Vietnam takes synchronous measures to draw Australian capital: official

Vietnam will continue with synchronous measures to attract foreign investment effectively, especially from Australia, said deputy head of the Ministry of Planning and Investment (MPI)’s Foreign Investment Agency (FIA) Vu Van Chung at the Vietnam-Australia Investment Forum held in Hanoi on April 17.

The event was held by the MPI in collaboration with the Australian Embassy in Vietnam and the Australian Trade and Investment Commission (Austrade).

As of March, Australia poured 1.99 billion USD into 593 valid projects in Vietnam, accounting for 0.4% of the country’s total foreign direct investment and ranking 20th out of 143 countries and territories investing in the Southeast Asian nation, mostly in manufacturing and processing, lodging and accommodation, agro-forestry-fisheries, said the FIA.

During 2021-2022, two-way trade rose by roughly 40% to 33 billion AUD, with Australia’s exports to Vietnam surging 50% to 20.5 billion AUD year-on-year. Australia is also assisting Vietnam in coping with climate change and achieving net zero emissions by 2050.

Chung said in the short-term, Vietnam will renew its mindset, fine-tune mechanisms and policies on foreign investment, step up three strategic breakthroughs regarding mechanisms, infrastructure and human resources while propelling development based on sci-tech and innovation.

All policies and regulations are aimed for international standards, he said, adding that Vietnam’s sustainable development and FDI attraction are for the success of businesses, with a win-win approach for all parties.

Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc said both sides need to continue upholding the role and effectiveness of the Vietnam-Australia Economic Partnership Meeting, which is an important channel for economic exchange and cooperation between the two countries, creating favourable conditions for their businesses to operate effectively.

The MPI vows to offer all possible support to foreign investors, including those from Australia, to do business effectively and sustainably in Vietnam, she said.

Senator Don Farrell, Australian Minister for Trade and Tourism, said enhancing cooperation with Vietnam is a priority of the Australian Government, through diversifying trade and investment links and building the Southeast Asia Economic Strategy till 2040. Vietnam brings important trade and investment opportunities in the next decades, he added.

With two in-depth discussions on value chain and investment environment in Vietnam, representatives from the two countries’ businesses and management agencies discussed issues related to agriculture, food, education, logistics, renewable energy and technology.

Since their diplomatic ties were set up 50 years ago, the strategic partnership between Vietnam and Australia has been developing strongly, substantively and effectively in various areas. During 2022-2023, the Australian Government increased its official development assistance to Vietnam by 18%, from 78.9 million AUD to 92.8 million AUD. Two-way trade hit 15.7 billion USD last year, up 26.9% from 2021.

Significant progress has also been seen in education-training, sci-tech, innovation, agriculture and rural development, labour and transportation.