Econ
Vietnamese goods access Australian market
Australian customers are more open to imported goods, especially for agricultural products, garment & textile.
According to Hanoi Promotion Agency, exporting potential for garment & textile, shoes and fashion clothes of Vietnam to this market is very big.
High potential
Ministry of Trade & Industry said, Australia is one of the big import countries in the world, in which the majority are products for manufacturing and consumption. Only in 2016, import value of Australia from Asia – Pacific countries is 135.5 billion USD. Besides, as stated in the ASEAN – Australia – New Zealand Free Trade Agreement (AANZFTA) signed in 2009, until 2018, Australia will cut 90% of import tariffs and by 2020, 100% tariffs will be reduced to 0%.
Deputy Head of Asia – Pacific Market Department (Ministry of Trade & Industry) Nguyen Phuc Nam said, Australia has in increasing important role in the trade relationship with Vietnam, as this is an potential export market for Vietnamese goods such as fisheries, agricultural, electronics, garment & textiles, construction materials. At present, vegetables and fisheries are two Vietnamese goods with the biggest chance to access Australian market. For example, after litchi becomes the first fresh fruit from Vietnam accepted to Australian market with 100 tons and after 2 harvest seasons 2015 – 2016, Australia has become an interesting markets for enterprises. Based on the request from Vietnam, Australia has opened door for mango and is preparing procedures for other fruits such as dragon fruit, passion fruit. Statistics from the Ministry of Trae & Industry showed, after 6 years of implementing AANZFTA, trade balance between Vietnam and Australia has increased in average of 4.7% per year. In 2016, the trade balance reached 5.26 billion USD per year, an increase of 6.5% compared with 2015. Specifically, fisheries exported to Australia has increased from 15.5 million USD (2011) to 183.7 million USD (2016); cashew exported to Australia increased from 138.6 million USD to 168.7 million USD (in 2016, Vietnam has contributed to 73.6% total cashew imported to Australia).
Vietnamese enterprises to be more proactive
Despite Australia is a big market for Vietnamese enterprises, requirements for imported goods are very high. The trade and tax policies of Australia are transparent, with clear indication on the quality and food safety. As such, Australian importers will not accept unqualified products with low quality. Representative of Vietnamese trade in Australia Nguyen Thi Hoang Thuy said, Australia is a big market but full of challenges with requirements on food safety. For example with litchi, for the first time exported to Australia, only one cargo was accepted, while the others need more processing or returned. The reason for this is that, Australia requires all litchis to cut off its roots, so for unqualified cargo, roots of litchis must be cut off by hand, leading to an increase in expense and a large amount is ruined.
Director of Australian International Exhibition Julie Holt said, despite Vietnam ranks 2nd in exporting shoes, Vietnamese enterprises should pay attention to local customers as they prefer products which are natural friendly, comfortable and easy to wear. Besides, if manufacturers do not offer specific prices, Australian importers will not consider the offers. As such, when offering the price listing to Australian importers, Vietnamese enterprises should give out reasonable prices with negotiable rate from 3-5%.
In order to support Vietnamese enterprises exporting products to this market, Director of Australian Commerce to Vietnam Brian Oreilly said, imported products to Australia must have appropriate labels, including information about manufacturing and origins, with accurately describing about the goods and address of exporter and importer. Besides, enterprises should put themselves in international standard, with a view to meet the increasing demands of customers and compete with goods from other countries.
High potential
Ministry of Trade & Industry said, Australia is one of the big import countries in the world, in which the majority are products for manufacturing and consumption. Only in 2016, import value of Australia from Asia – Pacific countries is 135.5 billion USD. Besides, as stated in the ASEAN – Australia – New Zealand Free Trade Agreement (AANZFTA) signed in 2009, until 2018, Australia will cut 90% of import tariffs and by 2020, 100% tariffs will be reduced to 0%.
Vietnamese lychees at an Australian supermarket.
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Vietnamese enterprises to be more proactive
Despite Australia is a big market for Vietnamese enterprises, requirements for imported goods are very high. The trade and tax policies of Australia are transparent, with clear indication on the quality and food safety. As such, Australian importers will not accept unqualified products with low quality. Representative of Vietnamese trade in Australia Nguyen Thi Hoang Thuy said, Australia is a big market but full of challenges with requirements on food safety. For example with litchi, for the first time exported to Australia, only one cargo was accepted, while the others need more processing or returned. The reason for this is that, Australia requires all litchis to cut off its roots, so for unqualified cargo, roots of litchis must be cut off by hand, leading to an increase in expense and a large amount is ruined.
Director of Australian International Exhibition Julie Holt said, despite Vietnam ranks 2nd in exporting shoes, Vietnamese enterprises should pay attention to local customers as they prefer products which are natural friendly, comfortable and easy to wear. Besides, if manufacturers do not offer specific prices, Australian importers will not consider the offers. As such, when offering the price listing to Australian importers, Vietnamese enterprises should give out reasonable prices with negotiable rate from 3-5%.
In order to support Vietnamese enterprises exporting products to this market, Director of Australian Commerce to Vietnam Brian Oreilly said, imported products to Australia must have appropriate labels, including information about manufacturing and origins, with accurately describing about the goods and address of exporter and importer. Besides, enterprises should put themselves in international standard, with a view to meet the increasing demands of customers and compete with goods from other countries.
