Arya News - Australia and Vietnam had reached a new deal to strengthen military cooperation and expand trade, amid shared concerns over China`s growing assertiveness.
SYDNEY – Australia and Vietnam committed on Aug 11 to strengthen military cooperation and expand their booming trade, further deepening bilateral ties because of their shared concerns about China’s growing assertiveness.
Vietnam’s leader To Lam, making his first visit to Australia as president and as head of the ruling Communist Party, told reporters that he and Australian Prime Minister Anthony Albanese were seeking “ever more expansive space for cooperation”. He said the two countries had reached a new deal to address disruptions to supply chains, especially to supplies of critical minerals, clean energy and superconductors.
“I am confident that, given our shared resolve, our bilateral ties will continue to thrive,” Lam said at a joint press conference in Canberra.
Lam’s decision to visit Australia so early in his term – he returned to the presidency in April – was seen by analysts as a sign of the burgeoning ties between the two nations. They have developed closer defence ties in recent years in the face of shared opposition to China’s expansive territorial claims in the South China Sea.
Huong Le Thu, a Vietnam expert and the chair of the Australia Vietnam Policy Institute advisory board, told The Straits Times that both countries are looking to work together as they “hedge” against their anxieties about China’s military clout and the willingness of both Beijing and Washington to use economic coercion and tariffs.
“Both are very nervous of China’s increasing confidence in testing its military capabilities and projecting its military power,” she said.
“They are both concerned about China, the US, and the eroding world order. They want both superpowers to be constrained by the rule of law and by anything in the international system that ensures predictability and protects smaller countries from being abused by the middle powers.”
Aside from their growing security cooperation, two-way trade between the countries has soared in recent years, from A$14.6 billion (S$13.2 billion) in 2020 to more than A$30 billion in 2025. This trade is fuelled by growing Australian exports of iron ore, coal and education services, and Vietnamese exports of manufactured goods such as telephones and batteries as well as crude oil.
During his visit, Lam, who arrived on Aug 9 and was due to travel to New Zealand on Aug 12, agreed to expand Vietnamese cooperation with Australia on maritime security and disaster relief, and to explore technology and e-commerce opportunities.
Gatra Priyandita, from the Australian Strategic Policy Institute, told ST that Lam’s visit to Australia was largely symbolic but had resulted in practical ways to build on an agreement by the two countries in 2024 to elevate their relations to a “comprehensive strategic partnership”.
“The two states have a mutual interest in preventing Chinese hegemony in Asia,” he said. “For Vietnam, finding opportunities in as many places as possible is a form of risk mitigation. Despite being communist, Vietnam has always been wary of the intentions of great powers, especially China.”
Le Thu said Vietnam is looking for partners beyond South-east Asia, while Australia recognises that it needs to find partners beyond its traditional circle of Western-oriented democracies. But she said there was further room to promote Australian investment in Vietnam and to deepen security ties to cover intelligence sharing, more joint exercises and cooperation on cybersecurity.
“To Lam’s visit was positive and constructive, but it was all quite safe,” she said. “Australia is hedging more than it has in the past. It is breaking out of its comfort zone and working with countries in the neighbourhood as they are rather than as it would like them to be.”
Albanese told reporters that the pair had discussed the challenges facing the region and both want an “Indo-Pacific that is peaceful, stable and prosperous”. He said the new deal to promote reliable flows of energy and critical minerals was “good for our economies, good for our security, and good for our region”.
“At a time when the world is becoming more uncertain, resilient supply chains matter more than ever,” he said. “Whether it’s food, energy or critical goods, both our countries have an interest in keeping trade open and reliable.”
During Lam’s visit, Vietnamese budget carrier VietJet announced that it will fly from Ho Chi Minh City to the new international airport in western Sydney from January 2027 with two round-trip services per week.
He and Albanese also announced stronger cooperation on agriculture and innovation, and an agreement that will enable RMIT University to build a campus in Hanoi.
Still, most analysts believe there are limits to how far the blossoming relationship will develop, especially as Australia is a US ally whereas Vietnam is non-aligned.
“The degree of Australia’s security ties with Vietnam will never be as deep as with a country such as the Philippines,” Priyandita said.
“Vietnam can be an important actor in pushing back against Chinese encroachments in the South China Sea, but it won’t be a defence treaty ally or a bulwark against China.”
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