More opportunities to increase Vietnam – Australia economic cooperation

Hoa quoted statistics indicating that the past 11 months saw exports from Vietnam to Australia grow by 24.4% compared to the same period last year, significantly higher than the national average export growth of 14.4%.

Many products showed strong growth, such as machinery and equipment up 108.3%, agricultural products up 27%, seafood up 10%, textiles up 21.5%, wood and wood products up 45%, electrical cables up 58.8%, rice up 18.75%, pepper up 48%, and coffee up 58.4%.

Australia is gradually becoming a key supplier of raw materials for Vietnam’s strong manufacturing industry, with about 80% of imports being raw materials and input supplies. Vietnam exports a wide range of products to Australia, including machinery and equipment, transport vehicles and spare parts, textiles, footwear, agricultural and seafood products, and construction materials.

Hoa told Vietnam News Agency that the Vietnam Trade Office in Australia is not only focused on import-export activities but is also proactively contributing to important national initiatives, such as proposing cooperation in the semiconductor industry, digital economy, establishment of financial centers, mineral supply chains, energy, infrastructure investment, as well as green economy and circular economy cooperation to develop a green material supply chain linking both economies.

Hoa cited a report by the Australian Strategic Policy Institute, saying Australia has strong research and development (R&D) capabilities for semiconductor manufacturing, but it has limited human resources. The Vietnam Trade Office has made proposals in three areas, namely financial investment from Australia into Vietnam’s semiconductor manufacturing; sending human resources from Vietnam to Australia in the near future; and a 2+1 cooperation model where Vietnam and Australia cooperate by leveraging each other’s strengths while integrating US technology.

According to Hoa, Australia is recognized as the fourth largest financial center in the world and the largest in Asia in terms of investment fund assets. It is also one of the most efficient financial centers globally, according to the World Economic Forum. The Trade Office has proactively worked with investment funds and banks to generate interest in the Vietnamese market, in an effort to develop financial centers locally.

In 2024, the Vietnam Trade Office in Australia directly collaborated with the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) and the Investment and Finance Network Australia (IFN-Australia.com), a voluntary network of investment funds in Australia, to support ITPC in organizing two major forums in Sydney and Melbourne to attract investment.

Many investment funds that worked with the Trade Office after these events expressed interest in participating in the formation of financial centers in Vietnam.

Regarding the mining and energy supply chain, Hoa noted that the Vietnam Trade Office has proposed and engaged with stakeholders such as the Minerals Council of Australia, the Australian Trade and Investment Commission (AUSTRADE), and some Australian officials about the possibility of establishing a mineral production chain between the two countries. Vietnam offers a skilled workforce, favourable logistics, a strategic geographical position, abundant new energy resources, and is one of the world's major manufacturing centers, while Australia has advanced technology, financial capabilities, and rich ore reserves.

The two countries could cooperate to develop green technology-based mineral processing industrial parks in Vietnam that would involve transporting ore from Australia to Vietnam for refining and subsequent export, said Hoa.  

The trade official also said Australia is particularly interested in participating in Vietnam’s rare earth sector. He emphasized the need to accelerate cooperation in the rare earth sector to quickly develop refined export products and gain a competitive advantage in the rapidly changing market.

In the energy sector, the Trade Office is encouraging Vietnamese companies to participate in tenders, construction, or invest in mines in Australia, especially liquefied natural gas mines, to ensure energy security. In mining technology, the Trade Office has established relationships with major partners in Australia and has facilitated the sharing of knowledge and experience between the two countries.

Similarly to Vietnam, Australia is recognizing the importance of nuclear power plants. Hoa believed that the two countries could share their visions and financial solutions, integrating third-party technology.

Regarding logistics and infrastructure, the Trade Office is supporting businesses from both countries interested in investing, buying shares, or partnering in port, road, and warehouse infrastructure in both countries.

With regard to the digital economy development, the Trade Office has studied the economic cooperation model between Australia and Singapore, and drew lessons for Vietnam. The office also provided consultation to numerous businesses in both countries, facilitating connections in the information technology sector.

In terms of investment, in addition to the data center project the Trade Office is working on, the blockchain technology introduced by the Vietnamese company Auschain in Australia is being presented to Australia’s agriculture sector for traceability of agricultural and livestock products. The Trade Office is also exploring opportunities to connect with carbon credit trading platforms using blockchain technology and advising Australian fintech companies to enter the Vietnamese market.

The trade councilor said, both Vietnam and Australia are interested in the green economy and circular economy, with many projects currently being connected by the Trade Office. Regarding major cooperation directions, he expressed his belief that promoting cooperation in the green raw material and accessory production chain will have long-term significance.