Vietnam-Northern Territory trade-investment ties yet to tap full potential: minister

Trade and investment ties between Australia’s Northern Territory and Vietnam have not matched existing potential, says Minister of Planning and Investment Nguyen Chi Dung.

He was addressing a Vietnam-Australia business routable on Saturday in Darwin, capital of the Northern Territory. The event was held on the sidelines of the fourth Australia-Vietnam Economic Partnership Meeting.

The meeting was an important pillar in the comprehensive strategic partnership between Vietnam and Australia, which was established, consolidated, and upgraded in March 2024 when Prime Minister Pham Minh Chinh visited Australia, he said.

Trade ties between Vietnam and Australia, particularly the Northern Territory, have yet to meet their potential, the minister stressed.

Currently, two-way trade turnover between Vietnam and Australia is modest at $14 billion, he noted, emphasizing the need for further promotion of economic cooperation relationship between the two sides.

Do Van Su, deputy director of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, called on the business community of both countries to have frank discussions about investment cooperation opportunities.

Vietnamese officials at the roundtable answered queries from Vietnamese businesses seeking to invest in Australia in general and the Northern Territory in particular. They also suggested that the Northern Territory clarify details about the launch of a direct flight between Vietnam and Darwin; labor cooperation; and investment in agricultural, industrial, and logistics projects.

Welcoming the Vietnamese delegation, Brian O’Gallagher, deputy speaker of the Northern Territory Assembly, said the territory is always keen on the Vietnamese business community increasing their investments. Northern Territory authorities will facilitate Vietnamese businesses in investing and operating effectively towards boosting the economic-trade ties between the two countries, he said.

VAFIE facilitates Vietnam-Northern Territory cooperation

Addressing the event, Nguyen Ngoc My, vice chairman of the Vietnam's Association of Foreign Invested Enterprises (VAFIE) and chairman of the Northern Territory-Vietnam Business Council (NTVBC), said the two countries have a long history of economic, trade, investment, development assistance, security and defense cooperation. Vietnam and Australia celebrated the 50th anniversary of bilateral diplomatic ties last year.

The steady progress is seen in the advancing of bilateral ties from a strategic partnership in 2018 to a strategic economic partnership in 2021 and further elevation to a comprehensive strategic partnership in 2024.

Now is the best time to promote investment collaboration, My said.

He noted that the NTVBC and the VAFIE signed a cooperation agreement in September 2021 and has since then promoted ties between Vietnam and the Northern Territory, especially through business collaboration.

In the coming time, the association will continue to further promote implementation of the Vietnam-Northern Australia Trade and Investment Cooperation Strategy, considering it one of the most important activities for the VAFIE in the new term, he added.

He also noted that many Vietnamese leaders have visited the Northern Territory recently.

Hau A Lenh, Minister and Chairman of the Committee for Ethnic Minority Affairs (CEMA), made an official visit to the Northern Territory in November 2022. The current visit of Minister of Planning and Investment Nguyen Chi Dung to the territory on the sidelines of the Australia-Vietnam Economic Partnership Meeting is another milestone.

My also said that a number of large Vietnamese corporations like Vabis Group, Hoa Phat Group, TH Group, and Vingroup have expressed their interest in investing in the territory. However, in order to attain sustainable growth, it is necessary to encourage small businesses to participate in the supply chain to form a supporting industrial ecosystem, he said.

My further mentioned the need to mobilize and utilize the business system of overseas Vietnamese living in the Northern Territory of Australia, in particular, and in Australia in general to participate in investment cooperation.

Hayley Richards, CEO of the Northern Territory Department of Trade, Business, and Asian Relations, hoped that Minister Dung’s visit would provide an impetus for further growth in economic, trade and investment cooperation between Vietnam and Australia in general and with the Northern Territory in particular.

The Northern Territory will do its best to help the business communities of both sides expand investment cooperation, especially facilitating Vietnamese enterprises to invest, she affirmed.