Vietnam - Australia sharpen focus on economic cooperation

Under the Vietnam - Australia Enhanced Economic Engagement Strategy (EEES), which was announced on November 1 by Prime Minister Pham Minh Chinh and Australian Prime Minister Scott Morrison at the 2021 United Nations Climate Change Conference (COP26), Vietnam and Australia will accelerate trade and investment during 2021-2025 as well as bring their burgeoning commercial ties into sharp focus.

With the EEES, the two countries have committed to an ambitious target of becoming each other’s top 10 trading partners and doubling two-way investment. The strategy will guide economic engagement to enhance opportunities for both countries’ producers, consumers, investors, traders, and entrepreneurs.

The EEES will also help both countries take advantage of emerging market opportunities, including in agriculture, energy, services, and the digital economy, as the two economies recover from the impact of Covid-19. The development of the strategy represents close cooperation and considerable work by both countries, including economic analysis, cross-government consultation, and recommendations put forward by business stakeholders.

Key sectors in which Vietnam and Australia are highlighted and uniquely matched to deepen trade include education, skills, and training; resources and energy; agriculture, forestry and fisheries; manufacturing; tourism; science, technology and innovation; digital economy; and health, logistics, financial, and professional services.

The strategy will help guide the two countries towards an inclusive and sustainable growth path, according to Australian Ambassador to Vietnam H.E. Robyn Mudie. Vietnamese and Australian economies are highly complementary, Australia is a reliable supplier of the services and raw materials that Vietnam’s exporters require, and Australian consumers enjoy Vietnam’s high-quality products in their homes and workplaces. “There is enormous potential to take this relationship even further as we emerge from Covid-19,” Ambassador Mudie said in a media release issued on November 3.

She also emphasized that this strategy is the strongest reflection of the two countries’ confidence in a shared economic future, bringing them closer to becoming each other’s top 10 trade partners and doubling investment. Through this strategy, Vietnam and Australia can recover their economies and prosper together.

Moreover, an Implementation Plan for the strategy has also been agreed upon by both governments, providing a roadmap for practical initiatives to deepen trade and investment links in key sectors, over an initial period of 2021-2025. These initiatives will be funded by the Australian and Vietnamese Governments, along with co-contributions from industry. Early initiatives are already underway, including 28 projects awarded to Australian organizations under the Vietnam - Australia Enhanced Economic Engagement Grant (VAEG) Pilot Program in early 2021.

The strategy also recognizes that business and industry will be critical in taking the economic relationship to the next level. As part of this, both countries have appointed “Business Champions” - industry leaders - to accelerate business engagement, trade, and investment between Vietnam and Australia.