board in Vietnam, while not holding back on addressing issues that may be detrimental to its development, as well as those issues that any country, on an international basis, will want to put right over a period of time. In the UK, Vietnam has a good partner on those issues. We will offer advice and support as Vietnam continues its progress through the century.