Over the past five years, trade between the two countries rose at an average of more than 20% a year, reaching $8 billion in 2008. This makes Vietnam Australia’s fastest growing trading partner in ASEAN. However, the impact of the global economic recession nearly halved the volume of trade between the two countries in the past year.

Vietnam is Australia’s fifth largest recipient of overseas development aid. An estimated $106 million is to be spent in 2009-10. But because of Australia’s military support for the US in its 15-year war against Vietnam — in which 3-4 million Vietnamese were killed and the US and its allies dropped more bombs than in all of World War II — morally much more aid is owed by way of reparation.

A lot of media coverage was given to the return, on August 31, of the remains of the last two Australian armed forces personnel — Canberra bomber pilots — who went missing in action in the Vietnam War. But none of the articles mentioned the death and damage inflicted on the Vietnamese people.

Operating as part of the US Air Force’s 35th Tactical Fighter Wing, Australia’s Canberra bombers flew just 6% of the Wing’s sorties but inflicted 16% of the damage.

Overall, 11,963 sorties were flown by the Canberra bombers in Vietnam and 76,389 bombs were dropped. Two Canberra bombers were lost.

Australian military casualties were 521 killed and 2398 wounded, but the many high-altitude bombing raids by the Canberra bombers would have probably inflicted far higher casualties.

Although AusAID’s programs in Vietnam include support for infrastructure, education and training, water and sanitation, and poverty reduction among ethnic minority groups, Australian governments — Liberal and Labor — seek to advance Australian business interests through the aid program.

For example, Australian building contractors have enjoyed big contracts in several infrastructure projects funded by Australian aid to Vietnam.

Education is Australia’s third-largest export earner and is the single largest service export to Vietnam, worth $465 million in 2008, up 63% from the previous year.

In 2008, there were 16,000 student enrolments in Australian education institutions, and a further 14,000 students took Australian education and training courses in Vietnam. Most are paying thousands of dollars a year to study here as the number of Australian scholarships to Vietnam is very low. It was recently increased from just 150 to 175 a year.

As Australian trade minister Simon Crean put it: “There are opportunities in Vietnam for Australian companies … As Vietnam’s population grows and income levels rise, we are seeing changing consumption patterns, and the domestic industry is unable to keep pace.

“For Australian agribusiness, this is creating new opportunities not only for meat and dairy products, but in livestock, cattle feed, irrigation systems and dairy equipment.”

Australian aid is also heavily geared towards promoting neo-liberal economic “reforms” in recipient countries.

During his visit to Vietnam in July, Crean announced a $12 million contribution to phase two of the “Beyond WTO” program and more technical aid and capacity building to help Vietnam implement its commitments under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

The AANZFTA is the largest free trade agreement Australia has signed. It commits Vietnam to lower import tariffs to make Australian exports more cost competitive.

Foreign minister Stephen Smith says Vietnam’s substantial opening of its financial sector to foreign participation has been “crucial to boosting bilateral investment”.

Examples of this are the significant investments in Vietnam by Australia’s ANZ Bank and Commonwealth Bank.

As a poor and still war-ravaged country with a population of more than 86 million, the Vietnamese government is under huge pressure to make economic concessions to global corporations and the richer and more powerful countries.

The duty of all supporters of global justice is to pressure our government to base its relations with countries like Vietnam on the basis of people-to-people solidarity and not the narrow self-interest of Australian big business.

By Peter Boyle - GreenLeft.org.au - September 7, 2009

Vietnam boosts ties with Australia, New Zealand

The General Secretary of the Communist Party of Vietnam, Nong Duc Manh, began an official visit to Australia on September 6 at the invitation of Australian Prime Minister Kevin Rudd.

This is the second visit to Australia by a Vietnamese Party leader since General Secretary Do Muoi’s visit in August 1995.

The purpose of Mr Manh’s visit is to strengthen the friendship and multifaceted cooperation between Vietnam and Australia and to pave the way for the establishment of a comprehensive partnership in the near future.

The visit takes place at a time when Vietnam is actively implementing a foreign policy of independence and self-reliance for peace, cooperation and development and is integrating into the region and the world. Meanwhile, Australia is adopting new policies to continue to maintain social stability and development. Both countries have encountered numerous difficulties as a result of the global financial meltdown and economic recession and are making every effort to ride out the storm.

Relations of friendship and multifaceted cooperation between Vietnam and Australia have developed strongly since the two countries established diplomatic ties in 1973. Both sides have constantly maintained and increased their exchanges of high-level official visits.

Bilateral cooperation has been expanded in all areas, from politics to economics, trade, investment, education and tourism, especially after Prime Minister Nguyen Tan Dung’s Australian visit in October 2008. Currently, Australia is Vietnam’s 7th largest trade partner and its third largest export market. Two-way trade has increased considerably, reaching nearly US$5.56 billion last year.

Australia’s official development assistance (ODA) to Vietnam has also risen, hitting AUD106 million in the 2008-09 fiscal year. Australia has opened more banks in Vietnam and is also investing in a number of important economic fields. So far Australia has invested in 186 projects in Vietnam capitalised at US$1.04 billion, ranking 19th among foreign investors in the country. These projects are focused on construction and industry, services, agro-forestry and fisheries, processing, education and training.

Education is one of the priority areas in bilateral cooperation between Vietnam and Australia. Currently, more than 17,000 Vietnamese students are studying in Australia and another 12,000 are attending Australian schools in Vietnam.

Labour cooperation between Vietnam and Australia began in 2006. In the first 6 months of this year, about 1,000 Vietnamese trainees were sent to work in Australia.

The two countries have also worked closely in international forums such as ASEAN, the ASEAN Regional Forum (ARF), the East Asia Summit (EAS), the Asia-Pacific Economic Cooperation Forum (APEC) and the World Trade Organisation (WTO). They have joined regional and international efforts to address new challenges and threats to maintain peace and security and fulfil the UN Millennium Development Goals for sustainable development.

After Australia, Party General Secretary Nong Duc Manh will pay an official visit to New Zealand at the invitation of Prime Minister John Key.

Cooperative relations between Vietnam and New Zealand have fared well since they established diplomatic ties in June 1975. The two countries have signed many agreements, including those on economic and trade cooperation, investment protection and promotion, and aviation, laying a firm foundation for development in various areas. Last year, two-way trade hit more than US$300 million.

During a visit to New Zealand in May 2005 by the then Prime Minister Phan Van Khai, the two countries signed a statement affirming their determination to establish a stable, durable and comprehensive partnership in the next decade. During another visit to New Zealand in September 2007, State President Nguyen Minh Triet and his hosts reaffirmed their desires to increase bilateral cooperation in all areas. Currently, New Zealand is Vietnam’s 33rd most important trade partner. Economic, trade and tourism cooperation between Vietnam and these two countries is expected to grow and flourish after the recently signed ASEAN-Australia-New Zealand Free Trade Area agreement takes effect.

Radio Voice of Vietnam, September 6, 2009