CPTPP helps boost Vietnam-Australia trade, investment cooperation

Last year, two-way trade between both sides hit $12.4 billion for the first time—up by more than 49 per cent compared with that of 2020. The value of shipments to Australia reached more than $4.45 billion, a year-on-year (YoY) rise of 23 per cent.

Vietnam spent nearly $8 billion in importing goods from Australia, up nearly 70 per cent against 2020’s figure.

Sharp increases were witnessed in Vietnam’s export of various agricultural and industrial products to Australia, for example 84 per cent in coffee, 51 per cent in aquatic products, 41 per cent in rubber and 26 per cent in electric cables. Notably, the shipments of iron and steel skyrocketed by more than 500 per cent YoY.

Vietnam and Australia are both members of at least three free trade agreements, namely ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), CPTPP and the Regional Economic Comprehensive Economic Partnership (RCEP).

Meanwhile, the country is buying more and more essential materials, such as coal, iron ore, metals, cotton, wheat and animal feed, from Australia. In particular, Vietnam's import value of coal from Australia in Q1 surged by 176 per cent YoY and that of cotton shot up by 333 per cent, a news agency reported.

The CPTPP also boosts investment. By the end of 2021, there were about 550 Australian investment projects in Vietnam with a total value of nearly $2 billion, ranking 19th among foreign investors in the country.

Fibre2Fashion News Desk (DS)