The plan aims to further develop the relationships in the field of agriculture and rural development based on the Co-operation Agreement signed in Budapest on May 19, 2004. The two sides will work together on cultivation, breeding, forestry, irrigation and aquaculture.

"The co-operation of the two countries on agriculture hasn’t kept pace with the traditional friendship that they have," said Hungary’s Ministry of Agriculture and Rural Development (MARD) State Secretary Fulopp Benedek.

"Being an agricultural country, agriculture contributes to 21 per cent of the GDP, and 75 per cent of the population lives on incomes from this sector. Therefore, agriculture and rural development takes priority in our Government policy," said Viet Nam MARD Vice Minister Bui Ba Bong.

Bong also pointed out that some agricultural products occupy top positions in the world market, like pepper, rice, vegetables, fruit and rubber.

However, he said, many problems remained, including 1.7 million poor households and a large gap between urban and rural life.

It would be necessary to focus on co-operation with international organisations and foreign countries with developed agriculture like Hungary.