Building Solid Foundation for Vietnam-Australia Business Ties

VCCI Secretary General Tran Thi Lan Anh receives a delegation from AusCham, led by President Sam Conroy

Vietnam has become an increasingly attractive destination for Australian investors, supported by its growing industrial base, youthful workforce and favorable policies. Australia is currently ranked among the top 20 foreign investors in Vietnam. Both leaders agreed there is significant potential for deeper collaboration, especially in education, logistics and foreign direct investment (FDI).

However, they also recognized logistic challenges as a key barrier. “While the foundations of bilateral relations are strong, we need to address issues such as integrating Australian companies into Vietnam’s supply chains,” said Lan Anh. Sam Conroy said that while Vietnam is viewed as a growing economic hub, logistics and regulatory barriers, especially outside major cities like Ho Chi Minh City and Hanoi, pose challenges for Australian businesses.

Overcoming logistics barriers, expanding FDI

Although Vietnam has improved its transport and logistics systems, gaps remain, especially outside industrial centers. Conroy emphasized the need to address logistic bottlenecks that Australian companies encounter when expanding operations. "Logistic inefficiencies can erode business competitiveness, especially in sectors like manufacturing where efficient supply chains are critical," he said.

Lan Anh underscored the potential for Vietnam to become a logistics hub in the region and the need for targeted investments and partnerships, particularly with countries like Australia that have expertise in supply chain management. "We must ensure that our logistics framework can meet the demands of both domestic and international businesses," she said. Both leaders advocated for more joint ventures between Australian and Vietnamese firms to modernize Vietnam’s logistics sector, believing these collaborations could enhance the Vietnam-Australia partnership.

The discussion highlighted the importance of FDI in driving economic growth for both countries. Australia ranks as the 20th largest foreign investor in Vietnam, but Lan Anh noted this could improve with better policies. "To attract more Australian investors, we need a business-friendly climate and simplified regulations," she said. The Vietnamese government is committed to enhancing the ease of doing business for foreign investors bringing capital, technology and expertise.

Conroy agreed, noting that Australian firms bring not only investment capital but also world-class expertise in areas like automation, sustainable manufacturing and digital transformation. These are crucial for Vietnam’s long-term economic development. “Vietnamese companies can greatly benefit from increased FDI, particularly through knowledge and technology transfer,” he said.

Education and skills development: A pillar of cooperation

Another key area of cooperation between the two nations is education and vocational training. Australia has long been a top destination for Vietnamese students pursuing higher education, and this trend continues to grow. In recent years, Australian institutions have sought partnerships with Vietnamese universities and vocational schools, aiming to align training programs with the demands of the modern workforce.

Lan Anh emphasized that education plays an important role in strengthening ties between the two countries. “It’s not just about sending students to study abroad; it’s about developing a skilled workforce that can drive the future of both economies,” she said. She praised the success of Vietnamese students in Australia and looked forward to more collaborative programs that benefit both nations.

Conroy pointed out the growing demand for vocational training in fields like logistics, IT and high-tech manufacturing. “As Vietnam’s economy continues to expand and diversify, there’s an urgent need for skills development in industries critical to its long-term competitiveness,” he said. Australian institutions, he noted, are well-positioned to provide the vocational training and certifications that will help Vietnamese workers succeed in these high-demand sectors.

Both leaders agreed that public-private partnerships are important to address skill gaps and drive workforce development. Lan Anh stressed that the private sector has a key role in shaping Vietnam’s future workforce. “By partnering with foreign institutions, we can ensure our workers have the skills needed to compete in global markets,” she said.

Lan Anh and Conroy reaffirmed the importance of continued dialogue and collaboration between the two business communities. While logistical challenges and regulatory barriers remain, both leaders are optimistic about the future of Vietnam-Australia business relations.

“Australia and Vietnam share a bright future. As we navigate the complexities of global business, our cooperation will only become more important. We are committed to working together for a prosperous and sustainable future for both nations,” said Conroy.