Bringing Vietnam-Australia relations to a new page of development

At the invitation of Australian Prime Minister Anthony Albanese, Prime Minister Pham Minh Chinh and his wife will attend the Special Summit commemorating the 50th anniversary of ASEAN-Australia relations and pay an official visit to Australia starting on March 5th. The visit to Australia by Prime Minister Pham Minh Chinh and his wife will contribute to strengthening friendship, promoting multifaceted cooperation between the two countries, and ushering in a new phase of development in bilateral relations.

The Strategic Partnership is developing strongly.

Since establishing diplomatic relations in 1973, Australia and Vietnam have forged a strong and enduring relationship with diverse and growing interests. Bilateral relations continue to grow stronger, and Vietnam is now considered one of Australia's most important bilateral partners. The two countries established a Comprehensive Partnership in 2009, which was later upgraded to an Enhanced Comprehensive Partnership in 2015. Building on these achievements and aiming to further deepen and strengthen cooperation, the two sides upgraded their relationship to a Strategic Partnership in March 2018, continuing to strive for new heights in their bilateral ties.

General Secretary Do Muoi and Australian Prime Minister Paul Keating witnessed the signing of cooperation documents between the two countries during General Secretary Do Muoi's official visit to Australia in 1995. (Photo: Xuan Lam/VNA)

Former Governor-General Peter Cosgove once shared, "Australia is proud to have Vietnam as a friend," while Foreign Minister Penny Wong affirmed, "Australia hopes to be an even better partner for Vietnam." According to the Vietnamese Ambassador to Australia, Nguyen Tat Thanh, it is commendable that during the 1980s, when Vietnam faced many difficulties, Australia proactively developed multifaceted relations with Vietnam. Australia's Official Development Assistance (ODA) was implemented as early as 1973, only temporarily suspended. Australia also participated in supporting Vietnam with several essential infrastructure projects, such as the 500kV North-South power line, the My Thuan and Cao Lan bridges, and a modern telecommunications and banking system. While many Western countries have cut ODA in recent years, Australia has maintained its ODA to Vietnam, increasing it by 18% in the 2022-2023 fiscal year. In recent years, cooperation between the two countries has expanded rapidly. The bilateral relationship spans many fields, from security, defense, trade, and investment to education , tourism, and innovation. This development is thanks to the strong commitments of high-level leaders from both countries, through high-level visits and other exchanges. High-level exchanges and contacts have been consistently maintained, notably recently: Prime Minister Nguyen Xuan Phuc's phone call with Australian Prime Minister Scott Morrison (January 2021); Prime Minister Pham Minh Chinh's phone call with Prime Minister Scott Morrison (May 2021), meeting with Prime Minister Scott Morrison on the sidelines of COP-26 (November 2021); phone call with Prime Minister Anthony Albanese (October 18, 2022), meeting with Prime Minister Anthony Albanese on the sidelines of the 41st ASEAN Summit (in Cambodia, November 2022) and at the G7 Expanded Summit (in Japan, May 2023). National Assembly Chairman Vuong Dinh Hue held online talks with Australian House Speaker Tony Smith (June 2021) and paid an official visit to Australia (November 2022); Vice President Vo Thi Anh Xuan met with Governor-General David Hurley (in the Philippines, August 2022); Foreign Minister Bui Thanh Son paid an official visit to Australia (September 2022); President Nguyen Xuan Phuc met with Australian Prime Minister Anthony Albanese on the sidelines of the APEC Summit (in Thailand, November 2022); President Vo Van Thuong met with Governor-General David Hurley and Prime Minister Anthony Albanese at the inauguration ceremony of King Charles III of the United Kingdom (May 2023)...

General Secretary Nguyen Phu Trong received the Governor-General of Australia, David Hurley, on his state visit to Vietnam on the afternoon of April 4, 2023. (Photo: Tri Dung/VNA)

On the Australian side, there was an official visit to Vietnam by Australian Foreign Minister Marise Payne (November 2021); an official visit by Australian Foreign Minister Penny Wong (June 2022); a State visit by Governor-General David Hurley to Vietnam (April 3-6, 2023); a visit and working trip to Vietnam by Australian Minister for Trade and Tourism Don Farrell, who co-chaired the 3rd Vietnam-Australia Economic Partnership Ministerial Meeting (April 2023); and an official visit by Australian Prime Minister Anthony Albanese to Vietnam on June 3 and 4, 2023... Bilateral cooperation mechanisms between the two countries are implemented flexibly both in person and online. Currently, there are over 20 bilateral cooperation mechanisms that are maintained flexibly, including important mechanisms such as: annual meetings of the two Prime Ministers, the two Foreign Ministers, the two Defence Ministers, and the Economic Partnership Conference and cooperation between localities. To date, the two sides have held the 2nd Annual Meeting of the two Prime Ministers (online, January 2021), the 4th Annual Meeting of the Foreign Ministers (September 2022), the 3rd Ministerial-level Economic Partnership Meeting (April 2023), the Deputy Ministerial-level Security Dialogue (December 2022), the 8th Deputy Foreign Minister-Defense Ministerial-level Strategic Dialogue (May 2023), the 3rd Deputy Defense Minister-level Defence Policy Dialogue (October 2019), the Working Group on ODA (September 2019), the Working Group on Trade (October 2019), and consultation mechanisms at the Department/Director level.

A training course and exchange of military firearms skills between Vietnam and Australia was organized by the General Staff of the Vietnam People's Army and the Australian Embassy in Vietnam in 2020. (Photo: Duong Giang/VNA)

Regarding multilateral cooperation, the two countries cooperate well in regional and international forums such as the United Nations, the Asia -Pacific Economic Cooperation (APEC) Forum, and the Association of Southeast Asian Nations (ASEAN)... Australia supports Vietnam's membership in the United Nations Human Rights Council for the 2023-2025 term, its membership in the Intergovernmental Committee of the Convention on the Protection of Intangible Cultural Heritage of the United Nations Educational, Scientific and Cultural Organization (UNESCO) (July 2022) for the 2022-2026 term, and its close cooperation as co-chairs of the Southeast Asia Programme of the Organization for Economic Cooperation and Development (OECD) for the 2022-2025 period…

Cooperation in economics, trade, and many other fields is becoming increasingly effective.

Assessing the cooperation between Vietnam and Australia, Australian Ambassador to Vietnam Andrew Goledzinowski stated that the Vietnam-Australia relationship has many bright spots, much like looking up at a starry night sky where it's impossible to pinpoint which star stands out. The first highlight, according to Ambassador Goledzinowski, is trade cooperation, as this area has developed rapidly in recent years. This reflects Vietnam's increasing prosperity, but also demonstrates the complementary nature of the two economies. In 2023, according to data from the General Department of Vietnam Customs, two-way trade reached nearly US$14 billion. Vietnam's exports to Australia reached US$5.2 billion, while Vietnam's imports from Australia reached US$8.5 billion. Vietnam's trade deficit with Australia was US$3.3 billion. According to a representative from the Asia-Africa Market Department ( Ministry of Industry and Trade ), in 2023, Australia was Vietnam's 10th largest trading partner (ranking 13th in exports and 9th in imports). Conversely, Vietnam was Australia's 10th largest trading partner (ranking 10th in exports to Australia and 10th in imports from Australia).

Late-season longan from Yen The is being shipped to the Australian market. (Photo: VNA)

In particular, Australia is currently an important supplier of raw materials for several of Vietnam's industrial and energy sectors, such as coal (accounting for 45.77% of total imports of this group from the world ), and ores and minerals (accounting for 44.78%) in 2023. Regarding investment, as of the end of January 2024, Australia was also the 20th largest FDI investor in Vietnam with 630 projects and a total FDI capital of over US$2 billion. Mr. Nguyen Phu Hoa, Head of the Vietnam Trade Office in Australia, noted that bilateral trade between Vietnam and Australia in January 2024 showed very positive recovery and growth. Total merchandise trade between Vietnam and Australia in January 2024 reached US$1.25 billion, an increase of 43.4% compared to the same period in 2023.

Bilateral trade between Vietnam and Australia showed a very positive recovery and growth in January 2024. Total merchandise trade between Vietnam and Australia in January 2024 reached US$1.25 billion, an increase of 43.4% compared to the same period in 2023.

Australia has opened its market to Vietnamese lychees, mangoes, dragon fruit, longan, and frozen shrimp. Meanwhile, Vietnam is pushing for Australia to allow imports of passion fruit, rambutan, star apple, fresh coconut, durian, and whole fresh shrimp. Conversely, Australia is encouraging Vietnam to open its market to imports of venison, kangaroo meat, honey, peaches, and nectarines. The prospects for trade between Vietnam and Australia are immense, as both countries are members of the Comprehensive and Progressive Trans- Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) – a new generation of inclusive and open trade agreements.

Ambassador Nguyen Tat Thanh at the launching ceremony of the program to build the brand of pangasius and basa fish in Australia and market frozen whole passion fruit from Vietnam. (Photo: Dieu Linh/VNA)

Furthermore, Vietnam and Australia have announced and implemented a Strategy to Enhance Economic Linkage, along with a Roadmap to Promote Trade and Investment Relations between the two countries for the period 2021-2025. This strategy emphasizes the importance of adhering to and strengthening the global trading system based on international rules, as a basis for promoting free trade and cooperating to address common challenges. The Strategy to Enhance Economic Linkage aims to double bilateral investment and become one of each other's top 10 trading partners. In terms of investment, as of the end of January 2024, Australia was also the 20th largest FDI investor in Vietnam with 630 projects and a total FDI capital of over US$2 billion. Regarding official development assistance (ODA), Australia consistently provides Vietnam with a stable source of ODA. Over the 50 years since establishing diplomatic relations, Australia has provided Vietnam with a total of AUD 3 billion (approximately VND 47 trillion) in Official Development Assistance (ODA). In the 2022-2023 fiscal year alone, Australia increased its ODA to Vietnam by 18%, the largest increase since 2015. Australian government ODA to Vietnam focuses on innovation; supporting the development and effective utilization of a highly skilled workforce; strengthening the economic empowerment of women, including ethnic minorities; responding to the COVID-19 pandemic; and facilitating and attracting private sector participation in socio-economic development. Furthermore, cooperation in security, defense, education and training, labor, agriculture , and other areas is developing well and has significant potential. Notably, the two countries are interested in promoting several new areas of cooperation such as climate change response, digital transformation, and energy transition. Regarding education, Australia began offering scholarships to Vietnamese students in February 1975. Currently, there are approximately 31,000 Vietnamese students and researchers studying in Australia (90% of whom are self-funded).

Australia began awarding scholarships to Vietnamese students in February 1975. Currently, there are approximately 31,000 Vietnamese students and researchers studying in Australia.

In terms of defense, the two countries cooperate in areas such as peacekeeping , border security, and law enforcement to combat human trafficking, drug smuggling, and various other transnational crimes. In agriculture, both countries have strengths and traditions in developing high-quality agricultural products, but their regions differ in terms of planting seasons and climate. Vietnam, with its tropical climate – hot, humid, and rainy – and fertile land, has a strong advantage in diverse tropical agricultural products; Australia, with its arid climate, largely develops temperate agricultural products, alongside some tropical agricultural areas that are out of season compared to Vietnam. The combination of the two countries creates mutually beneficial products and supply chains serving both markets while also allowing for joint exports to third markets. The two countries signed an agreement on agricultural labor cooperation (March 2022) and continue to coordinate to begin implementation in July 2023. It is projected that an additional 1,000 Vietnamese workers will go to Australia for employment each year. Australia has also actively supported Vietnam in the fight against COVID-19, providing over 26.4 million doses of vaccine, including 12 million doses for adults and over 14.4 million doses for children, becoming Vietnam's second largest vaccine donor after the United States. The Vietnamese community in Australia currently numbers around 350,000 people, playing a crucial and indispensable role in promoting friendly relations and mutual understanding between the people of the two countries.

Building a new chapter for bilateral relations.

Looking back at the outstanding achievements in Vietnam-Australia relations, this will certainly serve as a foundation and framework to guide the long-term vision for bilateral relations in the future. Vietnam and Australia will continuously strive to build a new chapter in bilateral relations, on which the two countries will continue to promote cooperation in economic-trade, security, and other areas in a more substantive and effective manner. Evaluating the half-century of Vietnam-Australia relations, Australian Ambassador to Vietnam Andrew Goledzinowski stated: “There has never been a time in history when the relationship between our two countries has been as strong and thriving as it is today. The bilateral relationship is built on strong mutual trust and practical, effective cooperation in many fields.”

Australian Foreign Minister Penny Wong listens as chef Sam Tran introduces coffee in Hanoi's Old Quarter in August 2023. (Photo: Lam Khanh/VNA)

Professor Emeritus Hal Hill of the Crawford School of Public Policy, Australian National University (ANU), assesses that Australia and Vietnam currently have a very close relationship. There is a large Vietnamese community living, working, and studying in Australia. Trade between the two countries has developed strongly in recent years. According to the Professor, Australia considers Vietnam an economic "star" of the Asian region, and this is extremely important. From being one of the poorest countries in the world in the 1980s, after the Doi Moi (Renovation) period, and especially in this century, Vietnam has risen to become one of the fastest-growing economies in Asia. From a low-income country, Vietnam is now a middle-income economy, attracting many international investors. Professor Hal Hill predicts that in the future, Vietnam will welcome even more investors from around the world. Despite acknowledging that challenges remain, Professor Hal Hill remains optimistic about the future of the Vietnamese economy, emphasizing that, for him, Vietnam is one of the most impressive success stories. Also praising Vietnam's development and the Vietnam-Australia relationship, expert Greg Earl, former member of the Australia-ASEAN Council and former Southeast Asia correspondent for The Australia Financial Review, noted that the Vietnam-Australia relationship is one of the most prominent chapters in Australia's regional foreign policy in recent years. The two countries have found more room for cooperation, both in security and economics, with a much faster pace than many had anticipated. Vietnam has become a stable and reliable diplomatic partner. Furthermore, the Vietnamese community in Australia has played a significant role in fostering cooperation and strengthening ties between the two countries.

A group of students from the University of Adelaide, Australia, visited the Hoa Binh Hydroelectric Power Plant during their study tour in Vietnam (October 2022). (Photo: VNA)

Expert Greg Earl suggests that to maintain and further promote the current good relationship, the two countries should strengthen bilateral cooperation as well as within the framework of ASEAN-Australia relations to improve economic and security ties. They should also promote people-to-people exchanges in education and employment. According to Earl, based on areas of mutual interest, Vietnam and Australia need to build two-way economic linkages, similar to the long-standing ties Australia has with North Asian countries.

The Cao Lanh Bridge was primarily funded by non-refundable aid from the Australian Government. (Photo: Nguyen Van Tri/VNA)

(Vietnam+)

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