The bilateral trade turnover between Vietnam and Australia reached a new record of $15.7 billion in 2022, a significant increase of 26.91% compared to the previous year. Of this, the export turnover from Vietnam to Australia recorded a marked improvement, reaching $5.55 billion, a 26.18% increase, while imports from Australia to Vietnam reached $10.14 billion, a 27.31% increase.
Data from the Vietnam Trade Office in Australia shows that many key export products of Vietnam continue to experience high growth despite various challenges. These include machinery, equipment, tools and other spare parts, which increased by 62.1%, footwear, which increased by 41.3%, textiles, which increased by 26.3%, aquatic products, which increased by 37.3%, iron and steel of all kinds, which increased by 102.9%, bags, wallets, suitcases, and umbrellas, which increased by 24.8%, coffee, which increased by 62.53%, and electric wires and cables, which increased by 81.2%.
In the opposite direction, Australia continues to be a significant supplier of raw materials for domestic production such as coal, cotton, ores, and other minerals, wheat, etc. Approximately 80% of Vietnam's prong is imported from Australia, with the import proportion reaching 30-70% of Vietnam's total import turnover from other countries, depending on the item.
Assessing the trade relationship between the two countries, the Head of the Vietnam Trade Office in Australia, Nguyen Phu Hoa, stated that the industry structure of Vietnam and Australia is complementary, helping the two economies increase their profits instead of competing.
In general, in the past year, the bilateral trade goals were achieved quickly, under the direction of the two countries' senior leaders. Vietnam became Australia's 10th largest trading partner for the first time, and Australia is currently Vietnam's 7th largest trading partner.
Economic experts believe that the potential for trade growth between Vietnam and Australia is huge. The benefits of the Free Trade Agreements (ASEAN-Australia-New Zealand Free Trade Agreement - AANFTA, Comprehensive and Progressive Agreement for Trans-Pacific Partnership - CPTPP, and The Regional Comprehensive Economic Partnership (RCEP) have and will continue to open up opportunities for cooperation between the two countries in many new fields.
In December 2021, Vietnam and Australia signed a Strategy to strengthen economic ties and issued a Roadmap to promote trade and investment relations between the two countries in the first period of 2021-2025. The overall goal of the strategy is to bring the two countries into each other's top 10 trading partners and double investment in each. This is a premise to create favorable conditions for businesses of the two countries to expand cooperation.
Vietnam-Australia trade turnover can reach $15 billion
At the event "Vietnam-Australia Business Connect," organized by the Vietnam Trade Office in Australia, Mr. Graham Kinder, Vice Chairman of the Australia-Vietnam Business Council, said that Australian businesses are aware of the many investment opportunities in all areas in Vietnam, including trade, investment, development, education, tourism, and transportation. These fields are Australia's strengths, and businesses from Australia always want to expand their investment in Vietnam.
Moreover, Mr. Kinder believes that Vietnamese businesses can also take advantage of investment cooperation opportunities across all regions, states, and localities of Australia to expand their business activities and investments Vietnam has the advantage.
The Head of the Trade Office, Nguyen Phu Hoa, shared that in the past time, the Trade Office has strictly implemented the policy on economic relations with Australia of the Vietnamese Government, actively implemented the directions of the Ministry of Industry and Trade and the representative agency of Vietnam in Australia. Many measures, both direct and online, have been applied, including conducting policy and market research to promote timely exports, organizing fairs to introduce the export industry's strengths of Vietnam, expanding the development of the digital economy, green economy, researching and successfully building the brands of many Vietnamese products in Australia such as durian, coconut, rice, frozen ginger, frozen jackfruit, non-alcoholic beverages, toys, construction materials, and products for the energy industry.
Entering 2023, the Vietnam Trade Office in Australia plans to continue implementing many promotion programs according to the action plan set out, related to industries with high turnover, following the direction of the Ministry of Industry and Trade on expanding import and export space for Vietnam's products. In addition, the digital economy will also be promoted by the Trade Office, especially with agricultural products. In particular, many new products of Vietnam show growth potential in the Asia-Pacific market such as frozen fruits, including jackfruit, passion fruit, durian and some spices.
Read more: Agricultural Products Industry Report
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