Vietnam and Australia explore agriculture minerals and energy cooperation

During talks in Canberra on August 11, the two ministers discussed measures to boost cooperation in agriculture, minerals, energy, and coordination under bilateral and regional economic frameworks.

Photo: Ministry of Finance

At the meeting, Minister Tuan highlighted the strong friendship and cooperation between Vietnam and Australia after more than 50 years of diplomatic relations, which were elevated to a Comprehensive Strategic Partnership in 2024. Under the upgraded framework, economic, trade and investment cooperation remains a key pillar, with significant potential for further growth.

Regarding economic and trade ties, he said bilateral trade reached approximately $8.2 billion in the first half of 2026, up 21.9 per cent on-year, demonstrating continued expansion in both scale and growth rate.

He called on Australia to further promote two-way investment, intending to double bilateral investment and raise two-way trade to $20 billion under the Enhanced Economic Engagement Strategy.

The minister also proposed stronger cooperation in finance and banking, capital markets and green finance, areas in which Australia has considerable expertise, and Vietnam has growing demand as its economy develops.

“Vietnam is ready to serve as a gateway for Australian businesses to access the ASEAN market of more than 700 million people. We hope the relevant agencies of both countries will strengthen connections, introduce specific investment opportunities and support businesses from both sides in expanding their operations in each other’s markets,” Minister Tuan said.

He also highlighted the close people-to-people links between the two countries, noting that more than 400,000 Vietnamese people live in Australia, alongside around 25,000 Vietnamese students. This community is an important resource for strengthening people-to-people exchanges, tourism, education and economic connectivity.

Minister Tuan thanked the Australian government, through the Department of Foreign Affairs and Trade, for committing $69 million in total grant aid to Vietnam for 2026–2027. The funding will contribute to activities under the Comprehensive Strategic Partnership and the Development Partnership Plan between the two countries.

Vietnam hopes Australia will maintain and expand its official development assistance, with a focus on climate change response, high-quality infrastructure, and Vietnam’s priority areas.

The government is targeting high-income status and developed-country status by 2045, requiring sustained high growth in the coming years, the minister said. High-quality technology, innovation and the private sector have been identified as important growth drivers.

As climate change and rising sea levels create growing challenges, Vietnam hopes Australia will continue to provide technology, expertise, and resources to strengthen climate resilience, develop sustainable infrastructure, and support the country’s green transition.

Minister Tuan presenting a gift to Minister Farrell. Photo: Ministry of Finance

Highlighting Australia’s strengths in agriculture, livestock farming, mining and mineral processing, Minister Tuan called on Australia to introduce and connect Vietnamese partners with businesses that have the technology, capital and expertise to invest in Vietnam.

He cited SunRice as an example of an Australian company investing effectively in Vietnam’s rice and food sectors, covering areas from varietal improvement and production to harvesting and processing. Such projects add value to agricultural products while bringing advanced technologies and production methods to Vietnam, he said. Vietnam hopes Australia will introduce more businesses with similar capabilities to expand investment cooperation.

In the minerals sector, Vietnam seeks to strengthen cooperation with Australia in exploration, mining and, particularly, deeper mineral processing, building on Vietnam’s potential in rare earths, nickel, and other critical minerals. Minister Tuan called on Australia to connect Vietnamese partners with companies possessing advanced technologies, management expertise and capacity for long-term investment.

In energy, Vietnam continues to have strong demand for energy resources to support economic growth while accelerating the development of new and renewable energy sources and energy infrastructure.

Vietnam is currently one of Australia’s major coal import markets and wants to maintain and expand cooperation in this area, while exploring opportunities in gas-fired power, offshore wind and other energy projects.

The two sides also discussed potential cooperation in regional energy connectivity, power infrastructure and energy solutions supporting digital transformation, AI, and industrial development.

Australian Minister for Trade and Tourism Don Farrell said there remained substantial room for Vietnam-Australia trade to grow. Bilateral trade has increased significantly in recent years, he said, adding that Australia wants to further strengthen bilateral economic ties.

Minister Farrell welcomed Vietnam’s development goals, including its target of becoming a developed country by 2045, and asserted Australia’s desire to be an important partner in Vietnam’s transformation and development process.

Referring to the Vietnamese community in Australia, he described it as an important bridge for further promoting tourism, people-to-people exchanges and economic ties between the two countries.

He said Australia was implementing programs and providing resources to help Australian businesses seek new markets, particularly in Southeast Asia, and expressed a willingness to support Australian companies in exploring and expanding investment and business opportunities in Vietnam.

Australia welcomed Vietnam’s priority areas and was ready to hold further discussions on cooperation opportunities in agriculture, minerals, energy and other areas of mutual interest.

Minister Tuan also called on Australia to continue supporting Vietnam at multilateral forums for the common interests of both countries, and to support Vietnam in successfully hosting APEC 2027, including the 2027 APEC Finance Ministers’ Meeting.

On the occasion, Minister Tuan invited Minister Farrell to lead the Australian delegation to the fifth Vietnam-Australia Economic Partnership Meeting (EPM), scheduled to take place in Hanoi in November. The fifth EPM will provide an opportunity for the two sides to review implementation of the Enhanced Economic Engagement Strategy and the 2024-2027 Action Plan, while discussing and agreeing on directions for cooperation in the next period.

Vietnam is ready to coordinate with Australia in preparing the meeting’s content and agenda, while the two sides’ focal agencies will continue discussions to determine a suitable date based on the schedules of the two ministers.

The two ministers agreed to maintain close coordination and make effective use of bilateral economic cooperation mechanisms to facilitate investment and business expansion by companies from both countries. They also agreed to strengthen cooperation in areas with high potential, contributing practical results to the Vietnam-Australia Comprehensive Strategic Partnership.

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