Việt Nam-Australia expect brighter future for import-export sector

Having one of the region's fastest-growing middle classes and a young population willing to spend, Việt Nam represents an important market for foreign goods. — Photo courtesy of Austrade

HÀ NỘI — As both Australia and Việt Nam continue to take solid action to make their trade partnerships expand year after year, a brighter future awaits the import and export sector, according to the Australian Trade and Investment Commission (Austrade).

Austrade said Việt Nam's upbeat growth projections have made it an attractive import-export destination. Thanks to several free trade agreements, it has sealed in recent years, Việt Nam's trade partnerships have grown from strength to strength.

It added that having one of the region's fastest-growing middle classes and a young population that's willing to spend, Việt Nam represents an important market for foreign goods. As one of Việt Nam's main trading partners, Australia supplies the Southeast Asian country with an expansive range of premium products, including meat, seafood, dairy products, wine and fresh produce. Over the years, Australian products have seen an increasing demand among Vietnamese consumers.

In 2021, the total trade between Australia and Việt Nam in the agriculture, fisheries and forestry sectors surged by 64 per cent to AUD4.4 billion, according to Australian government data.

To help Australian producers take advantage of this growing interest for 'Made in Australia' goods, Austrade utilises its knowledge of the local market and strong tie-ins to find the right market for Australian exporters.

Austrade generates market information and insights, promotes Australian capability, and facilitates connections through its extensive global network for import and investment support.

Rebecca Ball, a Senior Trade Commissioner at Austrade Vietnam, pointed out that proximity, with Việt Nam only 4,000 miles nearly south side to Australia, is a big factor in why the trading partnership between these two countries works seamlessly.

Separated by seas and the Pacific Ocean, these two nations enjoy a consistent trade flow by water and air. This geographical proximity means goods are delivered swiftly, maintaining the freshness of raw products and the quality of preserved goods.

Ball and Tony Harman, Agricultural Counselors for the Embassy of Australia in Việt Nam, highlighted the FTAs entered by Australia and Việt Nam as a major trade enabler.

The two countries signed trade liberalisation pacts, including ASEAN-Australia-New Zealand Free Trade Area, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership Agreement. These agreements have significantly reduced or eliminated barriers to trade in goods and investment and enhanced wealth prosperity in Australian and Vietnamese businesses.

Ball said there were challenges and issues that need to be monitored and supported to help exporters and importers navigate one another's systems.

"There are complexities on both sides, and much interpretation is required. But with the countries adhering to the same quality standard, there's trust and confidence for Australian producers and suppliers to gain more access to a market with significant potential," she added.

Information and technology transfer will also be crucial in elevating the partnership. Australia, considered one of the world's most advanced and modern countries, has the technical knowledge, data, inventions and materials that could help Việt Nam upgrade its own supply chain.

Harman said this technology transfer in trade highlighted the importance of implementing relevant safeguards for exported and imported products and facilitating the "pathway to the markets".

"We see positive communication between exporters and importers and growing levels of trust and understanding of what the market needs to continue the supply of Australian food and beverage products. We are confident these strong trade partnerships will continue to grow, and we look forward to bringing more quality Australian products to household tables here in Việt Nam," Ball said. — VNS