Speaking at the Vietnam-Australia Business Forum, which opened in Sydney on Friday afternoon, PM Phuc said that this week witnessed many events related to tightening the Vietnam-Australia relations, especially the establishment of the Strategic Partnership between the two and the recently signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership that opens new horizons for bilateral relations.
The senior Vietnamese leader, who is on an official visit to Australia from February 14-18, stressed that Australia is among the leading trade partners of Vietnam, with the turnover in 2017 reaching US$6.5 billion, up 22% over 2016, and increasing rapidly over time.
Last year, 400,000 Australians came to Vietnam and several new flight routes opened between the two countries. Meanwhile, Vietnam is the fourth biggest source country for international students in Australia, with 30,000 following study programmes in the country and 60,000 graduates.
Vietnam is a trusted destination for Australian businesses to invest in, but it is important to facilitate investment promotion activities to provide information to local businesses, he said.
According to him, many of the Top 500 companies in Australia have not come to Vietnam yet and this fact is not commensurate with the potential and aspiration to develop in the promising Vietnamese market.
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The Vietnam-Australia Business Forum, which opened in Sydney on March 16, attracted over 500 representatives from the business communities of both sides. (Photo: VGP)
Informing the Australian business community at the forum, PM Phuc said that Vietnam is among a group of countries with the highest growth rate in the world, with the growth rate in 2017 at 6.81% and the first quarter in 2018 recording an increase of over 7.41%. The country’s stock market recorded the world's highest growth in 2017.
The size of Vietnam's population brings great purchasing power. The young population structure also increases the appeal to manufacturing and consumer companies, with a rapid increase in the middle class and the rich. GDP per capita is at US$2,000 but purchasing power is equivalent to US$6,000.
Particularly, the business environment in Vietnam has been improving positively and rapidly, reflected in the surge of FDI inflows into the country, with 25,000 projects at a total registered capital of US$320 billion, accounting for 145% of the GDP. FDI in Vietnam reached nearly US$36 billion last year, the highest level in ten years. In addition, improved internet infrastructure with more than 52 million internet users and high mobile connection create even more opportunities for investors.
The PM affirmed his commitment to protecting start-ups, saying that his government operates in a transparent manner in its actions to serve businesses and people. The Government directs economic restructuring at all levels, while adopting preferential tariffs and facilitating hi-tech industries, as well as supporting hi-tech agriculture and businesses investing in rural areas.
Vietnam also facilitates State-owned equitisation to encourage private investment, even in sensitive sectors. This is an opportunity for both sides to win together for mutual benefits, PM Phuc affirmed, adding that the Government is committed to maintaining a stable macroeconomic policy, supporting the economy, and reforming institutions in order to accelerate rapid and sustainable development.
At the forum, PM Phuc witnessed the signing of 18 cooperation agreements between enterprises and agencies of both sides in many fields such as energy, investment promotion, supporting businesses, aviation, maritime transport, agriculture, education, and port services.
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PM Nguyen Xuan Phuc and delegates at the Vietnam-Australia Business Forum witness the signing of 18 cooperation and business agreements between enterprises and agencies of both countries. (Photo: VGP)
