Boosting trade and investment links with Vietnam
Joint media release: Simon Crean, Minister for Trade and Anthony Byrne, Parliamentary Secretary for Trade
25 June 2010
The Minister for Trade, Simon Crean, is today hosting the 9th Australia-Vietnam Joint Trade and Economic Cooperation Committee (JTECC) in Melbourne as Australia continues to strengthen trade and investment ties with Vietnam.
The meeting will be co-chaired by Mr Crean and Vietnam's Minister of Planning and Investment, Mr Vo Hong Phuc. Vice Minister Le Duong Quang from Vietnam's Ministry for Industry and Trade will also participate, along with an accompanying business delegation. The Parliamentary Secretary Anthony Byrne will also attend.
"The relationship between Australia and Vietnam continues on an upward trajectory and this visit and the accompanying business delegation is proof of this," Mr Crean said.
As part of the visit, the Australian Government will witness the signing of a new US$100 million export deal between an Australia's Environmental Clean Technologies (ETC) and Vietnam's Thang Long Investment and Commercial Joint Stock Company (TinCom).
"This is a good news story about Australia's cleaner coal technology being used to transform brown coal into cleaner, black coal equivalent energy pellets."
"It is about Australian technology being used to deliver a more environmentally sensitive energy solution to the people of Vietnam – a small but important contribution to the global effort to reduce carbon emissions," Mr Crean said.
"Vietnam is buying the Australian resource but also, importantly, investing in the Australian technology to lower the carbon footprint."
Under the agreement ETC will provide a licence for its technology to enable brown coal to be transformed into environmentally cleaner black coal equivalent pellets. At the same time TinCom will provide up to US$100 million in first stage equity finance, representing one of the largest investments by Vietnam in Australia.
Mr Byrne said that Vietnam has identified human resources and infrastructure as two breakthrough areas to move to industrial country status by 2020.
"Australian businesses can play a critical role in these areas. Australia is already the leading supplier of educational services to Vietnam, with significant potential for further growth," Mr Byrne said.
"As Vietnam chairs ASEAN and the East Asia Summit in 2010, our engagement is all the more critical," Mr Byrne said.
Two-way services between Australian Vietnam trade grew 15 per cent in 2009, driven by Australia's education exports. Total two-way trade in 2009 was $6 billion.
Both sides recognise the enormous benefits flowing from of the ASEAN-Australia-New Zealand FTA, and urge businesses to take up the new opportunities afforded by enhanced access to a dynamic market of over 600 million consumers.
Under AANZFTA, 90 per cent of the tariff lines faced by Australian exporters to Vietnam will be tariff free by 2020, with most of the liberalisation beginning in the next few years.
Mr Crean will also welcome progress made in the Trans-Pacific Partnership (TPP) negotiations and reaffirm Australia's support for Vietnam becoming a full member of the negotiations.
Bilateral discussions are expected to focus on education and training, infrastructure, and resources and environment.
Media inquiries
- Trade Minister's Office: (02) 6277 7420
- Departmental Media Liaison: (02) 6261 1555