Australia foreign minister tours Vietnam

Updated July 1, 2008 23:00:40

Stephen Smith has told Vietnam that funding for anti-corruption education and renewable energy is being offered. [AFP]

Australia's foreign minister Stephen Smith is in Vietnam for a two day visit aimed at boosting business and strategic ties.

Australia says it will provide up to $A500,000 to help train senior members of the Communist Party and the government to fight corruption.

Corruption is seen as a major threat to Vietnam's future economic growth and sustainable development.

Our South East Asia correspondent Karen Percy reports from Hanoi that Mr Smith landed in the Vietnamese capital this morning, and is holding a series of meetings with senior ministers.

The foreign minister has told Vietnam's investment minister that the funding will be provided for anti-corruption education and investment in renewable energy.

It has been 35 years since Australia and Vietnam established diplomatic ties under the Whitlam government, and now trade between the two countries is worth more than $A6 billion a year.

Australia also runs a number of development programs aimed at reducing poverty.

Australia used to be the top foreign investor in Vietnam, and while it is still in the top 20, Vietnam is seeking greater investment.

Mr Smith will meet Vietnam's prime minister and president on Wednesday.