PM Phuc welcomes Australian firms to Vietnam

Prime Minister Nguyen Xuan Phuc meet Australian investors in Sydney on Friday. Source:VNA

Speaking at the Vietnam-Australia Business Forum in Sydney, the most important investment promotion event during his visit, Prime Minister Phúc showed his appreciation for the hundreds of businesses and investors from both sides attending the event, as evidence of close two-way trade relations.

Regarding the 18 cooperation agreements exchanged at Friday’s forum, among them Vietjet Aviation JSC’s plans for direct flights to Australia, the PM considered these facilitating conditions as catalysts for future investment and business between the two countries, in fields such as energy, aviation, maritime transport, agriculture, education, and services.

In response, James McGrath, Assistant Minister to the Australian Prime Minister, expressed his pleasure in seeing bilateral diplomatic relations enter their 45th year, saying that Vietnam had become a dynamic economy and with one of the world’s highest growth rates.

He also commemorated the recently signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), saying it would benefit all parties involved and be a driving force behind regional economic reform.

Vietnam is now Australia’s 15th largest trading partner, while Australia is Vietnam's seventh largest, with immense potentials in years to come, according to McGrath.

In particular, Vietnam is Australia’s sixth largest agricultural export market, with high quality products such as beef, wine and milk. Another area of good cohesion is education, with Vietnamese students being Australia’s fourth largest international student group.

With the government of Vietnam’s continuous efforts to improve the investment climate, he was confident that two-way trade would continue to grow.

McGrath also encouraged Australian businesses to explore the Vietnamese market, strengthening the strategic partnership and bilateral cooperation.

PM Phuc agreed, saying 2017 two-way trade turnover reached about $6.5 billion in 2017, up by 22 per cent from 2016 with virtually no deficit, but still had room for development.

Australian investors have put up to $1.9 billion worth of capital in 400 Vietnam-based projects, in the fields of processing, manufacturing, agriculture, forestry and fishery, education and health services. Vietnam is also a top travel destination for Australian tourists, with 400,000 visitors in 2017, according to the Prime Minister.

He also asked Vietnamese ministries and localities to promote information exchanges and cut business procedures to help Australian investors in Vietnam.

The PM affirmed the Vietnamese government’s commitment to maintaining stable inflation and exchange rates, flexible use of fiscal and monetary instruments to support the economy; continuing to improve the quality of legal institutions and administrative governance to maintain a fast-growing and sustainable economy.

With strong purchasing power, young population structure, strong Internet platform, preferential corporate tax policies of 15 per cent and a surge in FDI inflows with a total registered capital of $36 billion last year, Vietnam is heading towards high-tech industrial agriculture and other supporting industries.

The forum is organised by the Australian Trade and Investment Commission, in collaboration with the Ministry of Planning and Investment of Vietnam, focusing on policy dialogue, legal policies in the fields of investment, trade and finance, as well as business networking among participants.