9-3-2024 (HANOI) In a significant move to deepen bilateral relations, Australian Prime Minister Anthony Albanese has announced that the country is raising its ties with Vietnam to the level of a comprehensive strategic partnership. This upgraded partnership will pave the way for enhanced cooperation across a wide range of areas, including climate, environment, energy, defence, security, economic engagement, and education.
One of the key highlights of this partnership is the establishment of an annual ministerial dialogue on energy and minerals, aimed at driving cooperation in the energy and resources sectors, with a particular emphasis on critical minerals supply chains. This dialogue holds immense importance as both nations seek to strengthen their collaboration in these crucial domains.
During Albanese’s visit to Vietnam, he and his counterpart, Prime Minister Pham Minh Chinh, witnessed the exchange of 12 cooperation documents spanning various sectors such as energy, minerals, agriculture, banking, and finance. These agreements underscore the commitment of both nations to broadening their partnership and exploring new avenues of cooperation.
The elevation of ties to a comprehensive strategic partnership marks another successful stride in Vietnam’s “bamboo diplomacy,” which has seen the Communist-ruled nation enhance its relations with global powers in recent years. This strategic approach aims to navigate the complexities of rising global tensions while maintaining a balanced and pragmatic foreign policy.
Australia has been a significant coal supplier to Vietnam, a country heavily reliant on fossil fuels for power generation. However, the partnership’s focus on critical minerals cooperation signifies a shift towards more sustainable and future-oriented industries. Australia, as a major producer of critical minerals used in various technologies, from smartphones to automobiles, can play a crucial role in supporting Vietnam’s industrial and technological development.
Conversely, Vietnam is said to possess the world’s second-largest deposits of rare earth oxides, estimated at around 22 million tons. This abundance of rare earth resources presents opportunities for joint exploration, mining, and processing initiatives, further strengthening the critical minerals supply chain between the two nations.
The strengthened partnership also holds significance in the context of global trade dynamics. Australia’s coal shipments to Vietnam rose by 17% last year, reaching 20 million metric tons and accounting for 39% of Vietnam’s total coal imports. This highlights the existing economic ties between the two countries and the potential for further growth in the energy and resources sectors.
