Vietnamese President To Lam’s visit to Australia this week highlighted the burgeoning relationship between the two countries. Given that much of Australia’s large Vietnamese diaspora remains suspicious of the Communist Party of Vietnam – and South Vietnam flags are often seen flying in suburbs with a concentration of Vietnamese Australians – there is a domestic balancing act that the Australian government needs to perform. However, the convergence of interests between the two countries is now proving the stronger pull.
The focus of Lam’s visit was on new economic and security agreements. The now dominant lens of Australia’s foreign policy perceives economic security as a central pillar of national security.
The economic angle is where the most movement is already happening. Since 2020, two-way trade has doubled, with Vietnam now approaching Australia’s list of top ten trading partners. The specific measures announced this week were mostly incremental: greater agricultural access (including kangaroo meat), and creating smoother services within e-commerce and banking sectors. The low-cost airline Vietjet confirmed it will fly into the new Western Sydney Airport, due to be opened later this year. These are not transformative arrangements, but things that push the relationship forward in important ways.
