"Australia-Vietnam Trade and Investment Relation Growing Strongly", Says Australian Consul General

 

With total two-way trade for 2005 reaching over AUD 4.5 billion, the trade and investment relationship between Australia and Vietnam is still growing strongly. Due to the fact that our economies are complementary and our two countries enjoy well-established commercial links, there is much potential for our trade flows to continue to increase and diversify. Vietnam’s efforts towards international integration, particularly its efforts to join the WTO, including the conclusion of bilateral WTO accession negotiations between Australia and Vietnam, will create even further scope for deepened trade links between our countries.

 

How many projects have Australian companies invested in Ho Chi Minh City in recent years?There are signs that interest in Vietnam as an investment destination and export market is on the increase among Australian companies. Encouraged by economic, administrative and legal reforms already underway in Vietnam, by progress in Vietnam’s WTO accession negotiations, and by sustained high growth rates and relatively low labour costs, investors are re-considering Vietnam.

 

There were 15 new Australian investment projects registered in Vietnam in 2005, worth USD 5.47 million. In HCMC specifically, there were 7 new Australian-invested projects in 2005, with combined registered capital of USD 1.68 million. Local business highlights in HCMC last year included the opening of RMIT’s new campus in Saigon South and the start of production operations at Australia’s single largest investment in Vietnam, BlueScope Steel’s new metal coating plan in Ba Ria-Vung Tau.

 

And of course, major Australian minerals interests are actively assessing opportunities to develop Vietnam’s considerable bauxite deposits. They have assured us that look forward to working with Vietnamese companies and the Vietnamese Government to build a long-term and successful minerals, technology and marketing partnership that will benefit all sides, but most particularly the local economies where any such projects are developed.

 

The Australian Consulate also has responsibility for promoting and strengthening other aspects of the Australia - Vietnam relationship, including cooperation on education, development activities, and combating transnational crime.  

I am particularly interested in continuing to deepen the educational links that exist between our two countries as I think they go a long way towards promoting a better understanding of our respective cultures, as well as towards building durable people-to-people links. There are growing numbers of Vietnamese students studying in Australia and in Vietnam-based Australian education institutions every year. In 2005 the Consulate granted over 1,100 student visas - a 21 per cent increase on the previous year.

 

An ongoing focus of my work will be supporting the development cooperation between our countries. This year we will continue our activities in the Mekong Delta region on water supply and sanitation, flood control, environmental improvement, community development and support for microfinance.

 

One of my most important tasks here is to build on the existing friendship and understanding between our two countries by introducing different aspects of Australian culture and society to a Vietnamese audience. I am very pleased to say that this past year we have seen large audiences at a number of events which showcased Australian culture through film, photography, music and the visual arts.

 

There are a substantial number of former Australian military service members who have connections with Vietnam and who are increasingly travelling here. Therefore another important aspect of my role is working to promote reconciliation and to establish relationships between veterans of both countries.

 

We are also here to assist the Australian community in HCMC and the southern provinces of Vietnam by providing passport and consular services. With a large, diverse and growing Australian community, including business people, long-term residents, dual nationals, travelers, students and volunteers, to mention just a few, we encourage all Australians to register their presence with the Consulate so that we can reach them in cases of emergency.

 

The year 2005 marked an impressive end to the five-year socio-economic development plan of the government of Vietnam, with GDP growth of 8.4 per cent, the highest in the past 9 years. Increased FDI flows in Vietnam -including a record implemented FDI figure in 2005 - show that international investors are re-discovering Vietnam and many sectors here are benefiting from that increased flow of capital and the skills, technology and experience that come with it.

 

Vietnam should be applauded for its continued efforts towards international integration, which include accelerated economic, administrative and legal reform. In particular, the international community has welcomed the introduction of the new laws on investment and enterprises which come into effect this year, as well as the consultation that took place between business groups, both local and foreign and Vietnamese authorities, to shape the content of these two laws. I know from personal experience that the Australian business community looks forward to further such consultation on the draft regulations guiding these laws, and we thank the Government for its public commitment to such consultation.

 

In 2006, the economy is expected to continue to grow at a similar rate, however, as with any rapid development and growth, problems related to social services and welfare, inflation, industrial relations, urban planning etc. can arise. I have been impressed by the Vietnamese government’s focus on anti-corruption activities, as well as plans to address poverty, labour issues and infrastructure improvement.

 

By the time I finish my posting here in HCMC, I would like to see even stronger trading links between our countries, as well as increased FDI flows from Australia to Vietnam. There are three main ways we at the Consulate will contribute to achieving these goals. First of all, we will be informing Australian companies and investors about the changing investment environment in HCMC and the southern provinces. Secondly, we will continue to hold trade exhibitions / seminars and host trade missions to Vietnam. Finally, this year, one of our most important tasks is to support the APEC meetings taking place in Vietnam, with the overarching goal of boosting commercial and people-to-people links between Australia, Vietnam and all APEC economies. I’d like to take this opportunity to congratulate the HCMC authorities on their recent successful hosting of the APEC Ministers Responsible for Trade (MRT) meeting, it was a great opportunity to showcase HCMC’s strengths to the world.