Vietnam – Australia: Unprecedented events in history

Editor's Note:Prime Minister Nguyen Xuan Phuc has just successfully concludedVisiting Australia and attending the ASEAN-Australia Special Summit.Looking back on the visit, Vietnam Weekly had a conversation with Dr. Tran Viet Thai, Deputy Director of the Institute for Strategic Diplomatic Studies, Diplomatic Academy of Vietnam.

According to Mr. Tran Viet Thai, the Prime Minister's visit this time has many new aspects, both bilaterally and multilaterally. Firstly, there is the ASEAN-Australia Special Summit, an unprecedented event, the first time Australia has hosted one. Secondly, in the bilateral channel, there is the upgrading of relations with Australia to a Strategic Partnership. It is necessary to view the Vietnam-Australia relationship, as well as the ASEAN-Australia multilateral relationship, within a larger, long-term context.

For the ASEAN-Australia Special Summit, arguably the most important point expressed in the joint statement was to deepen bilateral relations and foster substantive cooperation. Historically, this relationship has been more of a dialogue-based one, with cooperation primarily limited to Australia providing one-sided assistance.

Australia clearly recognizes the position of Vietnam and ASEAN.

According to him, what prompted Australia to proactively upgrade relations at this time?

First, it must be said that the landscape of the Asia-Pacific region is currently undergoing significant changes. ASEAN, particularly Vietnam, is emerging as a new regional center with great potential and dynamism. Vietnam is becoming an attractive destination for many businesses, with its innovative policies, multilateralism, diversification, and international integration being very favorable.

But that's not all; more importantly, both ASEAN and Vietnam are key areas where major powers are looking to establish relationships. Most recently, South Korea launched its new "Southern Policy," and President Moon Jae-in is about to visit Vietnam. The geopolitical concept of "Indo-Pacific" was first included in the US National Security Strategy under President Donald Trump and has been actively promoted by Japanese Prime Minister Shinzo Abe in recent years.

It can be said that Australia's proactive approach to upgrading relations stems from its recognition of the potential and the shifting positions and roles of ASEAN countries.

Previously, they looked to China a great deal – a huge market with enormous potential. That remains true now, but in recent years, many Western governments in general, and Australia in particular, have become increasingly disappointed with China's policies. China's business conditions for foreign companies are becoming increasingly restrictive, making it more difficult to do business. And the political environment is also becoming increasingly volatile, with changes that are unfavorable to business, especially regulations, for example, regarding the internet and taxes.

Meanwhile, Vietnam, like ASEAN, is increasingly opening up and integrating. Some Australian businesses have shared with me that it's time to look beyond China.

According to him, what is the focus of upgrading this relationship?

The joint statement contains a lot of content, but it can be broadly summarized into three key areas.

The firstIt's about sharing a vision of common interests and values. Currently, Australia and Vietnam increasingly share overlapping and intertwined interests. Their positions and viewpoints are becoming closer; for example, Vietnam and ASEAN both desire an open, peaceful region based on international cooperation, and Australia shares this desire as well. It can be said that all three parties—Vietnam, Australia, and ASEAN—share increasingly similar viewpoints, their interests overlap, and their policy approaches align more and more.

MondayThis involves strengthening political and diplomatic relations to foster greater trust. The first step in upgrading relations is to increase high-level exchanges. Alongside this, mechanisms such as mutual consultations and enhanced understanding of each other's policies will increase, as will dialogue, consultations, and exchanges at all levels. From there, frameworks will open up to allow mechanisms, such as local authorities, to cooperate more smoothly and effectively.

TuesdayIn terms of economic and trade relations, both sides are committed to facilitating and promoting economic, trade, investment, and tourism development. We expect a wave of Australian businesses to invest in Vietnam. Australia has particular advantages in agriculture (such as dairy farming and milk processing technology) and mining (raw materials for production such as iron ore and coal, which Vietnam needs).

An important point here is that Australia is a member of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). The CPTPP stipulates rules of origin for economic and trade relations between member countries. Promoting trade with Australia will be more advantageous than buying from countries outside the bloc, as the goods will be considered to originate within the bloc. This will result in preferential tariffs, depending on the industry, but these will be minimized according to general regulations.

With this upgraded relationship, and with the regulations within both bilateral and ASEAN frameworks, and in the upcoming CPTPP, what can we expect?

The firstThis represents a shift in economic, trade, investment, and even tourism relations towards strengthening bilateral ties and benefiting both sides. Of course, upgrading relations and signing agreements is one thing, but implementation requires a process.

Next pointPeople-to-people exchanges are crucial. The strategic partnership framework does not only encompass state-to-state cooperation. The ASEAN community-building process has been people-centered, and the future of Vietnam-Australia relations will follow the same. Currently, with Vietnam increasingly opening up and integrating into the global community, more and more Vietnamese people are traveling abroad, and we are also receiving a growing influx of investment, tourism, and visits to relatives. People-to-people exchanges between Vietnam and Australia will certainly be strengthened.

First, let's talk about education. Australia is one of Vietnam's major education markets. With Australia easing restrictions and offering more scholarships to ASEAN countries, opportunities for Vietnamese students to study abroad will certainly increase. However, we need to focus strongly on technical fields, especially technology, and emerging sectors where Australia has strengths, such as biopharmaceuticals, agricultural technology, etc.

Tourism has also been boosted, compounded by Australia's inclusion in the list of countries whose citizens are eligible for the pilot program of issuing e-visas under Resolution 124 of the Vietnamese Government.

Next are the mechanisms for localities to promote cooperation, as each locality has its own strengths; for example, the eastern region of Australia has strengths in the exploitation and processing of seafood.

With a framework in place, trust will increase.

Could you elaborate a little on the key areas of defense cooperation in the upcoming strategic partnership between the two countries?

Vietnam-Australia defense and security cooperation is currently an important component and will continue to progress. First and foremost is the strengthening of training. Australia has been supporting Vietnam in English language training, and long-term training cooperation has begun, including officer training, but the focus must be on maritime security and peacekeeping. Australia has many strengths, but in reality, Vietnam-Australia cooperation has not been extensive due to the differences in their political systems, including the way the Australian military operates, its weaponry, and its strategic thinking…

"Strategic relations" will provide a framework for the armed forces of the two countries to move closer together, thus becoming more beneficial and expanding to areas such as naval, intelligence, and air force exchanges. With a framework in place, trust will increase. Of course, we will also have to adjust our cooperation with Australia in particular, and other countries in general. We are integrating into the global economy, and many things require gradual adaptation; we cannot do everything immediately or rush into it.

One aspect that has attracted much attention is Australia's role between ASEAN and China.

China is a factor in Australia's closer ties with ASEAN. While the rise of China risks impacting the region and altering the regional order, this is a concern for Australia, it's not the only issue. Australia's greatest worry isn't China, but rather the "erratic" nature of Donald Trump's policies. This concerns a vital ally and core interest of Australia.

It's important to emphasize that Australia's efforts to strengthen relations with ASEAN are not aimed at countering China. If Australia revealed such intentions, ASEAN would immediately distance itself. ASEAN needs Australia because it requires an open region and does not want any single nation to dominate it. ASEAN needs an open balance based on international law and norms. Australia is a factor that can help ASEAN achieve this.

Australia's move to ASEAN stems from the visible benefits I've analyzed above. The ASEAN market is huge, and it's integrating and becoming the world's fourth largest economy in 20 years.

In short, there are several factors at play here. Firstly, ASEAN itself is inherently attractive. Secondly, the situation is changing too rapidly, and the US is causing concern for Australia. China is only a third or fourth-party factor.

Given this context, what is our message? It is to "walk on two legs," through the ASEAN multilateral channel and through bilateral channels. Vietnam's goal is to work with other countries to build an open, peaceful, stable, and prosperous Southeast Asia based on international law and norms. Australia fully shares this goal, whether through bilateral or multilateral channels, which aligns with Vietnam's national interests and its foreign policy, security, and defense strategies.

Thank you for sharing.