Many Australian Giants Make Strategic Investments in Vietnam

4:23:10 PM | 5/3/2023

Many large Australian businesses active in infrastructure, manufacturing, logistics, and agriculture have confirmed their interest in and commitment to long-term investment in Vietnam.

Australia’s Minister of Trade and Tourism, Senator the Hon Don Farrell delivers opening remarks at the Australia-Vietnam Investment Promotion Forum

Speaking at the Australia-Vietnam Investment Forum held on April 17 in Hanoi, Senator Don Farrell, Minister for Trade and Tourism of Australia, affirmed, “Vietnam is an important partner of Australia in the region. Australian investors always trust when they invest and do business here. Many Australian firms have expressed their interests in and participated in the implementation of the Australia-Vietnam Enhanced Economic Engagement Strategy.”

According to the Australian Trade and Investment Commission (Austrade), investment continues to be a pillar of interest in promoting Vietnam-Australia cooperation, especially when the two countries are celebrating their 50-year diplomatic relations anniversary. Australian companies have invested in Vietnam for decades. Australia is the 20th largest foreign investor in Vietnam with 593 projects and more than US$1.99 billion. Their cooperation in other fields such as education and training, science and technology, innovation, agriculture and rural development, labor, and transportation has also made progress.

Telstra, RMIT, ANZ, Bluescope Steel, Allens and BHP have made their strategic investments that have spurred the economic and infrastructure development of Vietnam. Other notable investment projects from Australia include Austal, VMS and Midway Metals in manufacturing and fabrication; Linfox and Aurecon in logistics and services; Blackstone Minerals and Blueleaf Energy in renewable energy and resources; and CBH and SunRice in the agricultural sector.

Appreciating the investment environment in Vietnam, David John Whitehead, Chairman of Mavin Group, said that Mavin Group started cooperation with Vietnamese businesses in 2004 with the opening of a small animal feed factory in Hung Yen province. To date, Mavin has expanded five large-scale modern feed processors and one food processor and employed 2,600 employees. Its products are present all over the country.

Vietnam has a fast-growing market, a favorable investment environment, with low production costs, a strategic location and a strong digital economy, he said. To have sustainable development and successful business in Vietnam, we should, first of all, have a reliable partner who understands the market, competition, laws and relations with the Government, localities and communities.

Sharing the same viewpoint, Mr. Filip Jankovic, Country Director for Linfox Vietnam, said Linfox has invested a lot in supply chain stages such as modern warehouse chains in Bac Ninh; large-scale distribution centers from Bac Ninh, Quang Binh, Da Nang and Binh Duong to Cu Chi; and cross-border transportation networks to Laos. Present in Vietnam since 2006, Linfox Vietnam aims for professional modern warehousing investment and human investment.

“Vietnam has many opportunities to develop the logistics market because it is a very important gateway market to the Asian region. Therefore, we look forward to seeking more investment opportunities and expanding further in Vietnam in the future,” he said.

Delegates at the Australia-Vietnam Investment Promotion Forum

Appreciating the favorable investment environment in Vietnam with great opportunities for investment and expansion in the future, innovative companies in Australia and Vietnam issued a report with eight recommendations to improve the business environment and strengthen bilateral cooperation between Vietnam and Australia, including focusing on boosting the introduction of trade opportunities in Vietnam to Australian businesses; fostering business knowledge and cooperation prospects with Vietnam; establishing a transparency center to support investment; researching opportunities to optimize visa policies for talents; and broadening skills for local talents.

To further promote Vietnam-Australia investment ties, Ms. Nguyen Thi Bich Ngoc, Deputy Minister of Planning and Investment, suggested businesses join the Vietnam-Australia Business Champions Initiative in the framework of the Australia-Vietnam Enhanced Economic Engagement Strategy (EEES) to boost their role as a bridge to further encourage Vietnamese and Australian companies to explore and promote mutual investment and trade. At the same time, they will continue to research and expand investment in Vietnam’s priority areas that Australia is strong at, including high technology, innovation, clean energy, renewable energy, infrastructure, telecommunication, services - education - tourism, high-tech agriculture, and high-quality human resource training.

“The Ministry of Planning and Investment is committed to further upholding the flame of innovation to improve the business investment environment and create favorable conditions for foreign investors, including Australian investors, to invest and do business effectively in Vietnam,” she noted.

Giang Tu (Vietnam Business Forum)