The Australian Government has announced several initiatives to implement recommendations under Invested: Australia’s Southeast Asia Economic Strategy to 2040 (the strategy) to increase two-way trade and investment with Vietnam and the region. For example, a $2 billion Southeast Asia Investment Financing Facility has been established to catalyse investment into the region, and investment Deal Teams have been established, including in Vietnam, to support Australian businesses to secure deals.
Deepening Australian investment into Vietnam is a key recommendation under the strategy and is also a commitment under the Australia-Vietnam Comprehensive Strategic Partnership. To support this, the Australian Embassy in Hanoi and Australian Consulate General in Ho Chi Minh City (HCMC) have been busy implementing recommendations under the strategy. In this mid-year update we highlight an institutional investor mission, technology business exchange, launching of a technology landing pad and activities of the Business Champion for Vietnam.
Investor mission
From 3-4 June the Australian Embassy and Consulate General hosted an institutional investor mission in Vietnam. Fifteen senior representatives from fourteen leading Australian institutional investment institutions, superannuation fund associations and advisory bodies with over AUD$1.6 trillion under management visited Vietnam to explore the investment opportunities.
In HCMC, the delegation met leading fund managers and trusted legal and financial advisors learning about the favourable demographic trends and urbanisation factors driving Vietnam’s economic growth, and the foreign investment regulatory framework. In Hanoi, the delegation met with representatives from the Ministry of Industry and Trade, Ministry of Transport, Ministry of Finance, and the State Securities Commission.
The mission was a great success and the delegation left Vietnam with a better understanding of the investment regulatory frameworks, favourable supply chain shifts, and the investment opportunity to support Vietnam’s future infrastructure and energy needs.
Digital engagement
From 24 to 25 June the Consulate General hosted the first Southeast Asia Business Exchange (SEABX) mission to Vietnam and launched the HCMC technology Landing Pad. The SEABX mission included seventeen representatives from Australian digital technology companies and was led by Australia’s Special Envoy for Southeast Asia, Nicholas Moore AO, the author of the strategy, and Business Champion for Vietnam, Louise Adams.
There is growing demand for fintech, cybersecurity and agtech solutions in Vietnam and sizeable economic opportunities for Australian digital companies. “Australia has the capability to help meet this demand being ranked 2nd in the region and 12th globally for digital readiness” said Louise Adams. “Digital standards, e-commerce and cybersecurity will be key to deepening digital interconnectivity and trade, ensuring inclusive growth benefiting Southeast Asia and Australian businesses out to 2040” said Nicholas Moore AO.
The delegation met with the HCMC People’s Committee and leading technology companies in Vietnam, including VNG, Vietnam’s first unicorn start-up. The mission showcased the digital technology investment opportunities in Vietnam and the success achieved by Australian technology businesses currently in market.
The Landing Pad, launched in HCMC, will provide on-the-ground support for Australian businesses to expand into the Vietnam market and the Mekong region. It will help technology companies to gain market insights, explore expansion strategies, connect with in-market networks and obtain venture capital.
Forging stronger business links
Building upon her previous appointment as Business Champion under the Australia-Vietnam Enhanced Economic Engagement Strategy, Louise Adams has continued the momentum to facilitate stronger business links and investment activity between Australia and Vietnam. She has already undertaken several activities, including raising awareness about opportunities and mentoring Australian businesses keen to expand.
In a recent visit to Vietnam, Louise Adams met with Nguyen Van Hung, Chairman of Becamex Industrial Parks to discuss high-tech manufacturing opportunities for Australian business in Binh Duong Province and it’s ‘smart city’ initiative. Louise visited the Eastern International University (EIU) start-up incubator and Dat Bike. Dat Bike is an e-motorbike startup that is being supported by EIU together with Australian financing to help drive Vietnam’s green energy transition. Louise Adams also met with QLM, an Australian label making and packaging company, that has invested over $4 million USD to establish a new factory Binh Chanh District, Ho Chi Minh City
