Vietnam and Australia to bolster economic partnership

At the conference, Vietnam and Australia discussed measures to accelerate economic cooperation and reviewed the progress of key initiatives. Both sides assessed the implementation of the Strategy for Enhancing Economic Cooperation and evaluated outcomes from the Working Groups on official development assistance, foreign direct investment (FDI), and Trade. Updates were also shared on the pioneering enterprise initiative, which aims to improve the business environment in both countries.

In addition, both parties explored opportunities for deeper collaboration through multilateral and regional platforms, including ASEAN, APEC, the World Trade Organization, Regional Comprehensive Economic Partnership, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, ASEAN-Australia-New Zealand Free Trade Area, and IPEF. These discussions underscored a shared commitment to fostering growth and integration across diverse economic sectors.

According to an announcement by the Australian Embassy, during the 2023-2024 period, Australia has become one of Vietnam’s key non-refundable aid donors, pledging $63 million in official development assistance. This funding is directed toward economic growth, workforce development, renewable energy, and gender equality. On the FDI front, Australia ranks 21st among foreign investors in Vietnam, with 660 active projects amounting to $2.05 billion, covering sectors such as manufacturing, agriculture, and hospitality.

Bilateral trade remains a key driver of the relationship, with two-way trade reaching $10.8 billion in the first nine months of 2024, a 5.6 per cent increase on-year. Vietnam's exports to Australia surged by 30.3 per cent, totalling $5 billion, led by machinery, footwear, textiles, and seafood. Meanwhile, Vietnam's imports from Australia, including coal, wheat, and raw materials, fell by 9.3 per cent, reducing Vietnam’s trade deficit to $777 million–a notable 69.5 per cent decrease compared to 2023.

In education and training, Vietnam is currently the fifth-largest source of international students in Australia, with 36,221 Vietnamese students studying and researching at Australian institutions as of August 31, according to statistics from the Australian Department of Education.

On October 18, within the framework of the working trip for the Ministerial Conference, Minister Dung held a working session with authorities from Victoria state, focusing on boosting investment and technology ecosystems, particularly in AI and semiconductors. The minister emphasised that the upgrade of Vietnam-Australia relations to a CSP since March 7 aims to strengthen cooperation in innovation, sci-tech, and high-quality human resource development.

“Vietnam aims to promote bilateral investment in potential sectors such as the green economy, digital economy, education, digital transformation, circular economy, high-tech agriculture, renewable energy, and new energy,” said Minister Dung. “The Vietnamese government is committed to creating the most better conditions for businesses and organisations from Victoria to invest and cooperate in Vietnam.”

Meanwhile, Paul Hammer, a senior official from Victoria, praised Vietnam’s socioeconomic progress and highlighted Victoria’s strengths in education and innovation. “Victoria wishes to continue strengthening economic cooperation with Vietnam and is committed to supporting the development of Vietnam’s semiconductor and AI ecosystems,” Hammer said.

On the same day, Minister Dung also met with representatives from the University of Melbourne and Monash University, both of which he praised as world-leading institutions in innovation and high technology. He proposed cooperation in training, incubation, and human resource development for the AI and semiconductor sectors in Vietnam.

The minister also visited the Melbourne Connect Innovation Center at the University of Melbourne, one of Australia’s leading innovation hubs. The visit opened new opportunities for collaboration between Melbourne Connect and Vietnam’s National Innovation Center, with potential cooperation in innovation activities, consulting, training, incubation, and startup exchange programmes.

With the conclusion of the fourth Ministerial Conference, both nations are well-positioned to unlock new opportunities for economic cooperation, underpinned by a shared focus on innovation and sustainability.

Established in 1973 and elevated to a Strategic Partnership in 2018, the relationship between Vietnam and Australia has experienced significant and comprehensive growth across all areas. During Prime Minister Pham Minh Chinh's official visit to Australia from March 7-9, the two nations further upgraded their relations to a Comprehensive Strategic Partnership.

An Australian education delegation is in Vietnam to take part in the Australia Southeast Asia Business Exchange (A-SEABX) Mission from September 25-27 in Hanoi and Haiphong, focusing on the transition to net zero and advancing green economy priorities.

Building on the success of the 2024 Taste of Australia’s Big BBQ, the Australian Embassy in Hanoi is hopeful of strengthening ties with Vietnam to promote Australian produce while fostering goodwill and understanding between the two nations.