Vietnam – Australia trade connections: new opportunities for businesses in both countries

Bilateral relations enter a new phase of growth

Australia and Vietnam have built diplomatic relations spanning more than half a century and upgraded them to a Comprehensive Strategic Partnership in March 2024. On that foundation, economic cooperation is expanding steadily — from traditional merchandise trade toward investment, services, education, energy, technology, the digital economy and high-value supply chains.

According to Australia's Department of Foreign Affairs and Trade, two-way trade in goods and services between Australia and Vietnam reached approximately AUD 30 billion in 2025. The Australian Government also considers its trade relationship with Vietnam to be one of its fastest-growing bilateral trade relationships in recent years.

Behind the trade figures lies an increasingly diverse market. The two sides hold significant complementary strengths: Australia is strong in resources, agriculture, education, technology, professional services and energy, while Vietnam offers a fast-growing manufacturing base, a large workforce, a strategic location in Southeast Asia and a growing capacity to participate in international supply chains.

This is precisely the foundation for the Vietnam – Australia relationship to move from simple trade exchange toward the formation of long-term business and investment linkages.

New agreements open further space for business

On 11 August, Vietnam and Australia issued joint statements on deepening the Comprehensive Strategic Partnership, enhancing the resilience of their economies and strengthening connectivity in science, technology and innovation. The two countries also advanced agreements in areas such as the digital economy, agriculture, vocational education, healthcare and air transport.

Of particular note for the business community is the agreement to strengthen cooperation on the digital economy, aimed at supporting cross-border trade and e-commerce. The two countries also agreed to promote market access, increase business-to-business connectivity and expand investment cooperation.

Strategic supply-chain sectors were likewise given growing prominence. The joint statement on economic resilience refers to strengthening transparent, diversified and stable supply chains in areas such as critical minerals, semiconductors, clean energy, agriculture and essential inputs.

This shows that the scope of Vietnam – Australia economic cooperation is expanding considerably and is no longer confined to traditional import-export activity.

Air connectivity adds further momentum to trade and investment

Connectivity between the two markets also continues to improve. As part of the visit, the two countries welcomed the revision of the air services arrangement, while a new direct route between Ho Chi Minh City and Western Sydney International Airport was announced, expected to commence operations in January 2027.

For the business community, greater air connectivity serves more than travel needs. Direct routes can facilitate trade, tourism, market research, education, the exchange of experts and the building of partnerships between businesses in the two countries.

Increasingly clear opportunities for Vietnamese and Australian businesses

The most notable aspect for the market lies not in the diplomatic formalities of the visit, but in the cooperation mechanisms taking shape behind the high-level meetings.

Vietnam and Australia are both parties to several major trade frameworks such as the CPTPP, RCEP and AANZFTA. At the same time, the two countries are advancing initiatives to increase market access and connect their private sectors.

This may create further room for businesses in areas such as:

• Construction & infrastructure
• Energy & minerals
• Education & training
• Technology & digital transformation
• Professional services
• Logistics
• Tourism
• Science & innovation

For Vietnamese businesses seeking opportunities in Australia and Australian businesses looking to expand in Vietnam, current developments show the bilateral relationship shifting toward greater substance: from diplomatic ties to market connections, from trade exchange to building supply chains, and from government-level agreements to concrete cooperation opportunities for the private sector.

The Vietnam – Australia relationship is therefore entering a noteworthy phase in which the development of political relations provides the foundation, while trade, investment and business connectivity will be among the key factors shaping the depth of the bilateral relationship in the years ahead.