According to information from the Ministry of Finance, two-way trade turnover between Vietnam - Australia has reached nearly US$5 billion. The two countries have become important economic and trade partners. This relationship is growing strong and will be further enhanced in the future.
Australia has been supporting Vietnam to become a stronger partner in the region. The relations between the two countries have developed comprehensively in all areas namely economy, culture, education, science and technology. Two-way trade turnover between Vietnam and Australia has steadily increased each year: in 2010, trade turnover between the two sides reached US$ 4.14 billion, of which Vietnam exported to Australia US$2.70 billion and imports US$1.44 billion; in 2011, trade turnover reached US$4.6 billion, up 12 percent compared to 2010. Total two-way trade turnover of the first 10 months in 2012 between Vietnam and Australia was at about US$4 billion, of which export was US$2.5 billion and import US$1.5 billion, by the end of 2012 the trade turnover was nearly US$5 billion. Australia is also the largest trading partner and the fifth largest export market of Vietnam. Vietnam has continuously had trade surplus to this market.
Vietnam's main exports to Australia include crude oil, seafood, nuts, furniture, handicrafts, coffee, garments, footwear, rubber and rice. In particular, crude oil is the largest forex earner to this market, with a value of over US$1.4 billion, accounting for 50 percent of total export value in the first 11 months of 2012. In November 2012, Vietnam's seafood export turnover to Australia reached US$16.10 million, up 4.4 percent compared to the same period last year; bringing total seafood exports 11 months to US$172.94 million. So far, Australian consumers are already familiar with many items imported from Vietnam. As Australia continues the implement open market and trade liberalization commitments, in the future, Vietnam’s exporters will have more opportunities to increase exports to this market.
On the import side, Vietnam imports from Australia items such as cereals, pharmaceuticals, food processing machines, electrical equipment, metal, steel, food and chemicals.
In terms of bilateral investment, according to the Ministry of Planning and Investment, Australia ranks 18th out of 77 countries and territories with direct investment into Vietnam and is one of the countries investing effectively in Vietnam. As of October 2012, Australia invested in 123 projects in Vietnam with a total capital of US$700 million (disbursed capital of US$347.6 million), mainly in the areas of processing, business assets and services counseling, education and training, located in some large cities such as Ho Chi Minh City, Hanoi and Binh Duong, mainly in the form of 100 percent foreign owned and joint ventures. Australia has particular strength in the fields of agriculture and food processing. In recent years, the number of Australian companies investing in food and beverage sector, especially in brewing, food processing, dairy and beverage packaging, has increased significantly.
Besides, official development assistance (ODA) to Vietnam is on a large scale. In fiscal year 2012-2013 alone, despite the global economic difficulties, the Australian Government has committed aid for Vietnam of US$152.1 million.
Australia's development assistance to Vietnam in the areas of agriculture and rural development, environmental protection, climate change, prevention and mitigation of natural disasters, epidemics and dialogue on human rights have been significantly enhanced.
Regarding Vietnam's investment in Australia, as of October 2012, Vietnam has 15 projects in Australia with a total investment capital of US$140.09 million. Major investment projects are in the fields of agriculture and forestry, real estate and construction.
Regarding advantages in developing cooperation between Vietnam and Australia, experts say that as Vietnam and Australia both located in the potential Asia-Pacific region, they are keen to enhance the expansion of friendship and long-term cooperation in various fields. Not only in the bilateral framework, cooperation between the two countries has developed strongly also in the multilateral framework.
However, according to trade promotion experts to Australia, besides the advantages, there are many things that Vietnamese exporters should grasp to act more effectively in the Australian market. The two countries’ businesses also lack information about markets and face difficulty in market research and trade promotion activities. Meanwhile, competition with other partners such as China and some ASEAN countries increases because of the major advantage of other countries in textile goods, particularly China and India. In addition, food products, fruits and agricultural products imported into Australia must pass strict inspection. This is also a challenge for Vietnamese fruit and vegetable export enterprises.
To further boost trade relations, the two sides will cooperate to promote trade, investment, and create favorable conditions for enterprises of the two countries, especially in such areas as energy, mining, processing industry and service. The two sides also agreed to further expand cooperation in the fields of health, culture, labor, human resource training. Australia promised to consider the positive proposals of Vietnam on the development of tourism cooperation.
In particular, 2013 will mark the 40th anniversary of establishing diplomatic relations between Vietnam and Australia (1973-2013); the two sides will jointly organize activities to commemorate this special event.
Thu Ha
Vietnamese
