Think tank points out reasons for Vietnam being desirable partner to Australia
A report recently released by Australia’s Perth USAsia Centre has pointed out some factors making Vietnam an increasingly desirable partner to Australia and other countries.
The report, entitled “Engaging a proactive Vietnam: A pragmatic economic agenda for Australia”, wrote that firstly, Vietnam’s economic size and sophisticated response to COVID-19 makes it one of Southeast Asia’s most dynamic nations. Vietnam has rebounded from the COVID-induced economic slowdown relatively faster than the rest of Southeast Asia.
While Indonesia, Malaysia, the Philippines, Singapore and Thailand are expected to adjust their growth projection to more modest figures compared with before the pandemic, Vietnam’s 2022 GDP growth was at 7%, already exceeding its pre-pandemic growth.
Secondly, Vietnam is reaping the rewards from its efforts to position in the shift of the global supply chain. With stable political environment, well-trained and still relatively cheap labour and favourable foreign investment policies, the country has become a preferred option.
Lastly, Vietnam’s active economic and diplomatic integration policy, including participation in key regional agreements such as the Regional Comprehensive Economic Partnership (RCEP) and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) increases its competitiveness, according to the report.
It noted Vietnam is considered one of the more politically stable countries in Southeast Asia. Alongside maintaining its political stability, safeguarding territorial integrity, and maintaining social order, the country’s main aim is economic growth. For this reason, Vietnam has been not only a participant in multilateral trade efforts but also a leading champion of regional trade integration.
Vietnam’s international role has been increasingly active and consequential within the ASEAN framework and in regional and international forums more broadly. As the 2020 Chair of ASEAN during a pandemic year and a non-permanent UN Security Council member, it played an active role at a time of geopolitical uncertainty, reinforcing its image as a responsible player on the international stage.
Regarding Australia - Vietnam relations, the report said Australia has been a valued partner of Vietnam, particularly due to early joint efforts on several major infrastructure projects, including My Thuan Bridge (completed in 2000) and Cao Lanh Bridge (completed in 2018). Vietnam also values Australia as a regional partner. Most importantly, there has been a strategic recognition by the two countries of mutual importance and elevation of ties to a strategic partnership in 2018.
Australia has an opportunity to demonstrate its value as a bilateral partner by re-prioritising its economic engagement strategy to respond to Vietnam’s contemporary challenges in energy, supply chain disruption and food security and boosting cooperation in digital transformation, education, among others, the report added.
