The nation’s trade surplus with Australia continued to expand in the first quarter of 2014 on a year-on-year basis, as exports posted solid growth of 1.3% tallying in at US$742.8 million, according to the Vietnam Trade Office.
These positive statistics come on the back of record setting growth in the market for 2014 with the nation’s goods and services trade with Australia nearly doubling over the last five years striking US$6.05 billion in 2014.
For 2014 the trade office reports exports to the market down under were estimated at US$3.99 billion and imports at US$2.06 billion, resulting in a trade surplus of US$1.93 billion for the year.
This productive relationship is the result of deep links, which have proliferated since diplomatic relations between the two nations were established in 1973, buttressed further by a free trade pact entered into in 2010.
The trade agreement has been a tremendous boon for Vietnam’s exports as it establishes a free trade bloc encompassing all of ASEAN, Australia and New Zealand, according to the trade office.
It provides for phased in reductions on almost 90% of tariff lines by 2025, which make both nations exports more price competitive in each other’s markets along with commitments to develop regional rules of origin and other investment protections.
Currently Australia is ranked the eighth largest export market for Vietnam and Vietnam has now surpassed Thailand to become Australia’s largest trading market in the ASEAN region.
In 2014 crude oil continued to be Vietnam’s key export product to Australia, accounting for 46% of the total export revenue, with other major export items including mobile phones and seafood.
The Australian market is a promising market providing Vietnam domestic businesses, with numerous opportunities primarily because of its significant dependence on imports for its industrial production and domestic consumption.
Each year, Australia imports from all foreign nations an estimated US$80 billion in goods and services but Vietnam’s share of the market is only roughly US$4 billion, which indicates there is an expansive potential for future growth.
The economic growth and wellbeing of Vietnam in the Australia market depend on how successful we are at marketing and selling— and we plan to expand our efforts in these areas in the future, a representative of the trade office stressed.
Currently the trade office has coordinated with the Vietnam Business Association in Australia to organise ‘A Vietnam Lychee Day in Australia’ with the aim of increasing the visibility of Vietnam lychee.
We have also printed recipes for lychees dishes and produced a short film on Vietnam lychees that is being broadcast throughout the country as part of a pilot program to boost sales.
Having met with much success to date plans are in development to extend the program to other fruits and vegetables, which could potentially result in tens of millions of dollars of revenues for Vietnam’s agriculture industry.
(VOV)
