A new report by Asia Society Australia and The Australian APEC Study Center at RMIT University showed that Vietnam is a perfect economic partner for Australia.
Supported by the Australian state of Victoria’s government, the 'A Path to Vietnam: Opportunities and Market Insights for Australian Business' report aimed to raise awareness of business opportunities and show pathways for Australian companies to succeed in Vietnam.
The findings from this report pointed out that Vietnam is a standout option for Australian businesses when it comes to considering a market for goods and services and business investment.
The market will help Australia capitalize on economic complementarities and diversify economic partnerships and supply chains.
The report said Vietnam, a densely populated, developing, and urbanizing country, is rapidly transitioning to an industrial and market-based economy through trade and investment and is making strides to position itself to thrive in the Fourth Industrial Revolution (Industry 4.0).
Significant opportunities for Australian businesses exist in beef, grains, cotton, horticulture, and processed foods; resources like mining, minerals, and metals; services in education, ICT, insurance, environmental protection and health; and Industry 4.0-related sectors of fintech, agtech, healthtech, edtech, logistics, IT services, and digital skills.
According to the report, Vietnam always welcomes Australian firms, with Australian brands highly evaluated.
One of the researchers, Craig Emerson, former Australian Minister for Trade and Competitiveness and incumbent director of the Australian APEC Study Center, noted that both Australia and Vietnam have complimentary economic systems and seek diversification of their trading partnerships, amidst a weakening global economy and geopolitical tensions.
Currently, the two nations are both working on enhanced economic strategies to meet a joint ambition to become top ten trading partners of each other and to double investment in each other.
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.
“We’re at a sweet spot in our partnership," the report quoted Australian Prime Minister Scott Morrison as saying during his trip to Vietnam last year.
"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.”