Prime Minister Anthony Albanese declared that he wants to expand economic ties with Vietnam as he prepared for talks aimed at deepening Australia’s relationship with the South-East Asian nation. Mr Albanese arrived in Hanoi on the weekend and met with Vietnamese Prime Minister Pham Minh Chinh yesterday, along with Communist Party general secretary, the president and the chairman of the national assembly.
Officials wanted to use the visit to highlight Australia’s growing trade ties with Vietnam. Australian exports to Vietnam have jumped recently, but trade between the two countries is still well below its potential level. The federal government is keen to court emerging economies like Vietnam, as it tries to reduce its economic reliance on China.
Mr Albanese struck a bullish tone at a business reception on Saturday night, calling Vietnam an “economic powerhouse” and saying he wanted to double two-way investment between the countries. “Our two-way trade reached more than $22 billion last financial year — up 40 per cent from the year before,” the PM said. “But I know there’s room to do more. We see trade diversification as a mutually important – and beneficial – priority.”
Vietnam is emerging as an important hi-tech manufacturing hub, following the supply chain disruptions that have occurred in China over the past couple of years. Apple, as one example, decided to shift some iPad production to Vietnam after it was exposed to Beijing’s Covid lockdowns. Two of its tech rivals, Samsung and LG, got in before Apple and already have a large manufacturing presence in Vietnam, and continue to their investment in the country.
Vietnam and Australia trade have been on an upward trajectory with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) further adding and cementing bilateral trade between both countries. With Australia-China trade relations hit by political tensions, Vietnam has become increasingly favorable for Australian investors.
In addition to the CPTPP, Vietnam and Australia are both members of at least two other free trade agreements, namely the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) and the Regional Economic Comprehensive Economic Partnership (RCEP), which Vietnam joined at the same time as Australia, on 01 January last year.
A media release issued today by the Prime Minister’s office contained the following lines:
“Bilateral talks focussed on ways to grow trade and investment, building on the impressive expansion of two-way trade which rose by almost 40 per cent last financial year. To reflect the vital importance of this trading relationship with a vibrant and growing economic partner, the Prime Ministers announced the inaugural Australia-Vietnam Trade Ministers’ Dialogue.”
“Looking to the future, Leaders also welcomed growth in air links between the two countries with the increase in direct flights and the addition of new direct flights from Vietnam to Brisbane, which will boost tourism and trade ties.”
“The Prime Minister oversaw additional announcements on increased cooperation on digital economy, science commercialisation and innovation policy development, as well as the exchanging of financial intelligence to support cooperation on money laundering and terrorism financing.”
“Bilateral talks emphasised the importance of a stable, prosperous and resilient region, and the crucial role of ASEAN as Southeast Asia’s key forum for cooperation.”
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