Vietnam, Australia announce roadmap for enhanced trade, investment ties

Australian Minister for Trade, Tourism and Investment Dan Tehan welcomed the Strategy as the foundation for both countries’ efforts to double investment and become top ten trading partners.

“Australia and Vietnam have complementary economies - we are partners more than competitors. Our supply chains are becoming more closely entwined, meaning together we are exporting to markets around the world,” Dan Tehan said in a media prelease.

According to the minister, the implementation of the Economic Engagement Strategy will unlock mutually beneficial opportunities and boost bilateral trade and investment ties, especially in key areas such as education, resources, agriculture, manufacturing and digital economy.

As the two countries emerge from the pandemic and begin economic recovery, the strategy presents tremendous opportunities for them, he noted.

For his part, Vietnamese Minister of Planning and Investment Nguyen Chi Dung said success in achieving the common objectives of the Strategy will further enhance the economic position of Vietnam and Australia, contributing to the safety, security and shared prosperity of the Asia-Pacific region.

According to official data, over the past 20 years, the Australia-Vietnam trade has grown at an average rate of 8.6% per year, much higher than the average trade growth of 5.8 %/year between Australia and other ASEAN countries. Two-way trade in goods and services was estimated to reach AUD14.6 billion (US$10.4 billion) in 2020.

Meanwhile, Vietnam’s investment in Australia has increased fivefold from AUD155 million (US$110.5 million) in 2008 to AUD785 million (US$559.4 million) in 2020. Vietnamese investment grew the most in the 2010-2014 period, after the ASEAN-Australia-New Zealand Free Trade Agreement took effect.

For its part, as of December 2020, Australian investment in Vietnam hit AUD1.38 billion (US$980 million), ranking 20th among all foreign investors in the country. Australia mainly invests in the manufacturing, processing, food, agriculture, forestry and fishery sectors.