Fast-changing Vietnam presents opportunities for New Zealand

The Asia New Zealand Foundation Te Whītau Tūhono launched its latest report, "Vietnam and New Zealand at 50: The next chapter" on February 20. The report explores the growing potential of the bilateral relationship as the two nations celebrate 50 years of formal diplomatic ties.

Commissioned by the foundation and authored by Haike Manning, the report builds on the 2020 publication, "Vietnam & New Zealand: Let’s Go", offering fresh insights into Vietnam's dynamic environment and celebrating the people who have contributed to the New Zealand – Vietnam relationship over the last 50 years.

Suzannah Jessep, chief executive of the foundation, said, “Vietnam is already our 14^th biggest trading partner, with bilateral trade worth NZ$2.68 billion ($1.55 billion) in 2024. Given Vietnam’s booming economy, the potential for New Zealand businesses, from fashion and food to tech and the arts, is huge. We do have a bit of a trade deficit at the moment, but that just means there's room to grow.”

In the report, Manning describes the pace of change in Vietnam as "remarkable”. “It is expected to see some of the fastest income growth in the world over the next decade," he says. “Vietnam’s increasingly wealthy consumers trust our high quality, safe food, which has underpinned significant growth in our exports to Vietnam over the past 10 years.”

Warrick Cleine, chair of the New Zealand Chamber of Commerce in Vietnam, said, "Vietnam will be a good market for New Zealand consumer products, good for education services. If you look at the last five years and post-pandemic, Vietnam is consistently outperforming other economies in the region, which means a disproportionately greater opportunity for New Zealand here in the future. The China+1 trend is set to continue, with more investment and manufacturing capacity shifting from China to Vietnam, which will change New Zealand’s relationships with both countries."

Beyond trade, the report also celebrates long-standing ties between the two countries, especially in areas like healthcare, education, and diplomacy.

People-to-people connections are flourishing, with 8,000 Vietnamese visiting New Zealand in 2023 and 40,000 New Zealanders visiting Vietnam in 2024. New Zealand and Vietnam also share a commitment to a stable international environment and are actively collaborating on defence and security matters.

New Zealand shares sustainable development experience with Vietnam With its commitment to environmental preservation reflected in both policy and practice, New Zealand hopes its experiences can provide guidance for Vietnam's shift to a greener economy.

New Zealand’s approach to sustainable ambitions New Zealand’s development policy direction is influenced by our position as a small independent Pacific country, deeply engaged in our region and the world. We are a nation of explorers and adventurers. We are agile and adaptable, with a mind-set that enables us to be innovative in the face of new challenges.

Vietnam and New Zealand look to a sustainable future New Zealand is a country that takes sustainability seriously, and our commitment to preserving the natural environment is embedded in both our policies and our practices.