Australia-Vietnam Joint Trade and Economic Cooperation Committee Meeting

Joint Press Conference with Deputy Prime Minister, Tim Fischer, and Vietnam's Minister For Planning And Investment, Dr Tran Xuan Gia
Australia-Vietnam Joint Trade and Economic Cooperation Committee Meeting Being Held In Canberra 8-9 February 1999
9 February 1999

Then we'll have the launch of the Web page, short opening statements and questions.

Just while waiting for the communique copies for signature, I would point out that the very successful fifth meeting of the Australian/Vietnam Joint Trade and Economic Co-operation here in Canberra. I particularly welcome and thank Dr Gia for his contribution and the team from Vietnam.

So we haven't got the big, green folders today. We're very efficient.

I'm told that we should now proceed with the launch of the Web page, AUStrade Web page. This relates to the AUStrade Web page which I'll need to test. Doctor you might like to just swing around and look at the screen and I warn, don't look into the lens because they will blind you for about half a minute. It will just take a moment to come up. It does work. It does not have a Y2K millennium bug in it.

Because the TV lights have come on, it's just pushed it out a bit. The Australian Business Group of Vietnam. It has an enticing door for me to click on and in the process if I can catch the door, I will click on it. Now welcome to the official Website of the Australian Business Group of Vietnam, developed in relation to AUStrade and on the far left hand side you can see a number of very practical hints.

Let's take a look at some of those, probably here on travel tips. So if you're preparing to go to Vietnam, here's a check list, ensure you have those business cards, very importantly; obviously passport, visa, immigration; what to expect at airport and so it goes through a number of practical dimensions. On behalf of the Australian Business Group who made a very big contribution to this Australian/Vietnam J-Tech(?) meeting, I congratulate them on their initiative and Dr Gia, I hope this will build further the linkages between Australia and Vietnam.

The President is here somewhere. Would you like to say a few words just to...?

President, Australian Business Group

This is our official launch. We put this together over the last month with contributions from all of the members of the Australian Business Group in Ho Chi Minh City and Hanoi. We're very proud that the Ho Chi Minh chapter of the Australian Business Group was granted the very first business group licence in Vietnam. So we're number one on the licence list. We're pleased with this.

We have plans to further develop the Website with more information about members. So far we have a hundred and thirty members in Ho Chi Minh City, representing Australian citizens and Australian business groups, Australian companies.

Tim Fischer

Well done. [Applause]

I'll invite His Excellency Dr Gia...We might just manage to click that off so that we won't get caught by the lens light. I welcome again the Minister for Planning and Environment Dr Gia and I would invite him to make an opening statement which will be interpreted formally, and then I will respond and then we will have questions. My friend, Dr Gia.

Dr Tran Xuan Gia

Thank you very much, honourable Deputy Prime Minister, Tim Fischer. The J-Tech meeting this time takes place at a very, very special moment in terms of relations between Australia and Vietnam. Firstly, it takes place after the celebration of twenty five years the two countries have established normal relations. And also it takes place as the relations in terms of economics, in terms of cultures, in science and technology are on a very, very good path between the two countries.

And it also takes place with a background of the Asian financial crisis. That has meant a lot of havoc to a number of countries in the region.

And within those issues, we think that the meeting this time has been a complete success. And we discussed a number of issues to push further the trade relations between the two countries further. We pushed for further investment from Australia into Vietnam and we talked about things, how to make more Australian businesses to be successful in Vietnam.

And during the meeting with the government leaders in Australia, we also talked about the technical co-operation development. We highly appreciate and highly regard assistance from Australia in terms of LD(?) aid for Vietnam. And on behalf of the people of Vietnam and the government of Vietnam, let me thank the people of Australia and the government of Australia for that support.

And we would like to co-operate between Australia, the government of Australia and the government of Vietnam, to fight the Asian financial crisis so that we can sustain the problem that many other countries experience with the Asian financial crisis. And also it is worth to note that Australia and Vietnam are the only two countries in the region recording positive economic growth in 1998.

And on this occasion I would like also to thank ladies and gentlemen of the press who has spread the good relations of the two countries, Vietnam and Australia to the audience in Australia. Thank you very much.

Tim Fischer

Your Excellency, thank you very much for those comments and let me add that the GDP circumstance of Australia and Vietnam is outstanding. Vietnam plus 5.8% against the odds and the expectations applying to 1998; Australia currently plus 5% and in terms of the category of country involved, less than a hundred million, there's not too many economies on the Asia Pacific Rim performing that well. Chinese Taipei, Canada, USA, of course, are much bigger GDP and population economies.

I commend Vietnam on the fact that they are opening up their economy and building a win/win situation which in respect of Australia and Vietnam has seen trade surpass the one billion dollar mark for the first time last year. Exports from Vietnam to Australia are growing at about 30%; exports from Australia to Vietnam at about 60%.

On investment, there's been some resolution of long-standing problems. Companies like Telstra have now been in Vietnam for over ten years and have announced their intention they'll make Hanoi their regional headquarters. Fosters are now operating two breweries in Vietnam and launched their local brand mid-year last year. Southcorp Packaging commenced the construction of a ten million dollar bottle manufacturing plant near Ho Chi Minh City.

Other positive developments are taking place, including the establishment of Norco Tiles Limited, manufacturing facility of ceramic products for the construction and chemical industries.

And I'm delighted to say that they've made real progress at these meetings including, with regard to the dairy industry products from Australia, to resolve a classification problem and I appreciate the particular energy and intervention of the Minister, Dr Gia, to ensure a more level playing field on that matter.

Last night we also discussed matters of economic dimension on a regional basis, and I reiterated our strong support for the accession of Vietnam to the World Trade Organisation with appropriate conditions applying and our welcoming of Vietnam to the APEC deliberations.

At the same time we had a full and frank exchange on areas of difficulties such as in relation to the mining industry, wheat flour, and undertook to further progress these matters. But in the broad it was a very successful and constructive set of meetings including between Dr Gia and my colleague, Foreign Affairs Minister, Alexander Downer. It helps ensure a dynamic framework for the immediate future, and I will be happy to take any questions particularly on these matters, first one or two if we could.

Question

How's the dairy classification problem resolved?

Tim Fischer

Dr Gia might like to add a comment but we had a problem where we were differentiated vis-a-vis New Zealand and put in a category known as G7 related. And agreement has been reached to in fact re-examine this and place us more or less in the same category as New Zealand.

Dr Tran Xuan Gia

At the beginning we classified Australian dairy products on the same quality as that of many of the G7 nations so that and as such we classified the tariff rate for Australian product on the G7 scale.

Upon further examination, we now discover that we should put Australian dairy products on the same level as the New Zealand product and, as such, the government of Vietnam has decided to put Australian dairy products on the same tax scale for import duty as that of New Zealand products.

Tim Fischer

We estimate that change is worth over one million dollars to the Australian dairy industry, and I salute the fact that the Australian dairy industry is now a multibillion dollar exporter to the world; has greatly expanded its export efforts this decade. And the removal of any classification anomaly large or small is a solid step in the right direction.

Any other questions?

Question

Problems with the mining industry?

Tim Fischer

It's quite complex. It relates, as Dr Gia would point out, to the small size of Vietnam in part and therefore a caution with regard to size of tenements for exploration. We have exchanged letters including Michael Mann, Ambassador, listing our specific concerns. We progressed this further last night in the formal plenary session of the J-Tech.

And, from an Australian point of view, what we are trying to do is provide a win/win situation where the Australian mining industry can have confidence about the tax and other regimes applying and continuity so that sovereign risk is minimised and they can go out and find those metals and help Vietnam in the development of those, production of the precious metals and other metals, oil and gas.

Dr Tran Xuan Gia

With regard to the mining issues, we discussed at the J-Tech meeting on how to co-operate to resolve a number of outstanding issues.

I wholeheartedly agree with the comments made by the Honourable Deputy Prime Minister but I just want to add one further comment: Number one is that the mineral law has only been implemented in Vietnam in the past two years. And during the implementation process, we ourselves discovered as well as from the comments by friends like Australia, we discovered a number of inefficiencies in those laws.

During the first quarter of this year, 1999, we will fully re-examine the existing law as well as a number of drafts for those laws so as we can amend those laws or change them. And during this process, we will take fully on board the recommendations put out by our Australian friends in order to revaluate and re-examine our laws.

That are the number of points I would like to add further to the comment made by the Honourable Deputy Prime Minister.

Question

Mr Fischer, does Australia still see the business climate in Vietnam as being difficult? Is it still bureaucratically unpredictable and where would you put Vietnam as an Australian target in terms of the rest of ASEAN. Is it getting an easier place to do business given some of the unfortunate experiences of some Australian corporations?

Tim Fischer

I think there has been genuine improvement in the three years nearly I've been Minister for Trade. I've certainly encountered improvement. I took some, too long to resolve some very minor problems but they were eventually resolved in the last year, be it approved vehicle imports for particular projects held on a wharf for a long period of time, Hyphong(?).

But I acknowledge that there's areas for continued improvement especially in the area of division between regional responsibilities and the central government responsibilities in Hanoi. And we have spoken frankly about this aspect. I am quite up-beat about the trade, investment, tourism - not so much tourism inbound to Australia - but trade and investment prospects associated with Vietnam. And Mr Dobell(?), I would commend the fact that tomorrow I would table the trade outcomes and objectives statement embargoed until this time tomorrow, and chapter 9 deals with Vietnam on page 151 and the full answer to your question will issue with this annual trade statement tomorrow.

Dr Tran Xuan Gia

Thank you the Honourable Deputy Prime Minister for your comment. I would like once again to add a few comments: Australia put Vietnam on a priority country for investment due to a number of considerations. Vietnam has only started to receive foreign direct investment into the country during the last seven years. And as such, our laws and our administrative system are certainly not fully developed.

But the Vietnamese government is always trying to improve the business environment for foreign businesses in Vietnam and we are on track. And we have tried by all means, blessed(?) by all the difficulties we experience, to try to establish a stable economy. And we would try to attract further foreign direct investments into Vietnam by a number of incentive schemes.

And thirdly we are instituting the administrative reform in Vietnam so that the officers at the lower level will comply further with the instructions from the central authorities. And as such, I believe there are good reasons for Australia to put Vietnam on the priority list for investment.

Question - Dr Tim Col Vech (?)

Dr Gia, I was going to ask in which particular areas is Vietnam most interested in getting Australian investment and what are the incentives you referred to to try and attract them?

Dr Tran Xuan Gia

We looked at Australia for Australian expertise in the processing of the agricultural products and as well as the semi-finished goods that are suitable for use in the countries in South East Asia like Vietnam. And we also looked at Australia having a great advantage in the area of mining.

So, in addition to the normal incentive schemes such as land and lower tax rate, we have introduced a number of extra incentives, such as the free tax holiday of eight years to further attract investment into Vietnam.

Question

A question for Dr Gia if that's possible. Is a Ministerial reshuffle in Hanoi about to happen? And is there any truth in rumours that Dr Gia will be appointed Finance Minister?

Dr Tran Xuan Gia

Well about a month ago a lot of journalists have put the rumour that there would be a reshuffle of the Cabinet as well as my position as Minister for the MPI, Ministry of Planning and Investment. But I can categorically assure you that those news are rumours and false.

Tim Fischer

Well played. I think I might handle the same question that way as I hear one coming from the ABC.

Question

This is another one for Dr Gia. I'd just like to ask what your view is on the Autonomy Talks for East Timor and whether you believe self-determination can and should be achieved?

Dr Tran Xuan Gia

With regard to events taking place in other countries, we do look at those events. We pay attention to those events because we would like to have a stable region for the economy to develop. But how to resolve those issues that are taking place in those countries, I believe is the full responsibility for the people of that country and for the government of that country to resolve, not ours. Thank you.

Tim Fischer

Okay, perhaps one more, yes.

Question

A question for you, Mr Fischer: There's a lot of concern in Australia amongst Australians of Vietnamese origin about the conditions that still exist in Vietnam vis-a-vis human rights and in particular persecution of certain religious groups. How big a part does that play in dealing with Vietnam on a trade basis and what discussions have you had in that regard?

Tim Fischer

Over a period of time these matters are raised, most notably by my colleague, the Minister for Foreign Affairs, Alexander Downer, who has more direct jurisdiction. I will, from time to time, also raise human rights concerns and I don't hesitate in doing that. But it is done in the context in my work as Trade Minister, and in balance with all the other matters which I must raise.

I believe there has been progress in Vietnam on the matter of human rights. There will be those who will always have a criticism to offer in that regard and those criticisms and allegations when conveyed to me, I pass on to my colleague, the Minister for Foreign Affairs, Alexander Downer.

Question

Question for Dr Gia. You were talking before about having to reform your administrative, admin. laws and your investment laws. Do you see that these reforms have to be fully finalised for your bid for the WTO to be successful? Or how far do those reforms have to go?

Dr Tran Xuan Gia

We have instituted a program on the reform and we build them into a lot of five years and during the five years we are reforming in terms of the law, reform the law in terms of economic reform, in terms of administrative reform and also in terms of civil reform.

And with regard to the administrative reform, we have three main areas. Number one is to reform the law itself. Number two is to reform the institution itself. And number three is to reform the administratives. With regard to the government institutions reform, we would like to turn it into an efficient, a small one but an efficient one.

And with regard to the third point, or the third area about the reform of the bureaucracy, it takes time and it cannot be done overnight. Number one, we have to retrain those who are working in the bureaucrat. Number two, we have to train a young generation so that they have a good outlook, a wide outlook. And as such, I think we have achieved progress in making our government system to be more compact and more efficient. Thank you.

Tim Fischer

Thank you everybody. There's a photo opportunity in respect of presenting, not presenting this report which is embargoed until tomorrow and I'll subsequently send you but this is the trade statement...

Thank you for coming, everyone.

ENDS