August 29, 2024
HANOI – Australia is proud of the mutual support with Việt Nam as they face modern challenges in an intertwined future, said Australian Senate President Sue Lines at the Việt Nam-Australia Forum 2024 on Wednesday morning.
Following the success of the first forum between the two countries in 2023, this year’s event centred on enhancing economic engagement and a shared vision for prosperity between the two countries.
“Global issues have local effects, and our leaders need to be able to grapple with these,” she said.
Among these challenges is the pace of change, evident in the need for immediate response to climate change, navigating constantly evolving changes in the global economy, and harnessing digital transformation and emerging technologies, she noted.
“These challenges need a focus on a less-frequently-spoken-about issue that is a core element I have observed in my long career in public service – good governance, and the importance of equality and including a range of voices to its achievement,” said the Australian leader as she underlined female representation in leadership roles.
In this context, the Việt Nam-Australia Centre, which began in 2022 on the campus of Hồ Chí Minh National Academy of Politics (HCMA) in Hà Nội, allows people of the two countries to share meaningful knowledge exchange and expertise and seeks to tackle common challenges.
Gathering more than 600 delegates including policymakers, Government officials and industry experts, the forum on Wednesday was jointly organised by the HCMA and the Embassy of Australia in Việt Nam, on the occasion of the Australian Senate President’s visit.
It also marks an important milestone following the elevation of their bilateral relations to a Comprehensive Strategic Partnership in March, as well as Việt Nam’s upcoming 40th anniversary of Đổi Mới (Renewal).
Addressing the forum in his opening remarks, HCMA Director Dr Nguyễn Xuân Thắng said: “From being the first partners to becoming companions and two close friends, Việt Nam and Australia have been writing a ‘new story’ which is remarkable, profound and a typical example of a friendship that has grown out of sincerity, trust, goodwill, knowledge and mutual respect as well as a shared vision and confidence of a stable, peaceful and prosperous region.”
Growth prospects
The Việt Nam-Australia Comprehensive Strategic Partnership has opened a new era in which the private sector has the opportunity to leverage clear initiatives and targets to succeed and thrive between the two countries, according to the Australian Chamber of Commerce in Việt Nam (AusCham) Vice President, Natalie Fairlie.
In addition to the increasing business prospects, AusCham also recognised Việt Nam’s ongoing commitment to streamline its regulatory framework.
“It is progressing and it is supporting FDI (foreign direct investment) to enhance its effectiveness by streamlining those regulatory requirements,” said Fairlie during the panel discussion.
Sharing the same perspective, Việt Nam Chamber of Commerce and Industry (VCCI) Vice President Nguyễn Quang Vinh agreed that FDI businesses can perceive Việt Nam’s efforts in reforming administrative procedures and business environment for a more open, competitive conditions compared to others in the region.
“Multiple ministries and departments, including the Ministry of Planning and Investment, the Ministry of Finance, the State Bank of Vietnam as well as local authorities have been coordinating to perfect the policy frameworks and improve the business and investment environment,” said Vinh.
VCCI also plays an active role in the Provincial Accountability and Performance Index (PAPI) for business condition improvement at both the national and local levels, and Australia also lends a hand to this initiative.
However, despite the impressive economic performance and progress, achieving the high-income status by 2045 remains a very ambitious target for Việt Nam, noted Andrea Coppola, World Bank’s lead economist for the country.
World Bank estimates that Việt Nam’s economy will grow by 6.1 per cent in 2024 and further accelerate next year at 6.5 per cent, which will position the country among the fastest-growing economies in East Asia and at the global level.
However, the bank’s forecast model also shows that under the current condition, if no significant reforms are passed, growth is expected to decelerate to an average of 5.2 per cent between 2025 and 2030, then down to 4.7 between 2031 and 2040, then to 4.1 per cent between 2041 and 2045.
“Việt Nam is doing very well today, and actually it might achieve the middle-income status before 2030.
“But going forward, it will need to do even more, grow even faster and find ways to accelerate productivity growth while continue increasing both private and public investment,” said Coppola.
Among the six pillars of cooperation in the Việt Nam-Australia Comprehensive Strategic Partnership, three concern economic engagement, according to the panel at the event.
The Oceanian country is also launching its investment deal team hubs in Singapore, Jakarta (Indonesia) and HCM City, which experts say is opening up new trade opportunities in addition to the focus area of political and security cooperation between Việt Nam and Australia.