Vietnam-Australia trade forecast to grow up after TPP

Thursday, 22 October 2015
Bilateral trade between Vietnam and Australia would likely to develop significantly once the Trans-Pacific Partnership (TPP) agreement – which involved the two of them and 10 other countries – comes into effect.
 

The Vietnam News Agency quoted the Vietnam Trade Office in Australia as saying that the two nations had similar benefits and approaches during the TPP negotiation process. Australia had not only carried out numerous initiatives to accelerate the deal’s completion but also assisted Vietnam in its international integration.

 

Two-way trade had doubled from US$3 billion in 2005 to over US$6 billion in 2014.  Australia was the eighth biggest importer and 12th biggest exporter of Vietnam while Vietnam was Australia’s 14th largest importer and exporter. During the reviewed period, Vietnam always saw trade surplus with Australia with US$1.93 billion recorded in 2014.



Illustrative image (Internet)


Trade experts said that there remained huge opportunities for Vietnam to accelerate exports of its advantage products such as textile and garment, leather footwear, furniture, farm produce and seafood to Australia.

 

Under the ASEAN-Australia-New Zealand free trade agreement, which came effect on January 1, 2010, all Vietnamese goods exported to Australia and New Zealand would enjoy tax exemption by 2020. From 2015-2019, 96.3% of export tariffs would  be slashed to zero, while the remaining 3.7% would remain at 5-10%, mainly imposed on insect pesticides, leather, cloth, machines and equipment, the agency reported.  

With TPP, both Vietnam and Australia played a central role in the value chain of the Asian-Pacific region, which would boost their bilateral trade, production and investment, the agency said.

 

Regulations on trade and customs facilitation and transparency would create favorable conditions to increase bilateral trade while compatible investment and intellectual property principles would also facilitate the influx of Australian investments into Vietnam, it noted.

 

Beside to trade, the investment relationship between the two nations had also earned encouraging achievements.

 

The Voice of Vietnam (VOV) reported that as of last year, Australia had more than 320 valid projects in Vietnam with a total registered capital of US$1.65 billion, ranking 19th among 101 countries and territories investing in the Southeast Asian countries. Most of their investment came into energy, construction, agro-fisheries-forestry, service and education.

 

With sufficient technological and financial capacities, Australian businesses have become more and more important partners of Vietnamese firms, VOV quoted Minister of Industry and Trade Tran Tuan Anh as saying.

 

According to the Vietnamese Ambassador to Australia Luong Thanh Nghi, Vietnamese Government vowed to create the right conditions for Australian businesses in doing business in the country. Meanwhile, domestic companies have also showed their increasing interests in business and investment opportunities in Australia, Nghi said.

 

However, chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said two-way relations were yet to match potentials and expectations from the two countries. In the time to come, Loc said the two countries needed to make greater efforts in facilitating two business communities.

 

Australia was a developed market economy and was promoting its global integration process. Especially, Australia’s participation in the TPP would help the country's investment environment become more favorable for Vietnamese enterprises, Loc emphasized./.


Van Hai (Source: vietrade.gov.vn)

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