Investing in Australia and Vietnam’s shared prosperity

Sarah Hooper, Australian Consul-General Ho Chi Minh City

I’ve been reflecting on the significance of global events, and the increased concern brought by geostrategic uncertainty. In 2024, the war in Ukraine continues, as does the conflict in the Middle East. Online discussion surrounding political debate is often marred by misinformation and deepfakes. We’ve felt the impacts of cyber and AI on our lives; the disruption to airlines, banks, hospitals, caused in July by the global IT outage, is a clear example. In Australia, cost-of-living pressures continue to impact our community despite inflation easing.

In this uncertain environment, working with our partners and friends to navigate these complex situations is increasingly important. Vietnam in this region stands out as a key partner for Australia as we strengthen and diversify our trade links and secure supply chains. Through the elevation of the relationship to a comprehensive strategic partnership in March 2024, the governments of Vietnam and Australia have committed to deepening further the bilateral trade and investment relationship across six pillars of engagement, including enhanced economic cooperation.

Also in 2024, Australia marks the first anniversary of Invested: Australia’s Southeast Asia Economic Strategy to 2040 and 50 years of Australia-ASEAN Dialogue Relations, two significant milestones decades apart but both essential components of our shared future in the region.

Significant outcomes

Australia recognises that our security and economic future is intrinsically linked to Southeast Asia. Australia strives to be a trusted and reliable partner in the region. The Melbourne Declaration, adopted by leaders at the ASEAN-Australia Special Summit in March to celebrate the 50th anniversary of ASEAN Australia Dialogue Relations, along with the Invested programme articulate our commitment to a common prosperous future.

Vietnam is at the centre of Invested’s recommendations to grow investment between Australia and the region, which outlines actions that must be taken to realise the commercial potential between Australia and the region. We want Australian businesses to be able to harness the economic opportunities in Vietnam, and we want Vietnam to look to Australia as the key partner to support its future ambition.

Over the past year, we’ve turned strategy to action. The Australian government committed to several of Invested’s initiatives, and it is through our Investment Deal Team with staff in Ho Chi Minh City and Hanoi, a tech Landing Pad in Ho Chi Minh City and an Investment Financing Facility we are working to secure significant outcomes for Vietnamese and Australian businesses.

Through a programme of outreach with Australian businesses interested in working in Vietnam, we have established a pipeline of opportunities for investors, brought in new business clients and helped support projects that will have a national significance for Vietnam. We’re excited at the prospect of announcing new investments in the near future.

Raising awareness of Vietnam as an investment destination is a central component of Invested. Businesses can’t and won’t invest here if they don’t know the market. Vietnam has hosted two of Australia-Southeast Asia Business Exchange missions – one focused on tech and the other on education, training and skills, and also the first institutional investor business mission with various institutions. Australia’s Business Champion to Vietnam, Louise Adams, continues to be a strong voice for increasing business and commercial links between our two countries with her more than 20 years of experience working in Vietnam.

Louise is also a strong voice for Vietnam as an advisory board member of the new ASEAN-Australia Centre, launched in November this year. The centre is building Southeast Asia capability in Australia and is a focal point for driving greater literacy, and promoting greater collaboration between Australia and the region.

The centre will work across government, industry, academia, and civil society to strengthen connections. Along with other initiatives such as the Mekong Australia Partnership, our longstanding development programme, education initiatives, and our energy transition ambition, Vietnam and Australia have many avenues for cooperation. Industries across all sectors of engagement are benefitting from the commitment of both governments, all aiming to have a positive impact on the lives of ordinary citizens.

Australia is supporting Vietnam to discover solutions to plastic challenges as part of their involvement in CSIRO’s Indo-Pacific Plastics Innovation Network

Exciting potential

We support Vietnam’s deregulation agenda, making it easier for Australians to do business in Vietnam. It is encouraging to see many new legislative reforms take place in 2024, in particular those improvements to its regulatory settings for green energy transition and foreign investment. The reforms open opportunities for foreign investment in renewable energy projects, which complements both our focus to unlock investment opportunities for Australian businesses across Southeast Asia and to transition to net-zero.

We also look forward to the anticipated upgrade of Vietnam’s stock market to emerging market status. The development of well-functioning and transparent capital markets will be particularly important to support the development of Vietnam’s vibrant domestic sector – and again, will provide greater opportunity for investment.

But it’s not all about doing business in Vietnam. Australia is also removing blockages to make it easier to do business in Australia. The Australian government is establishing a new “front door” providing a single point of entry for investors which will help navigate approval processes and fast track major projects where possible. Australia’s push to reduce red tape for business complements our strong visitor economy, where we have expanded air services and doubled aviation capacity. We also have more Australians than ever travelling to Vietnam, with over 500,000 trips taken in 2024.

The Australian business community is excited by the potential of Vietnam’s economy, and we will remain the partner of choice for Vietnam to deliver on its ambitious goals.

Australia and Vietnam upgrades ties to a comprehensive strategic partnership Prime Minister of Australia Anthony Albanese and Vietnamese Prime Minister Pham Minh Chinh announced a major upgrade of the Australia – Vietnam relationship on March 5 to a comprehensive strategic partnership.

Australia and Vietnam strengthening ties with wool A delegation from WoolProducers Australia (WoolProducers), the peak organisation representing Australian wool farmers, is in Ho Chi Minh City from April 10 to 13, to launch the roadmap for wool processing in Vietnam.

Australia and Vietnam to develop competitive electricity market The Australian Embassy in Vietnam and the Electricity Regulatory Authority of Vietnam (ERAV) signed an MoU on April 17 to collaborate on the development of a competitive electricity market.

Australia and Vietnam foster education and training towards green economy An Australian education delegation is in Vietnam to take part in the Australia Southeast Asia Business Exchange (A-SEABX) Mission from September 25-27 in Hanoi and Haiphong, focusing on the transition to net zero and advancing green economy priorities.

Australia and Vietnam join forces to cultivate quality workforce for net-zero future Vietnam and Australia view the green economy as a vital area for cooperation, with Australia’s ambition to lead in renewable energy aligning with Vietnam’s focus on wind and solar development.

Australia and Vietnam strengthen ties at BBQ event Building on the success of the 2024 Taste of Australia’s Big BBQ, the Australian Embassy in Hanoi is hopeful of strengthening ties with Vietnam to promote Australian produce while fostering goodwill and understanding between the two nations.