Vietnam–Australia Trade Relations Enter New Phase with MoU signed on FTA Synergy

Introduction

The Vietnam–Australia trade relationship is entering a decisive new stage. On November 5, 2025, both nations formalized a memorandum of understanding (MoU) on “FTA Synergy,” signalling a shift from transactional trade growth toward institutional collaboration and long-term economic alignment. This development builds on the foundation of the Comprehensive Strategic Partnership (CSP) announced in March 2024, which elevated the bilateral relationship to the highest diplomatic tier. The CSP and the MoU together aim to create a synchronized, structured, and sustainable economic ecosystem, where free trade agreements (FTAs) are not just signed, but strategically utilized to deliver real-world benefits for businesses and consumers.

According to the Vietnam import data and the Australia export data, the total value of Vietnam imports from Australia reached $7.57 billion in 2024. According to the Vietnam export data and Vietnam customs data, the total value of Vietnam exports to Australia accounted for $6.42 billion in 2024. The total value of the Vietnam-Australia trade reached $14.10 billion in 2024-25. Due to both nations' resolve to increase the bilateral trade to $20 billion, trade between Australia and Vietnam increased by 2.3% in 2024. 

While Vietnam's biggest exports to Australia were broadcasting equipment, followed by textiles and footwear, Australia's top exports to Vietnam were coal, iron and steel, and wheat. For the first five months of 2025, Vietnam had a trade surplus with Australia; however, due to the difficulties facing the global economy, demand for Australian raw materials decreased. Vietnam is Australia's 10th-largest trading partner, whereas Australia is Vietnam's 7th-largest trade partner, as per the global trade data. This milestone marks a new phase in the bilateral Vietnam-Australia trade relations, opening up opportunities for enhanced collaboration and mutual benefits.

The MoU on FTA Synergy: What It Means

The newly signed MoU for Vietnam-Australia trade exchange focuses on maximizing the benefits of existing FTAs that both countries are party to, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and the ASEAN–Australia–New Zealand Free Trade Area (AANZFTA).

Key objectives of the MoU:

1. Enhancing FTA utilization rates: Many businesses, particularly small and medium enterprises (SMEs), still underuse FTA benefits due to complex rules of origin, documentation, and a lack of awareness. The MoU seeks to address this through technical assistance, training, and digital platforms.

2. Creating value-chain ecosystems: The focus shifts from mere trade in goods to integrating firms across both economies into shared value chains, particularly in advanced manufacturing, agriculture, and clean energy.

3. Improving trade facilitation: Streamlining customs procedures, harmonizing standards, and promoting digital trade certification are central to boosting efficiency.

4. Encouraging public–private collaboration: The MoU promotes collaboration between governments, business chambers, and industry associations to improve export-readiness.

5. Supporting diversification: Vietnam is aiming to diversify exports beyond traditional Asian markets, while Australia seeks to reduce reliance on a few major partners, notably China, by deepening trade with ASEAN economies.

This marks a qualitative transformation: Vietnam and Australia are not just trading more; they are redefining how they trade, with greater integration, higher value addition, and stronger institutional coordination.

Bilateral Trade Overview: 2024–25 Data Snapshot

Trade between Vietnam and Australia has grown steadily over the past decade, and 2024–25 represents another milestone year.

Overall Trade Volume

• Two-way trade in 2024 surpassed USD 14.1 billion, according to Vietnam’s Ministry of Industry and Trade.

• Australian data puts the total two-way goods and services trade at around USD 28.8 billion in 2024, reflecting a broader definition including services and investments.

• In the first half of 2025, total bilateral trade reached USD 6.8 billion, with Vietnam exporting USD 3.1 billion and importing USD 3.7 billion.

• The Vietnam Customs Department reports that trade between Vietnam and Australia reached over 10.16 billion USD in the first nine months of 2025, a decrease of 6.32% from the same period in 2024.

While these figures vary due to measurement methodologies, the overall direction is clear: the trade relationship is robust and expanding, even amid global uncertainty.

Top Goods Vietnam Imports From Australia: What Does  Australia Exports to Vietnam ?

Vietnam's imports from Australia cover a wide range of top goods, showcasing the strong trade relationship between the two countries. Some of the key items that Vietnam imports from Australia include coal, iron ore, beef, wheat, and copper ores. These goods are fundamental for Vietnam's economy and demonstrate the diverse nature of its imports from Australia. The top 10 products that Vietnam imports from Australia, as per the Vietnam-Australia trade data and Vietnam shipment data for 2024-25, include: 

1. Mineral fuels and oils (HS code 27): $2.70 billion

Mineral fuels and oils are one of the top imports from Australia to Vietnam, with a significant value of $2.70 billion. These products are essential for Vietnam's energy needs and play a crucial role in the country's industrial development.

2. Ores, slag, and ash (HS code 26): $1.26 billion

Australia is known for its rich natural resources, and ores, slag, and ash are among the key exports to Vietnam. With a value of $1.26 billion, these products are used in various industries in Vietnam, including metal production and construction.

3. Cotton (HS code 52): $653.37 million

Cotton is another important import from Australia to Vietnam, with a value of $653.37 million, as per the customs data on Vietnam cotton imports from Australia by HS code. This raw material is essential for Vietnam's textile industry, which is a significant contributor to the country's economy.

4. Cereals (HS code 10): $434.63 million

Cereals are essential commodities that Vietnam imports from Australia, with a value of $434.63 million. These products are used in the food industry and play a vital role in ensuring food security in Vietnam.

5. Aluminum and articles thereof (HS code 76): $428.45 million

Australia is a major producer of aluminum, and Vietnam imports a significant amount of aluminum and articles thereof, totaling $428.45 million. These products are used in various sectors, including construction and manufacturing.

6. Copper and articles thereof (HS code 74): $372.74 million

Copper and articles thereof are essential imports from Australia to Vietnam, with a value of $372.74 million. Copper is a versatile metal used in various industries, including electronics and construction.

7. Zinc and articles thereof (HS code 79): $214.53 million

Zinc and articles thereof are also among the top imports from Australia to Vietnam, with a value of $214.53 million. These products are vital for Vietnam's manufacturing sector and are used in the production of various goods.

8. Live animals (HS code 01): $173.94 million

Live animals are another significant import from Australia to Vietnam, with a total value of $173.94 million. These animals are used for various purposes, including food production and agriculture.

9. Meat and edible meat offal (HS code 02): $170.37 million

Meat and edible meat offal are essential imports from Australia to Vietnam, with a value of $170.37 million. These products are in high demand in Vietnam and play a crucial role in the country's food industry.

10. Iron and steel (HS code 72): $158.48 million

Iron and steel are important imports from Australia to Vietnam, with a total value of $158.48 million. These products are used in various industries, including construction and manufacturing.

Top Products Vietnam Exports to Australia: What Does Vietnam Export to Australia?

Vietnam's exports to Australia encompass a diverse range of products, reflecting the strong trade relations between the two nations. Some of the top products that Vietnam exports to Australia include electronics, footwear, furniture, textiles, and seafood. These products not only showcase Vietnam's manufacturing prowess but also underline the country's competitiveness in the global market. The leading goods that Vietnam exports to Australia, as per the Vietnam export shipment data for 2024-25, include: 

1. Electrical machinery and equipment (HS code 85): $2.04 billion

Electrical machinery and equipment are the top products that Vietnam exports to Australia. These goods include everything from electrical appliances to communication equipment. With a total export value of $2.04 billion, this category is a crucial component of Vietnam's trade with Australia.

2. Mineral fuels and oils (HS code 27): $550.16 million

Mineral fuels and oils are another significant export from Vietnam to Australia. With an export value of $550.16 million, these products play a vital role in meeting Australia's energy needs.

3. Nuclear reactors and machinery (HS code 84): $519 million

Vietnam also exports nuclear reactors and machinery to Australia, with a total export value of $519 million. These products are essential for various industries in Australia, including power generation and manufacturing.

4. Footwear (HS code 64): $412.41 million

Footwear is a popular export item from Vietnam to Australia, with an export value of $412.41 million. Vietnamese footwear products are known for their quality and affordability, making them a favorite among Australian consumers.

5. Articles of apparel, knitted (HS code 61): $296.83 million

Vietnam also exports knitted apparel to Australia, with a total export value of $296.83 million. These products include a wide range of clothing items, from t-shirts to sweaters, and are highly sought after in the Australian market.

6. Articles of apparel, not-knitted (HS code 62): $259.57 million

In addition to knitted apparel, Vietnam also exports non-knitted apparel to Australia, with an export value of $259.57 million. These products include items such as jackets, pants, and dresses, catering to the diverse fashion preferences of Australian consumers.

7. Fish and seafood (HS code 03): $225.28 million

The seafood industry is another key export sector for Vietnam, with fish and seafood products generating $225.28 million in exports to Australia. Vietnamese seafood is known for its freshness and quality, making it a popular choice in Australian markets.

8. Furniture, bedding, and mattresses (HS code 94): $200.27 million

Vietnam also exports furniture, bedding, and mattresses to Australia, with a total export value of $200.27 million, as per the data on Vietnam furniture exports to Australia. These products are known for their durability and craftsmanship, making them a favorite among Australian homeowners and businesses.

9. Iron and steel (HS code 72): $197.69 million

Iron and steel products are essential raw materials for various industries, and Vietnam exports these products to Australia with an export value of $197.69 million. These products are crucial for construction, manufacturing, and infrastructure development in Australia.

10. Articles of iron or steel (HS code 73): $186.74 million

Lastly, Vietnam also exports articles of iron or steel to Australia, with a total export value of $186.74 million. These products include a wide range of items, from construction materials to machinery parts, supporting Australia's industrial and manufacturing sectors.

Vietnam-Australia Bilateral Trade Data in the Last 10 Years

Vietnam’s Exports to Australia: Data and Trends

Vietnam’s exports to Australia have become more diversified and technologically sophisticated. The growth of 2024 was driven by a mix of traditional and new sectors.

Export Value and Growth

• First five months of 2024: Vietnam exported goods worth USD 622.4 million to Australia, marking a 31.1% increase year-on-year.

• May 2024 alone: Exports rose 66.2% year-on-year, one of the fastest monthly growth rates in recent years.

Observations

• Manufactured goods dominate: Machinery and electronics now account for nearly 50% of Vietnam’s exports to Australia, a dramatic shift from a decade ago when garments and seafood led the list.

• Agricultural exports are surging: Coffee exports more than doubled, and fruits, nuts, and vegetables showed consistent double-digit growth, indicating rising demand for Vietnamese agri-products in Australia.

• Diversification beyond commodities: The growing presence of mid- and high-tech goods signals Vietnam’s move up the global value chain.

This diversification is exactly what the MoU seeks to accelerate, enabling Vietnamese firms to connect to Australian buyers, investors, and technology providers more effectively.

Australia’s Exports to Vietnam: Commodities & Shifting Demand

Australia remains a major supplier of raw materials and industrial inputs to Vietnam. However, the composition and volume of these exports are changing.

Import Trends (Vietnam’s Perspective)

• Total imports from Australia in the first five months of 2024 declined slightly.

• Key imports — coal, cotton, wheat, iron, and steel, all saw volume reductions due to a mix of lower global prices, inventory adjustments, and shifts in Vietnam’s domestic production patterns.

Long-Term Growth

• Over 2014–2023, Vietnam’s imports from Australia grew at an average compound annual growth rate (CAGR) of 17%, driven by energy, food, and raw materials.

• However, 2024–25 suggests a potential transition from resource-based trade toward technology and investment-driven trade, in line with the MoU’s objectives.

Investment Flows and Services Trade

The trade relationship is increasingly supported by two-way investment and services flows, especially in education, renewable energy, and technology.

Investment Snapshot (2024)

• Australian investment in Vietnam: Approximately USD 2.1 billion across 631 projects, ranking Australia among Vietnam’s top 10 foreign investors.

• Vietnamese investment in Australia: Around USD 551 million across nearly 100 projects, concentrated in food processing, real estate, and services.

Education and Services

• More than 36,000 Vietnamese students studied in Australia in 2024, making Vietnam the fourth-largest source of international students in the country.

• Education, financial services, IT, and tourism continue to form strong links between the two economies.

• The MoU envisions cooperation in digital trade, green energy, and trade services, expanding beyond traditional goods trade.

Structural Shifts and FTA Leverage

The Vietnam–Australia trade relationship benefits from three overlapping FTAs, CPTPP, RCEP, and AANZFTA, which collectively offer one of the most liberalized trade environments in the Indo-Pacific.

Current FTA Utilization Gaps

Despite favorable tariff schedules, many exporters underutilize FTA preferences. Reasons include:

• Complex rules of origin documentation.

• Limited awareness among SMEs.

• Non-tariff barriers, such as differing product standards.

• Lack of digital customs infrastructure.

The MoU on FTA synergy aims to close this gap by:

• Launching joint capacity-building programs for exporters.

• Standardizing customs certification processes.

• Promoting digital trade documentation.

• Establishing an “FTA ecosystem” that links businesses, regulators, and trade providers.

Strategic Benefits

• Vietnam: Gains from technology transfer, training, and improved export readiness. The MoU also helps Vietnam diversify away from overdependence on East Asian markets.

• Australia: Strengthens its economic foothold in ASEAN, using Vietnam as a manufacturing and trade hub to access wider regional markets.

Sectoral Deep Dive: Where the Growth Is

1. Manufacturing and Machinery

Vietnam’s machinery exports to Australia surged over 120% in 2024, reflecting integration into electronics and mechanical equipment supply chains. Many Australian firms now source intermediate goods and components from Vietnam to diversify their supply risk away from China.

2. Agriculture and Food Processing

Vietnamese agricultural exports to Australia, including coffee, fruit, and seafood, have grown steadily, helped by rising consumer demand for diverse Asian food products. Australia’s stringent standards push Vietnamese exporters toward higher quality and certification, improving competitiveness globally.

3. Energy and Minerals

While Australia’s exports of raw minerals declined in 2024, both governments are exploring clean energy collaboration, particularly in lithium, solar, wind, and hydrogen. A bilateral framework on green minerals supply chains is being developed to meet both countries’ climate transition goals.

4. Education, Tourism, and Services

Australia remains a top education destination for Vietnamese students, while Vietnam is emerging as a fast-growing tourism market for Australian travelers. The MoU’s focus on services trade could lead to joint ventures in edtech, fintech, and creative industries.

Strategic Implications of the MoU on Vietnam-Australia Trade

For Vietnam

• Higher-value integration: By linking with Australian industries, Vietnam can upgrade its position from a low-cost assembler to a value-adding manufacturer.

• Export diversification: Reduced dependence on the US and China markets.

• Sustainability and standards: Australia’s market pushes Vietnamese exporters to adopt higher sustainability and traceability standards.

• Resilience: Stronger partnerships with developed markets improve Vietnam’s economic resilience amid global supply-chain shifts.

For Australia

• Market diversification: Reduces overreliance on traditional East Asian export destinations.

• Access to ASEAN growth: Vietnam’s 100 million population and position in ASEAN make it a strategic bridge for Australia’s regional engagement.

• Supply-chain resilience: Vietnam offers a competitive and stable base for Australian firms seeking to diversify production away from China.

• Investment potential: Expanding opportunities in energy transition, education, and technology align with Australia’s Southeast Asia Economic Strategy to 2040.

Challenges and Risks

1. Trade imbalance: If commodity imports from Australia continue to fall while Vietnamese exports rise, trade asymmetry could create policy tensions, as per the Vietnam trade balance data. 

2. Technical standards: Vietnamese firms must meet Australia’s high product and safety standards, often stricter than those in the US or EU.

3. Underused FTAs: Without active support and awareness campaigns, many SMEs may still miss out on preferential access.

4. Investment lag: Despite strong trade growth, investment levels remain modest relative to potential.

5. Global volatility: Commodity price swings, geopolitical tensions, and trade disruptions could impact bilateral trade momentum.

The Road Ahead: Forecasts and Strategic Path

Trade Targets

Both governments have expressed a shared goal to raise two-way trade to USD 20 billion annually and double investment flows within the next few years. Given current growth rates, this is achievable by 2028, provided momentum continues.

Key Growth Drivers

• FTA optimization: Increasing utilization rates across CPTPP and RCEP.

• Green economy cooperation: Investments in renewable energy, sustainable agriculture, and the circular economy.

• Digital trade platforms: Use of blockchain and electronic certification to streamline trade documentation.

• Education and human capital exchange: Joint training and skill-development programs.

• Infrastructure partnerships: Australia’s Export Finance Agency has signed new agreements with Vietnam’s Development Bank to finance infrastructure and trade projects.

Long-Term Outlook

The evolution of the Vietnam–Australia relationship is part of a larger Indo-Pacific economic realignment. As global supply chains diversify, Vietnam’s manufacturing base and Australia’s resource and service strengths complement each other naturally. If executed effectively, the FTA Synergy MoU could transform the two economies into mutually reinforcing partners, combining Vietnam’s dynamism and labor competitiveness with Australia’s technology, capital, and standards.

Conclusion and Final Verdict

The signing of the Vietnam–Australia MoU on FTA Synergy represents more than a bureaucratic step; it is a strategic pivot toward deeper, more integrated, & value-driven cooperation. The data from 2024–25 show that trade between the two nations is not only growing but evolving in quality. Vietnam is exporting more sophisticated goods and expanding its agricultural footprint, while Australia is recalibrating its role from resource supplier to strategic investor and technology partner.

Looking ahead, the success of this new phase will depend on execution, turning the MoU’s institutional commitments into tangible outcomes: streamlined trade, increased FTA usage, expanded investment, and stronger industry linkages. If both sides deliver, Vietnam and Australia are on track to establish one of the most resilient and mutually beneficial trade relationships in the Indo-Pacific, built not just on commodities but on collaboration, innovation, and shared prosperity.

We hope that you liked our insightful and data-driven blog report on Vietnam-Australia trade relations 2025. To search live Vietnam import-export data by country, visit VietnamExportdata. Contact us at info@tradeimex.in for customized trade reports, verified databases, and market insights. 

Read more about:

Top Smart Watch Suppliers in Vietnam