Potential export market
Vietnam and Australia have a lot of room to increase bilateral trade, promote the export and import of strategic goods into each other's markets. Regarding trade cooperation, according to data from the General Statistics Office, bilateral trade turnover has recovered positively, in which export turnover has grown strongly (up 31.1% in the first 5 months of the year). Notably, in May 2024, Vietnam had a trade surplus of 54.6 million USD; while the trade deficit in the first 5 months of the year also decreased sharply (-66.1%), showing that trade relations are becoming more balanced.
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| Event promoting Vietnamese lychees in Perth, Western Australia. Photo: VNA |
Over the past time, the two countries have effectively maintained over 20 bilateral cooperation mechanisms with many positive results. Economic and trade cooperation has been maintained stably, with two-way trade turnover in 2023 reaching nearly 14 billion USD. The two countries are currently among each other's top 10 trade partners.
Notably, the effectiveness of free trade agreements, especially the three important FTAs (CPTPP, RCEP, AANZFTA) when Vietnam and Australia are both members, has special tariff incentives when the tax rate on most exported goods to Australia has reached 0%.
Vietnamese products are rich and diverse. Some Vietnamese products have reached the market and affirmed their brand and quality, such as shrimp, basa fish, cashew nuts, pepper, etc.; other products have also begun to affirm their quality and import value to Australia is increasing.
On the government side, Vietnam always has policies to support businesses to promote exports such as exempting export taxes, allowing access to low-interest business capital, information, policies, etc. The Ministry of Industry and Trade and its affiliated units (Asia-Africa Market Department, Trade Promotion Agency, Import-Export Department, etc.) also provide maximum support for resources, creating favorable conditions for export activities, promoting economic growth and enhancing Vietnam's competitiveness in the global market.
According to Minister of Industry and Trade Nguyen Hong Dien, the results of investment and trade cooperation between Vietnam and Australia are very valuable, but still modest compared to the potential and cooperation space between the two countries. Vietnam and Australia have a lot of room to increase bilateral trade, promote the import and export of strategic goods into each other's markets. Therefore, Vietnamese enterprises need to exploit the benefits from free trade agreements to rebalance the trade balance.
Because the trade potential of both sides has not been fully exploited, in the coming time, the Ministry of Industry and Trade will continue to assign the Trade Promotion Department to carry out trade promotion activities and promote exports to the Australian market. This will help increase bilateral import and export activities, expected to reach a growth rate of about 5-10% next year.
Creating a runway for Vietnamese agricultural products to penetrate deeper
Highly appreciating the prospects of Vietnamese agricultural products in the land of kangaroos, the representative of the Vietnamese Trade Office in Australia said that agricultural products such as coffee, rice, spices, fruits, etc. of Vietnam have great potential. Meanwhile, agricultural products between the two countries do not overlap.
Not only that, Vietnam and Australia also have advantages in terms of convenient trade routes, both by sea and air. In particular, the fact that both sides participate in many bilateral and multilateral trade agreements brings significant tariff incentives, helping Vietnamese agricultural products increase their competitiveness in the Australian market, contributing to increasing the competitive advantage of Vietnamese agricultural products in the land of kangaroos.
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| Vietnamese products need to be upgraded to meet the limitations of the Australian market. Illustrative photo. |
However, the representative of the Vietnam Trade Office in Australia also frankly admitted the limitations that Vietnamese enterprises need to overcome soon if they want to penetrate the Australian market because the Australian market has very strict regulations and technical barriers, some standards are even higher than those of the United States and the EU; meanwhile, Vietnam is not Australia's only FTA partner...
“ Vietnam's production and export situation in late 2023 and early 2024 will also face many difficulties, with a lack of orders, leading to an impact on the demand for imported raw materials, including imported goods from Australia, causing import turnover to decrease compared to the same period last year, ” said a representative of the Vietnam Trade Office in Australia.
Therefore, to open the door for Vietnamese agricultural products to enter Australia, according to the representative of the Vietnam Trade Office in Australia, in the coming time, the trade office will actively coordinate and support the Trade Promotion Department and a number of units and functional agencies to learn and verify information related to the capacity and reputation of enterprises, individuals and economic organizations in Australia that have trading activities, connections and business with individuals and enterprises in Vietnam, thereby contributing to protecting the rights and legitimate interests of Vietnamese enterprises in international trade.
At the same time, deploy regular tasks of the Trade Office such as grasping market information, proactively researching the market, regularly promoting trade, enhancing information search, supporting businesses in finding partners, continuously updating, providing new information quickly and promptly on information channels, online platforms, applying technology of the Trade Office, promptly conveying to agencies, businesses, and associations to proactively grasp.
To promote trade promotion activities and export promotion to the Australian market, according to information from the Trade Promotion Department, in 2024, the National Trade Promotion Program will implement two projects in the Australian market, including: Project "Organizing participation in the International Sourcing Expo Australia in combination with surveying the Australian textile and garment market" chaired by the Vietnam Textile and Apparel Association, expected to be implemented in November 2024 in Melbourne, Australia; Project "Organizing a trade delegation to Australia and New Zealand" chaired by the Vietnam Rubber Association, expected to be implemented in the fourth quarter of 2024 in Australia and New Zealand.
In addition, the Trade Promotion Agency will closely coordinate with the Vietnam Trade Office in Australia in providing updated information on the Australian market situation; opportunities and challenges when exporting to this market. At the same time, it will make recommendations to support Vietnamese enterprises to enhance their capacity, competitiveness and brand to promote the export of Vietnamese products and goods to the Australian market.
Source: https://congthuong.vn/co-hoi-tiem-nang-cho-hang-viet-xuat-khau-vao-thi-truong-australia-341545.html
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