Priorities clear for cooperation between ASEAN and Australia

How does Australia’s Southeast Asia Economic Strategy align with Vietnam’s priorities in advancing green initiatives?

Louise Adams, advisory board member of the ASEAN-Australia Centre

Australia’s prosperity, security, and economic future are intimately linked to the region, and we want to increase two-way trade. Australia’s Southeast Asia Economic Strategy to 2040 provides a blueprint to do that.

We celebrated the first-year anniversary of “Invested: Australia’s Southeast Asia Economic Strategy to 2040” in October 2024. Invested is a strategy informed by the business community, for a business audience, that sets out a blueprint for how businesses can lead the charge to strengthen our economic engagement with the Southeast Asia region.

Australia is drawing on a range of resources, including official development assistance, trade and export finance, climate finance and domestic expertise, to work with Vietnam to achieve our shared net-zero emissions target by 2050.

Australia’s Partnerships for Infrastructure programme also provides a platform for collaborative research and information exchange on prioritised energy topics. Through Export Finance Australia and the Australia Climate Finance Partnership, Australia has already provided $80 million to support electric vehicle infrastructure in Vietnam.

What specific opportunities do you see for Australian and Vietnamese companies to collaborate in the digital economy?

Australia and Vietnam have the architecture to support greater collaboration: a Comprehensive Strategic Partnership that has Australia’s first-ever climate, environment, and energy cooperation pillar; the Vietnam-Australia Enhanced Economic Engagement Strategy; and the Invested initiative, which builds on bilateral free trade agreements.

To this end, in 2024, an institutional investor mission, and two Australia-Southeast Asia Business Exchange missions (one focused on digital technology and one focused on green economy education and skills) have visited Vietnam.

I anticipate that future Australian interest will centre largely on digital transformation, education, agriculture and food, and renewable energy and the green economy sector.

What measures is Australia taking to encourage investment or technology transfer to Vietnam in renewable energy and digital innovation?

There are 10 priority sectors in Invested. Green energy transition and digital economy are among the sectors to watch in Vietnam. Cooperation in these sectors goes directly towards our region’s most pressing challenges – to meet our net-zero by 2050 targets, to see Vietnam achieve high-income country status by 2045, and to secure the prosperity, stability, and security of our region for future generations.

There is enormous potential for cooperation between Vietnam and Australia in these sectors. We are drawing on a range of resources, including official development assistance, trade and export finance, climate finance and domestic expertise, to work with Vietnam to achieve our shared net-zero emissions target by 2050. Australia’s Partnerships for Infrastructure initiative also provides a platform for collaborative research and information exchange on prioritised energy topics.

Through Export Finance Australia and the Australia Climate Finance Partnership, Australia has already provided $80 million to support electric vehicle infrastructure in Vietnam.

On digital transformation, the Aus4Innovation programme is strengthening Vietnam’s sci-tech capability. Through this scheme, Australia and Vietnam are working together to explore new areas of technology, digital transformation, and sharing knowledge to increase capability in digital foresight, planning, commercialisation, and innovation policy.

Digital transformation also cuts across other sectors, with investments in edtech, healthtech, and agritech expected to rise.

And the Australia-Bank Partnership Phase 2 has facilitated the World Bank to provide technical assistance to Ho Chi Minh City to enhance the city’s digital governance capability and digital transformation roadmap.

What challenges do you foresee in fostering deeper economic cooperation between Australia and Vietnam, particularly in green energy and digital sectors?

We recognise it will take a whole-of-nation effort from the Australian government, led by the Australian community, business and industry, in partnership with Southeast Asian governments and the private sector, to realise the commercial potential between Australia and the region.

As noted, 2024 has been the first year of implementing Invested. Several of the recommendations address the need to raise awareness – to address a lack of knowledge of markets, sectors, and low regional literacy.

Alumni have a critical role to play in this, and I am delighted that we have strong people-to-people connections between Australia and Vietnam, including those who have studied, have family, or an otherwise strong connection to Australia.

Outbound business and investment missions are also giving businesses first-hand experience of opportunities in the region, such as those I referenced before.

Another focus of Invested is on building capability to ensure that Australia and the region have the skills and capability to pursue opportunities and address economic challenges.

There is already important work being undertaken by the government to remove blockages and deepen investment between Australian and the region.

Some of the actions already underway include standing up Investment Deals Teams across Southeast Asia with a hub in Ho Chi Minh City and representation in Hanoi to identify a pipeline of investment opportunities; appointing Australian business leaders such as myself as Business Champions; and targeted Australia-Southeast Asia Business Exchange missions to help Australian business familiarise themselves with rapidly changing markets.

There is also a $2 billion commitment as part of the Southeast Asia Investment Financing Facility, and the establishment of tech Landing Pads, including in Ho Chi Minh City, to provide tailored advice for Australian tech companies to set up in the region.

Vietnam among top 3 destinations appealing to Australians Australians are continuing to travel in record numbers with the latest data revealing Vietnam as one of the three top-growth destinations, according to the Singapore-based asianaviation.com on December 16.

Australia relationship has never been better The Australia-Vietnam relationship has never been better. Developing over the past 51 years to be firmly set in friendship and trust.

Investing in Australia and Vietnam’s shared prosperity At this time of year, like many, I will reflect and celebrate achievements and look ahead to the year to come. As 2024 comes to a close, and we all look forward to a relaxing time with family and friends, I am buoyed and inspired by what Australia and Vietnam have achieved together this year. Building on our 50th anniversary year, the momentum has continued, and our relationship goes from strength to strength.