January 1, 2010 saw the entry in force of ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), which according to H.E Allaster Cox - Australian Ambassador to Vietnam, will support industries both in Vietnam and in Australia by promoting exports and building on the complementarities in both countries’ trade and investment relationship. Vietnam Business Forum has an interview with him on the issue.
Could you please talk about some tariff lines that will be eliminated or reduced for Vietnam’s exports to Australia?
Under AANZFTA, Australia has agreed to systematically reduce tariffs on all tariff lines, such that 100 per cent of tariffs will be eliminated by 2020.
Of particular importance to Vietnam is Australia’s commitment to eliminate tariffs by 2010 on fish and fish products, fresh and dried fruit and nuts, sugar, pulp and paper and wood and wood articles. Furthermore, tariffs on plastics, minerals, textile and textile articles will be mostly free from 2010.
How does the AANZFTA contribute to the cooperation relationship between Vietnam and Australia?
AANZFTA is the largest Free Trade Agreement Australia has ever concluded and the most comprehensive Free Trade Agreement to enter into force for ASEAN. This deal will support industries both in Vietnam and in Australia by promoting exports and building on the existing complementarities in our trade and investment relationship.
AANZFTA also reduces barriers to services trade and provides protections to investors, including through provisions on intellectual property, competition policy and e-commerce. Under the Agreement, Australia will provide up to A$20 million for capacity building and technical assistance to Vietnam and developing ASEAN countries to assist in the implementation of the Agreement.
What do you expect from Vietnam to take full advantage of AANZFTA?
Concluding AANZFTA during a time of global economic crisis has been a clear demonstration of Vietnam’s (and Australia’s) strong commitment to trade liberalisation and economic integration. Vietnam’s success to date has been founded on openness to trade and foreign investment together with a commitment to resist protectionism. We strongly endorse this stand.
As Vietnam moves up the income scale, however, the expectations of businesses, foreign investors and the public will grow. Further ‘second generation’ structural reforms focused on issues like national competition policy, reforming the state enterprise sector, improved public investment in infrastructure, human resource development and more transparent business regulation will be critical to boost Vietnam’s international competitiveness to take full advantage of AANZFTA.
What do you evaluate on the trade exchange between Vietnam and Australia in 2009?
2009 was an important year for Australia-Vietnam relations. Most notably, we agreed to establish a Comprehensive Partnership, recognising the maturity and strength of the overall relationship. This document was signed during a successful visit to Australia by the General Secretary of the Communist Party Nong Duc Manh. In July 2009, Australia’s Minister for Trade, Mr Simon Crean, led a business delegation to Vietnam focussing on opportunities in education and training, infrastructure and environmental management, financial services, energy, oil and gas and agribusiness. Another important milestone was the signing and entry into force of the Australia-New Zealand-ASEAN Free Trade Area.
Australia remained a leading trade partner of Vietnam’s in 2008-09 and Vietnam’s fourth largest export destination behind the US, Japan and China. Total goods trade nevertheless recorded a decline in value to A$5.6 billion from A$6.4 billion in the year to November 2009 consistent with reduced global economic activity and a lower international price for crude oil.
Education cooperation was one of the stand-out successes of the relationship in 2009. Vietnamese enrolments in Australian universities and schools increased to more than 24,000 by November 2009, a 51 per cent increase over the previous year. A further 14,000 students were enrolled at Australian education providers in Vietnam. We are also working with the Government of Vietnam to increase vocational education cooperation.
What do you comment on the economic development of Vietnam in 2009?
Last year was a difficult year for countries across the world as the financial crisis constrained economic activity and the flow of investment capital. Vietnam’s leaders did well to guide the country through difficult times and to sustain relatively strong growth rates through expansive fiscal and monetary policies.
The next five years present Vietnam with the opportunity to grow its economy significantly through greater efficiency and innovation, continued structural reform and strengthening the institutions that will support a more productive economy. Vietnam has now reached a critical point in its reform trajectory. Australia looks forward to partnering with Vietnam to maximise our international trade and investment opportunities in support of these growth and development ambitions.
Reported by Duc Quan
Vietnamese
