Over the past 50 years, the Vietnam-Australia relationship has steadily developed, becoming increasingly profound, sustainable, and pragmatic. This has been achieved through the increasing strategic trust between the two countries, their shared interests in an international order based on international law, and the growing economic relations and strong people-to-people exchanges.

Establishment of a strategic partnership between VietNam and Australia

Since the establishment of diplomatic relations in 1973, VietNam and Australia have built strong and substantive relations on the basis of mutual respect and interest. Converging security and economic interests and deepening people-to-people links anchor our bilateral relationship and cooperation.

In 1991, Australia was one of the countries to remove the trade ban against Vietnam . A number of Australian companies were recognised as pioneers in economic cooperation with Vietnam such as Telstra, BHP and ANZ. The ties developed rapidly and strongly since 1993 when the two countries celebrated their 20th anniversary of diplomatic relations. In May 1993, then Prime Minister Vo Van Kiet paid an official visit to Australia , the first high-level visit in the history of relations between the two sides.

In September 2009, the relationship between Vietnam and Australia was upgraded to a “Comprehensive Partnership”. The partnership was enhanced in 2015, underlines the concerted efforts of the governments and peoples of the two countries to advance bilateral relations. The Vietnam-Australia Action Programme for the 2010-2013 period was also implemented, further strengthening and expanding their political ties, economic and trade cooperation as well as development and technical assistance and cooperation in a series of fields such as defence, education, the environment and people exchange. Later, the two countries released The Viet Nam – Australia Plan of Action 2016-2019.

Recognising that 2018 marks the 45th anniversary of diplomatic relations between Viet Nam and Australia, the two countries jointly decide to elevate the bilateral relationship to the level of a Strategic Partnership, on the occasion of the Official Visit to Australia by H.E. Nguyen Xuan Phuc, Prime Minister of Viet Nam.

In declaring a Strategic Partnership, Viet Nam and Australia pledge our commitment to deepening ties based on respect for the United Nations Charter, international law and each other’s sovereignty, independence, territorial integrity and respective political systems. We will enhance mutual trust and understanding to strengthen the bilateral relationship and contribute to peace, stability and prosperity in the region. In particular, we commit to work intensively to ensure that our region remains peaceful, resilient and shaped by the rules and norms that have prevailed for decades.

On 1 November 2021, Australia and Vietnam launched the Australia-Vietnam Enhanced Economic Engagement Strategy (the Strategy), which supports our two countries’ joint ambition of becoming top ten trading partners and doubling two-way investment.

Key milestones throughout 50 years of diplomatic relations between Vietnam and Australia

Following the Paris Agreement of 1973, Australia was one of the first Western countries to establish diplomatic relations with Vietnam. Over the past 50 years, the Vietnam-Australia relationship has developed steadily and robustly, becoming increasingly profound, sustainable, and pragmatic. This has been achieved through the increasing strategic trust between the two countries, their shared interests in an international order based on international law, and the growing economic relations and strong people-to-people exchanges. The highlights in the diplomatic relations between the two countries have provided momentum towards the goal of upgrading the relationship to a comprehensive strategic partnership.

Political cooperation between the two countries reflects the increasing level of trust under the framework of comprehensive partnership and strategic partnership. The two countries not only respect “the independence, sovereignty and territorial integrity of each other” but also respect “each other’s political system”. Australia commits to strengthen political engagement through regular and high-level exchanges, which will be complemented by existing bilateral meetings, which include the 2+2 Strategic Dialogue, Viet Nam-Australia Human Rights Dialogue, Viet Nam-Australia Consular Consultations and Viet Nam-Australia Agriculture Forum.

Defense and security cooperation is a bright spot, and continues to rise to new heights. The two sides maintain regular exchanges of delegations, cooperate in crime prevention and control, immigration management, illegal migration prevention, information exchange, experience, and English training.

Educational cooperation has developed rapidly and deeply. Australia is one of the most popular foreign education markets for Vietnamese students. Vietnam is currently the fifth largest market in the international education sector in Australia with 31,000 students and researchers studying in Australia and more than 8,000 Vietnamese studying Australian degrees in Vietnam.

Since the establishment of diplomatic relations, Australia has provided 3 billion AUD (about 47,000 billion dong) in ODA to Vietnam. In particular, during his visit to Vietnam, Prime Minister Anthony Albanese announced a support package of 105 million Australian dollars for Vietnam for cooperation on infrastructure, climate change adaptation and energy transition. Australian non-governmental organizations, through their aid projects in the fields of economy, health, community health care, education, etc., have contributed to poverty reduction, socio-economic development, and sustainable development in Vietnam and friendly relations and cooperation between the peoples of the two countries.

Vietnam – Australia trade and investment

Economic and trade cooperation is a priority area in the development of relations between Vietnam and Australia. After establishing a strategic partnership, bilateral trade and investment cooperation has grown rapidly. The two countries set a goal of becoming one of each other’s top 10 trading partners soon and this goal has become a reality despite the impact of the COVID-19 pandemic and the global economic recession. In 2022, the two-way trade turnover reached nearly $15.7 billion, up 26.7% from 2021; In the first quarter of 2023, bilateral trade turnover reached $3.41 billion, making Australia the 7th largest trading partner of Vietnam and Vietnam the 10th largest trading partner of Australia. Of which, Vietnam’s exports to Australia reached $5.6 billion, up 26.2%; imports of goods from Australia reached $10.1 billion, up 27.3%. The main export groups of Vietnam to Australia include:

• Mobile phones and components: $765 million, up 12.5%;
• Machinery, equipment, tools, and other spare parts: $564.6 million, up 62%;
• Computers, electronic products and components: $522 million, up 7.4%;
• Fishery: $365 million, up 37%;
• Textiles and garments: $446 million, up 27%.

Vietnam imports many raw materials and inputs for production such as coal, wheat, cotton, steel scrap, steel, etc., especially coal. Australia has opened the door to Vietnamese mangoes, rambutans, dragonfruit, lychees, and frozen shrimp. Vietnam is promoting Australia’s permission to import passion fruit, rambutans, rambutans, fresh coconut, durian, and fresh prawns. Australia is promoting Vietnam’s opening to import deer meat, kangaroo meat, honey, peaches, and apricots.

As of February 2023, Australia has 590 investment projects in Vietnam with a total capital of about $2 billion. Meanwhile, Vietnam has invested in Australia 88 projects with a total investment of $592.3 million. In the field of agriculture, fisheries and forestry, trade turnover for the first time exceeded the impressive mark of $6 billion Australian dollars in 2022, which has more than doubled in the past two years.

Fostering stronger bilateral relations between Vietnam – Australia

At the invitation of Prime Minister Phạm Minh Chính, Prime Minister Anthony Albanese of Australia paid an official visit to Vietnam on June 3 and 4. On the morning of June 4, immediately after the official welcome ceremony, the prime ministers of the two countries held a meeting at the headquarters of the Government Office. At the meeting, Prime Minister Anthony Albanese stressed that Australia values the Strategic Partnership with Vietnam and identifies Vietnam as a central part of Australia’s strategic relationship with Southeast Asia.

Prime Minister Phạm Minh Chính affirmed that Vietnam will create favorable conditions for Australian businesses to invest in Vietnam in the fields of infrastructure development, telecommunications, finance and banking, education, high-tech agriculture, green transition, digital transformation, and population data construction. Prime Minister Chính also requested Australia to create favorable conditions for Vietnamese businesses to invest in Australia in the fields of mining, agriculture, e-commerce, aviation, and tourism; requested Australia to create conditions to expand the market for Vietnamese exports; appreciated Australia’s decision to increase ODA to Vietnam by 2.5% in the 2023-2024 fiscal year, and suggested that ODA cooperation be an important component in the future partnership.

Prime Minister Anthony Albanese affirmed that Australia looks forward to further expanding security and defense cooperation with Vietnam; affirmed to continue maintaining ODA cooperation; agreed to promote two-way investment cooperation; continue to increase scholarships for Vietnamese students; agreed to review the Air Services Agreement (1995) to adjust the number of flights between the two countries; agreed to actively implement cooperation in new areas of cooperation such as the digital economy, digital transformation… Prime Minister Anthony Albanese announced a support package of 105 million Australian dollars for Vietnam for cooperation on infrastructure, climate change adaptation and energy transition.

Conclusion

In 2023, Vietnam and Australia celebrate 50 years of diplomatic relations between the two countries. The two countries have a strong economic relationship, with trade and investment growing steadily in recent years. Australia is Vietnam’s 7th largest trading partner, and Vietnam is Australia’s 10th largest trading partner. There is also significant cooperation in the areas of education, defense, and tourism.

The future of the Vietnam-Australia relationship is bright. There are also many opportunities for businesses and individuals from both countries to work together. If you are an Australian investor looking to expand your business into Vietnam, Viettonkin Consulting can help. We have extensive experience in the Vietnamese market and can provide you with the support you need to succeed. Contact us today to learn more. With our help, you can take advantage of the many opportunities available in Vietnam and build a successful business. Don’t hesitate to reach out to us!