A new report by Asia Society Australia and The Australian APEC Study Centre shows Vietnam is a perfect economic partner for Australia. 

Processing seafood for export in Vietnam. (Illustrative image).

Titled A Path to Vietnam – Opportunities and Market Insights for Australian Business, the report points out that Vietnam is a standout option for Australian businesses to consider as a market for goods and services and business investment, and that Vietnam will help diversify Australia’s economic partnerships and supply chains.

According to the report, Vietnam is a densely populated, developing and urbanising country which is rapidly transitioning to an industrial and market-based economy through trade and investment and making strides to position itself to thrive in the Fourth Industrial Revolution.

A fast-growing, emerging economy presents significant opportunities for Australian exporters of beef, live cattle, grains, cotton, processed foods, mining and mining equipment, as well as in the areas of education, ICT, insurance, environmental and health services, and Industry 4.0.

Researchers hold that operating in a foreign market requires an awareness of local challenges, regulatory hurdles, cultural differences and ways to address them. Vietnam is no different, but these problems can be navigated with the right approach and resources, says the report.

One of the researchers, Craig Emerson, former Australian Minister for Trade and Competitiveness and incumbent Director of the Australian APEC Study Centre, notes both Australia and Vietnam have complimentary economic systems and seek diversification of their trading partnerships, amidst weakening global economy and geopolitical tensions

Currently Australia and Vietnam are drafting an Enhanced Economic Engagement Strategy, aiming to become each other’s top ten trading partners and to double two-way investment. The Southeast Asian nation will also be an important partner for Australia as it seeks to expand its economic relationships in the Indo-Pacific and chart its pathway to recovery after COVID-19.

During a Vietnam visit last year, Australian Prime Minister Scott Morrison affirmed “We’re at a sweet spot in our partnership. Vietnam is rapidly industrialising and developing, and Australia is willing and able to support that growth. Our two economies are complementary ― I believe we can and will prosper together. … In the years ahead, I would like to see Australian investment in Vietmam grow further…. The capacity for Australia and Vietnam to work even more closely together is enormous. Our partnership is full of potential. It’s full of opportunities.”