Australian Prime Minister Anthony Albanese announced on Thursday the elevation of diplomatic ties with Vietnam to the status of a comprehensive strategic partnership, signifying a significant milestone in the bilateral relationship. The move comes alongside plans to initiate annual discussions on minerals, reflecting a broader effort to diversify supply chains away from China.
In a press conference held in Canberra, Prime Minister Albanese emphasized the importance of the enhanced partnership, stating, “Elevating our ties to a comprehensive strategic partnership today places Australia and Vietnam among each other’s significant partners.”
Vietnam, under its “bamboo diplomacy” strategy, has been actively pursuing closer relations with major global powers, and the recent upgrade in ties with Australia underscores its commitment to navigating escalating international tensions.
According to a report from the official Vietnam News Agency, the bilateral partnership signals a notable increase in mutual political trust, reaching unprecedented levels.
The comprehensive strategic partnership aims to facilitate expanded cooperation across various domains, including climate, environment, energy, defense and security, as well as economic engagement and education, as outlined in a joint statement released by both nations.
During the recent engagements, Australian Prime Minister Albanese and his Vietnamese counterpart witnessed the exchange of 12 cooperation agreements spanning sectors such as energy, minerals, agriculture, banking, and finance.
Australia, a significant producer of critical minerals essential for various industries, seeks to bolster collaboration with Vietnam, which boasts substantial untapped mineral deposits. A key component of the partnership involves the establishment of an annual ministerial dialogue on energy and minerals to promote cooperation in critical minerals supply chains.
Vietnam’s abundant rare earth resources present an attractive alternative to China’s dominant position in the sector. Several Australian companies have already shown interest in partnering with Vietnamese entities to capitalize on these resources, including ventures such as the Dong Pao rare earth mine project in Lai Chau province.
Despite the potential for collaboration, some rare earth deals have encountered setbacks, such as the arrest of a Vietnamese rare earth company chairman on charges of tax fraud and smuggling, casting uncertainty on certain projects.
In addition to minerals cooperation, Australia remains a key coal supplier to Vietnam, a country heavily reliant on coal for power generation. Bilateral coal trade between the two nations has witnessed steady growth, with Australia accounting for a significant portion of Vietnam’s coal imports.
As Australia joins the ranks of Vietnam’s top partners, including the United States, China, India, South Korea, Japan, and Russia, the comprehensive strategic partnership signals a deeper commitment to fostering mutual prosperity and cooperation in various strategic areas.
