Sydney (VNA) – Australia and Vietnam are atan important juncture in their economic relations, Kyle Springer, SeniorAnalysist at the West Australia-based Perth USAsia Center, said in a recentinterview with the Vietnam News Agency on the new report entitled “A Path toVietnam: Opportunities and Market Insights for Australian Business”.

Both countries are members in three major free tradeagreements, namely AANZFTA, CPTPP, and now RCEP, Springer said, adding thatthis is an incredibly robust framework for Australian and Vietnamese businessesto work with.

He further noted that AANZFTA this year locked in finaltariff reduction commitments, CPTPP provides strong investment protections, andRCEP will facilitate the movement of value-added goods throughout the region.“Understandably, Australian business will examine the risks and count thepotential cost of doing business in Vietnam, but the important thing to getacross is how these trade agreements such as CPTPP and RCEP can help businessmanage and price the risk,” he said.

Agreeing with the report produced by Asia Society and theAustralian APEC Study Centre as saying that Vietnam and Australia are certainlynatural partners, Springer said Vietnam has long recognised Australia as animportant economic and strategic partner while Australia responded and quicklybecame one of the most successful western countries in forging ties withVietnam.

“Vietnam has emerged as a leader in ASEAN and has alsosupported the completion of RCEP and CPTPP alongside Australia. This is thekind of leadership Australia seeks to support in the region.”

He noted that one powerful insight for business that thereport highlights is the need to assess the business environmentprovince-by-province and the need to develop strategies for engagement at aprovincial level. “This is why the state of Western Australia recently signed aMemorandum of Understanding (MoU) with the province of Ba Ria-Vung Tau inSeptember.”

This comes on the back of successful business ventures inthe province, most recently by Austal shipbuilding. 

He went on to say that in support of this MoU, The PerthUSAsia Centre will next year build a project to develop how Western Australiaand Ba Ria-Vung Tau can continue to bolster meaningful economic and socialties./.