Australia, Vietnam deepen defence engagement as supply chain risks grow
The countries agree to support the free flow of essential trade and to do more to counter transnational organised crime
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[CANBERRA] Australia and Vietnam agreed to deepen military cooperation and support the free flow of essential trade as the two nations’ leaders met in Canberra on Tuesday (Aug 11), with both sides expressing concern over policies that threaten to disrupt global supply chains.
Australian Prime Minister Anthony Albanese and Vietnam’s top leader To Lam agreed to “further strengthen defence and security engagement”, according to a joint statement released by Australia.
They also vowed to do more to counter transnational organised crime and people smuggling.
In Lam’s first trip to the country as party chief and president, the two sides pledged to increase trade and investment, and support “resilient supply chains in areas such as critical minerals, semiconductors, clean energy”, according to a separate statement.
The two nations “expressed concern” over the situation the South China Sea and reaffirmed the importance of maintaining peace, security and stability, as well as freedom of navigation and overflight.
They called for disputes to be resolved peacefully through legal and diplomatic processes, without the threat or use of force.
Australia and Vietnam have expanded maritime security cooperation in recent years as they confront increasing Chinese aggression in the contested waters of the South China Sea.
Following a visit to Danang in April, HMAS Toowoomba trained with Vietnam People’s Navy ship 275 off the Vietnamese coast, including search-and-rescue and ship-handling exercises.
Among the agreements reached, Vietnam will reinstate access for Australian kangaroo and deer meat and Melbourne’s RMIT University will deepen its presence in Vietnam, with plans for a new Hanoi campus and expanded operations in Ho Chi Minh City.
Two-way trade between the two nations currently stands at over US$14 billion, according to the Vietnamese government, while Australia is also a major provider of official development assistance, supporting infrastructure and climate change resilience.
Vietnam and Australia established diplomatic relations in 1973 and upgraded ties to a comprehensive strategic partnership in March 2024.
To mark the visit, on Monday, Vietnamese budget carrier Vietjet Aviation JSC announced a new direct service between Ho Chi Minh City and Western Sydney, scheduled to start from January 2027 with two round-trip services per week.
From Australia, Lam heads to New Zealand, the first visit by a Vietnamese president since 2007, where he is expected to focus on trade, investment, technology, agriculture and other areas. BLOOMBERG
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