Southeast Asia Economic Strategy to 2040 – Vietnam End of Year Update

One-year Anniversary of Invested

September marked the one anniversary of Invested: Australia’s Southeast Asia Economic Strategy to 2040  (Invested). To celebrate the occasion, Prime Minister Pham Minh Chinh joined Prime Minister Anthony Albanese as guest of honour in the margins of the ASEAN Business and Investment Summit in Vientiane, Laos. The event showcased progress made over the past year and renewed Australia’s ambition to deepen economic engagement in Southeast Asia and interests in a safe, stable and prosperous region. PM Chinh commended progress made in implementing Invested detailed in Advancing Implementation and emphasised Australia’s closeness with ASEAN as its first Dialogue Partner and one of five Comprehensive Strategic Partners.

Significant progress has been made to deliver recommendations under Invested in Vietnam and across Southeast Asia with the appointment of 10 Business Champions across the region; more than 220 Australian businesses have participated in 10 missions to 7 countries; investment deals team have been rolled out supported by a $2 billion Southeast Asia Investment Financing Facility to catalyse greater Australian investment; and 2 new regional technology landing pads have established in Jakarta and Ho Chi Minh City.

Deepening Trade and Investment

Vietnam and Australian engagement on trade and investment continues to strengthen. The elevation of diplomatic relations to the level of Comprehensive Strategic Partnership in March this year together with Invested provides a strong platform to deepen trade and investment.

During the first 10 months of 2024, two-way trade in goods was AUD 18.8 billion, up 4.5% year on year. There continues to be solid export volumes to Australia for Vietnamese agricultural products such as coffee, seafood, cashew and fruits while Australia’s leading agricultural commodity exports to Vietnam include cotton, wheat, malt, beef, live cattle, fruit and dairy products continue to perform well. New market access was negotiated for Vietnamese passionfruit to Australia and Australian plums and honey to Vietnam. Education services and tourism remains a standout services sector. By the end of September 2024, Australia had invested in 662 foreign direct investment (FDI) projects in Vietnam worth A$3.02 billion. There has been strong interest from Australian investors to explore opportunities in the agriculture and food, resources, green energy transitions, and education and skills sectors.  

Net Zero Challenge 2024

The Australian Consulate-General in Ho Chi Minh City sponsored the Net Zero Challenge alongside Vietnamese venture capital firm Touchstone Partners and Singapore’s Temasek Foundation. The Net Zero Challenge is a global climate-tech innovation competition with a focus on Vietnam. Australian activated carbon company Bygen was one of three winners (from around 500 applications) and will use VND 5 billion in prize money to conduct a pilot project in Vietnam, establishing a strong foundation for successful scaling in the future. Bygen’s cutting-edge technology is transforming the production of sustainable activated carbon from agricultural waste. This innovation solution cuts production costs by 60% and is carbon-negative, which is a game-changer for both sustainability and industry.

Raising Awareness

From 25 to 27 September, an education and greener skills delegation taking part in the Australia Southeast Asia Business Exchange Mission was in Hanoi and Hai Phong to build partnerships in education and training, with a focus on advancing green economy goals and achieving net-zero targets. The delegation included leaders, professors, and industry experts from 17 leading Australian universities and training institutions, along with representatives from four Australian states and territories.

The delegation attended the MOET Education Partnership and Investment Conference in Hai Phong to learn about Vietnam's latest transnational education policies. They also participated in the Australia-Vietnam Partnerships: Innovation, Education and Training towards a Green Economy Forum, engaging in detailed discussions with Vietnamese universities and prominent businesses to help equip Vietnamese graduates with the necessary education, skills and knowledge to achieve net-zero objectives.

Digital Engagement

The Vietnam Landing Pad facilitated an Australian technology and innovation delegation to Hanoi and Hai Phong from 26-28 November. The delegation visited VSV Capital, FPT Software, Selex Motors, and National Innovation Center where they exchanged knowledge, explored innovative business practices, and established long-term connections within Vietnam’s thriving tech ecosystem. The delegation participated in the Austrade hosted Australia-Vietnam Business & Innovation Partnership Forum at Techfest Vietnam 2024. The Forum brought together approximately 100 Vietnamese enterprises, industry associations, tech leaders, experts, and investors, highlighting Australia’s digital technology capabilities and encouraging collaboration. As Vietnam advances its dual transformation strategy under the Prime Minister’s direction, the Forum was praised for establishing a foundational platform to enhance business, innovation, and technology exchanges between Australia and Vietnam.

Building capability

ASEAN-Australia Young Leaders Forum

The Consulate General in Ho Chi Minh City hosted the 2024 ASEAN-Australia Young Leaders Forum from 29 November to 1 December. Fifty young leaders from across the region and Australia gathered together with artists, scientists, technologists, entrepreneurs, researchers, businesspeople and policymakers to hear about how tech can lead us to a more inclusive, connected future.  Australia’s Business Champion to Vietnam, Ms Louise Adams, delivered a keynote speech sharing her journey deepening business linkages between Australia and Vietnam. In November, Louise Adams was appointed as member of the inaugural ASEAN-Australia Centre Advisory Board. The ASEAN-Australia Centre will strengthen people-to-people links, increase ties with national cultural institutions, support emerging leaders, drive business engagement, and deepen Australia’s trade and investment links under Invested.

Offshore Wind Symposium

From 11 to 12 December, the Embassy together with Geoscience Australia and the Vietnam Agency of the Sea and Islands held an offshore wind symposium in Bac Lieu province. The symposium brought together leading Australian and Vietnamese offshore wind experts and developers to exchange knowledge to support sector development.  Australia’s Corio Generation shared its experience as a global offshore wind developer assisting countries in the region to transform their economies with clean, green and reliable offshore wind power.  Corio Generation has partnered with EVNGENCO to submit a pilot project proposal for a 1 GW offshore wind project in Binh Thuan Province.