The governments of Vietnam and Australia have announced the Australia-Vietnam Enhanced Economic Engagement Strategy and a roadmap to promote trade and investment ties between the two countries in the 2021 – 2025.

According to Associate Professor Dr. Chu Hoang Long from the Australian National University (ANU), the strategy is expected to open a new chapter in the relationship between the two countries, aiming to double two-way investment and become one of the top 10 trading partners of each other.

Long said the strategy focuses on key sectors that have new market opportunities to support the two economies to recover in the COVID-19 pandemic, and promote inclusive and sustainable development with high resilience to external influences. 

It emphasises the importance of complying with and strengthening a global trading system based on international rules, and is also the basis for promoting free trade and jointly addressing common challenges. 

Long spotlighted the fruitful development of the Vietnam – Australia relations, saying that over the past 30 years, trade turnover between the two countries has grown rapidly. 

In the first ten months of 2021, the two-way trade reached an estimated 10 billion USD, up about 50 percent year-on-year.

The two countries have built a reliable partnership, and ready to help each other in crises and unstable developments. The latest evidence is Australia's support activities for Vietnam in preventing the COVID-19 pandemic and promoting the recovery of green economy during the health crisis.

Long stressed that there is huge potential for Vietnam and Australia to expand their trade cooperation and investment as the two economies have their own comparative advantages that are more complementary.

The expert said the cooperation between the two countries will create reciprocal products and supply chains to serve the two markets and can be exported to third markets.

The geopolitical strength of the two countries can help form a potentially great trade and investment route between the two hemispheres, Long noted, adding that the bilateral cooperation between the two countries will not only attract investment between the two countries but also can lure investment from third countries, financial institutions and international corporations.

In addition to economic ties, Vietnam and Australia are increasingly connected in social and cultural aspects. Nearly half a million people of Vietnamese origin are living in Australia, This is an important cultural and economic bridge between the two countries.

The strategy is an inevitable step in the relationship between Vietnam and Australia, Long said. 

Vietnam needs to take advantage of Australia's support to improve the investment and business environment, better the capacity to be ready for receiving technology transfer; and upgrade value chains in terms of management and technology to quickly connect with Australia’s value chains and reach out to global value chains, he went on./.