Milestones in Vietnam - Australia relations
Vietnam and Australia established diplomatic ties on February 26, 1973, laying the foundation for a robust partnership with more diverse benefits. Over the decades, the relationship has evolved from a Comprehensive Partnership in 2009 to an Enhanced Comprehensive Partnership in 2015, and a Strategic Partnership in 2018. The biggest leap came in March 2024 when Vietnamese Prime Minister Pham Minh Chinh’s visit to Australia culminated in the agreement to elevate ties to a Comprehensive Strategic Partnership.
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Australian Governor-General Sam Mostyn and her spouse Simeon Beckett |
The March 2024 joint statement outlined six major orientations, including deepening political trust and diplomacy; enhancing economic, trade, and investment ties; advancing cooperation in sci-tech, innovation, digital transformation, and green transition; strengthening collaboration in culture, education, environment, and climate change; expanding people-to-people exchanges; and fostering mutual understanding in national defense-security toward peace, stability, cooperation and development in the region and the world.
Both nations pledged to develop the partnership on the basis of respect for each other’s international law, sovereignty, independence, territorial integrity and political systems. The upgrade of ties to the Comprehensive Strategic Partnership, after more than 50 years of diplomatic ties, was described as a natural and necessary step.
Vietnamese Ambassador to Australia Pham Hung Tam highlighted the rapid expansion of cooperation across all six priority areas since the March 2024 upgrade. In October 2024, the two countries signed a 2024-2027 action plan, with 96% of the 180 agreed actions either completed or on track. Key achievements include the inaugural ministerial-level Security Dialogue in October 2024, enhanced collaboration in United Nations peacekeeping, a more balanced trade relationship, and a surge in tourism, with nearly 500,000 Australians visiting Vietnam in 2024.
The partnership is supported by over 20 bilateral mechanisms, including annual meetings between PMs, foreign and defense ministers, as well as the Economic Partnership Conference and subnational cooperation forums. Notable recent engagements include the third annual PMs’ meeting in June 2023, the seventh Foreign Ministers’ Meeting in August 2025, the first Ministerial Dialogue on Trade in March 2024, the fourth Economic Partnership Ministers’ Meeting in October 2024, the first Ministerial Security Dialogue in October 2024, the 10th Strategic Dialogue at the deputy foreign and defense minister level in August 2025, and the eighth Defense Policy Dialogue in August 2025, among others.
Parliamentary cooperation has also flourished, both within bilateral and multilateral frameworks. Vietnam and Australia continue to work closely at global and regional forums such as the U.N., Asia-Pacific Economic Cooperation (APEC) and ASEAN.
Increasingly complementary economic, trade ties
Vietnam and Australia are forging increasingly complementary economic and trade ties, with Australia ranking as Vietnam’s seventh largest trade partner and Vietnam as Australia’s 10th. Two-way trade has surged in recent years, surpassing 12.4 billion USD in 2021, up 49.4% from 2020 despite the pandemic. The momentum continued with 15.6 billion USD in 2022, 13.8 billion USD in 2023, and 14.1 billion USD in 2024. In the first seven months of 2025, it stood at 7.9 billion USD.
Both nations benefit from frameworks like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), which offer tariff advantages and broader market access. Vietnamese exports such as shrimp, basa fish, and cashew nuts have gained traction in Australia, while Vietnam relies on Australia’s resources and fuels. The economies are highly complementary, with Vietnam excelling in electronics, machinery, apparel, and footwear, and Australia strong in mining and energy.
Agricultural cooperation is expanding. Australia has granted access to Vietnamese lychee, mango, dragon fruit, passion fruit and frozen shrimp, while Vietnam has opened its market to seven types of Australian fruits, including oranges, mandarins, cherries, grapes, peaches, nectarines and plums. Negotiations for grapefruit exports are underway.
As of mid-2025, Australia invested in 864 projects worth 3.38 billion USD, focusing on manufacturing, information and communications, and hospitality services. Conversely, Vietnam had 93 investment projects valued at more than 551 million USD in Australia, ranking 11th among Vietnam’s 83 outbound investment destinations. Key sectors include agriculture, forestry, wholesale and retail trade, and manufacturing.
On official development assistance (ODA), Australia has long maintained stable ODA for Vietnam. Since diplomatic ties began over 50 years ago, Australia has provided a cumulative 3 billion AUD (1.97 billion USD). Australia remains one of Vietnam’s largest bilateral donors of non-refundable ODA. In March 2025, Canberra announced 96.6 million AUD in ODA for Vietnam for fiscal year 2025–2026, following 95.7 million AUD for 2024-2025, 95.1 million AUD for 2023-2024, and 92.8 million AUD for 2022-2023.
Sci-tech cooperation is also a highlight. Both sides are effectively following the second phase of the Aus4Innovation program, while the Vietnamese Ministry of Science and Technology and Australia’s Commonwealth Scientific and Industrial Research Organization (CSIRO) signed a new five-year Memorandum of Understanding on sci-tech, and innovation.
Looking ahead, Vietnam and Australia see vast potential for cooperation in hi-tech industries, innovation, clean energy, mining, infrastructure, telecommunications, services, tourism, and high-tech agriculture. During Australian Foreign Minister Penny Wong’s recent official visit to Vietnam in August, PM Pham Minh Chinh stressed the “ample room” for bilateral collaboration. He called for the effective implementation of their Comprehensive Strategic Partnership action plan, regular dialogues, and 20 billion USD in two-way trade, particularly through market access and trade facilitation.
For her part, Minister Wong reaffirmed Australia’s commitment to advancing the Comprehensive Strategic Partnership, including in national defense-security, sci-tech, digital transformation, and education, and human resource development through ODA and investment funds.
Beyond trade and aid, education remains a pillar of bilateral ties. Vietnam is Australia’s fifth-largest source of international students, with nearly 37,700 enrolled. Universities are deepening academic links, highlighted by RMIT University’s launch of the Australia - Vietnam Policy Institute in March 2024 and the University of Sydney’s establishment of the Sydney Vietnam Institute in June 2024.
People-to-people ties are also reinforced through twinning relationships, such as Ho Chi Minh City - Queensland and Da Nang - Gold Coast. To date, 15 such partnerships exist. Four Australian states, Queensland, New South Wales, Victoria, and Western Australia, have opened trade and investment offices in Vietnam, as part of their Southeast Asia engagement strategies, with Vietnam a priority.
The Vietnamese community in Australia, numbering around 375,000, is the fifth largest ethnic community in the country. Remarkably, Vietnamese ranks among the four most widely spoken languages in Australia, after English, Chinese, and Arabic, reflecting both cultural affinity and mutual respect.
To deepen these bonds, Vietnamese Ambassador to Australia Pham Hung Tam stressed the importance of enhancing people-to-people exchanges, particularly in culture, tourism, sports, and education-training. He advocated for supporting Vietnamese students in Australia and encouraging more Australians to experience Vietnam through initiatives like the New Colombo Plan.
Underscoring the significance of the Australian Governor-General’s upcoming visit to Vietnam, Tam noted that the trip aligns with the Vietnamese Party and State’s foreign policy of valuing ties with Pacific partners, particularly Australia, a key regional player and an increasingly active and effective partner of Vietnam.
From Australia’s perspective, the visit reflects its consistent policy of valuing and giving high priority to stronger engagement with Southeast Asia, including Vietnam.
During her stay, the Governor-General is scheduled to meet high-ranking Vietnamese leaders, attend the opening of the Vietnam - Australia Forum 2025, inaugurate the Australia - Vietnam Policy Institute, and engage with Vietnam’s peacekeeping officers.
Tam believed that the visit would further consolidate strategic trust between the two nations while contributing to regional peace, stability, and development.
Source: VNA