Trade balance surplus of 54.7 million USD

According to data from the Vietnam Trade Office in Australia compiled from the General Department of Vietnam Customs, the bilateral trade situation between Vietnam and Australia in the first 5 months of the year reached more than 1.19 billion USD, of which, the export value from Vietnam to the Australian market reached more than 622.4 million USD.

Export of machinery, equipment, and spare parts to Australia in the first 5 months of 2024 reached 405.4 million USD, with an increase of 121.5%. Photo: Cong Thuong

Bilateral trade turnover recovered positively, increasing by 19% over the same period last year and by 5.3% in the first 5 months. In particular, export turnover grew strongly (up 66.2% in May and up 31.1% in the first 5 months of the year). Notably, in the first 5 months of 2024, Vietnam's trade surplus was 54.7 million USD, and the trade deficit also decreased sharply (-66.1%), showing that trade relations are becoming more balanced.

Vietnam's top 5 key export products witnessed strong growth in the first 5 months. Specifically, machinery, equipment, and spare parts reached 405.4 million USD, an increase of 121.5%; phones of all types and components reached 362.7 million USD, increasing 25.2%; crude oil reached 317.2 million USD; computers, electronic products, and components reached 223.3 million USD; and textiles and garments reached 209.6 million USD, with an increase of 20.6%.

Vietnam's agricultural, forestry, and fishery products exported to Australia also grew positively. Seafood exports reached 125.7 million USD; wood products achieved 59 million USD, with an increase of 27%; fruit and vegetable products reached 41.3 million USD; cashew nuts reached 37.6 million USD; 27.9 million USD for coffee; 9.97 million USD for rice and 3.67 million USD for pepper, with an increase of 17.1%.

Vietnam's imports of goods from Australia decreased in the first 5 months of the year, in most main imported items (coal, cotton, wheat, iron and steel of all kinds). The reason is that Vietnam's production and export situation at the end of 2023 and early 2024 also faces many difficulties, with a lack of orders, leading to the demand for imported raw materials also being affected, including imported goods from Australia, causing import turnover to decrease compared to the same period last year.

Promotion and market connection activities

According to the Vietnam Trade Office in the Australian market, trade connection and promotion activities have been widely established from the beginning of the year. On March 4, 2024, the Trade Office organized a booth to introduce and connect trade and investment with Vietnam at the Special Fair within the ASEAN - Australia Special Summit held in Melbourne. From May 19 to 21, 2024, they successfully organized the Vietnam Trade Office's booth at Australia's major food and beverage industry fair - Sydney Foodservice 2024 at the ICC International Conference Center in Sydney. The fair displayed and introduced typical, high-quality products that are safe for health and environmentally friendly.

From June 12 to 14, 2024, the Trade Office organized the Vietnam Trade Office's booth and coordinated the organization of Hanoi's agricultural product display area at the Global Sourcing Fair - Global Sourcing Expo Sydney 2024, introducing Vietnamese products made from environmentally friendly materials such as silk and banana trees.

The Vietnam Trade Office in Australia said bilateral relations between Vietnam and Australia are developing positively in all fields, especially politics, economics, and trade. Photo: International Finance Magazine

According to the Vietnam Trade Office in Australia, after a long time of promoting and directing Vietnamese businesses to attend professional international fairs in Australia, it has created a sustainable foundation for export activities of Vietnam to this country when the market is favorable.

The Vietnam Trade Office in Australia said bilateral relations between Vietnam and Australia are developing positively in all fields, especially politics, economics, and trade. In March 2024, the two countries officially upgraded their relationship to the level of Comprehensive Strategic Partnership, opening up prospects for further promoting trade.

Vietnam's products are rich and diverse, with some having reached the market and affirmed their brands and quality, such as shrimp, basa fish, cashew nuts, and pepper. Other products also began to assert their quality and the value of imports into Australia was increasing.

However, there are strict regulations and technical barriers in the Australian market, and some standards are even higher than those in the US and EU.

On the other hand, Vietnam is not Australia's only FTA partner. Currently, Australia has 11 FTAs in effect with 20 partners, 9 other FTAs are under negotiation or have not yet taken effect with 14 new partners (including the EU). These FTA partners also enjoy Australia's preferential commitments and will therefore compete with Vietnam when accessing this market. Many direct competitors with Vietnam in terms of export structure such as China, Thailand, and Indonesia... all have advantages in terms of potential and experience.

To promote the export of Vietnamese goods to this market, the Trade Office will continue to make trade promotion activities, investment, connections, and search for partners in Australia with cooperation needs, focusing on goods and products that Vietnam has strengths in. It will also prepare necessary programs and content for prestigious fairs held in Australia such as Global Sourcing Expo, Finefood Food and Beverage Fair, and Furniture Fair HomeShow, among others.