Thanks to a number of multilateral free trade agreements, trade between Vietnam and Australia has increased recently, reaching US$15.7 billion in 2022, making Australia the seventh trade partner of Vietnam. Of the total, Vietnam’s exports hit US$5.6 billion, up 26.2 percent year on year.
A report from the Vietnam Textile and Garment Group (Vinatex) said that last year, Vietnam shipped US$44.5 billion worth of garment and textile products abroad, a rise of about 11 percent year on year, becoming the third largest exporter of the product in the world after China and Bangladesh.
Along with garments, the country also exported over US$2.5 billion worth of fabric, nearly US$5 billion worth of yarn, and US$1.5 billion worth of garment accessories in the year.
In 2022, Vietnam spent US$3.3 billion on importing 1.7 million tonnes of cotton from 11 countries, with Australia standing in the third position.
According to Austrade, Vietnam’s cotton imports from Australia rose from AUD78 million (US$50.76 million) in 2020 to AUD1.69 billion in 2022, mostly thanks to competitive prices and geographical distance.
Data from the Ministry of Industry and Trade showed that Vietnam and Australia are members of at least three common free trade agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The pact has helped promote Vietnam’s exports to Australia, especially farm produce.
Currently, the three FTAs supporting Australia’s cotton exports to Vietnam are the ASEAN-Australia, New Zealand FTA (AANZFTA), the CPTPP, and the Regional Comprehensive Economic Partnership (RCEP). They enable Australia’s raw cotton to enjoy preferential tax rates in Vietnam.
Rob Cairns, Export Marketing Consultant of the Australian Cotton Shippers Association (ACSA), said that the Australian industry wishes to build deeper relations with the local textile and apparel industry as demand is anticipated to grow in the coming years.
Source: sggp.org.vn