Australian and Vietnamese prime ministers elevate their nations' booming economic relationship

Australian Prime Minister Anthony Albanese, right, and Vietnamese Prime Minister Pham Minh Chinh embrace at the end of a joint statement at Parliament House in Canberra, Thursday, March 7, 2024. The Australian and Vietnamese prime ministers have discussed ways of improving an already booming economic relationship. (Lukas Coch/AAP Image via AP)

Australian Prime Minister Anthony Albanese, right, and Vietnamese Prime Minister Pham Minh Chinh exchange documents during a signing ceremony at Parliament House in Canberra, Australia, Thursday, March 7, 2024 (Lukas Coch/AAP Image via AP)

Australia's Prime Minister Anthony Albanese, center left, and Vietnam's Prime Minister Pham Minh Chinh, center right, wave to school children as they walk into Parliament House in Canberra, Australia, Thursday, March 7, 2024. (Mick Tsikas/AAP Image via AP)

MELBOURNE, Australia (AP) — Australian and Vietnamese prime ministers on Thursday discussed ways of improving an already booming economic relationship, as part of Australia’s strategy to diversify trade away from China.

Vietnamese Pham Minh Chinh’s official state visit came after he attended a summit of Southeast Asian leaders this week co-chaired by his Australian counterpart Anthony Albanese and Laotian Prime Minister Sonexay Siphandone.

The Vietnam bilateral relationship has proved a success in Australia’s hedge against Chinese economic moves. Australia says China’s official and unofficial trade barriers have cost Australian exporters up to 20 billion Australian dollars ($13 billion) a year since 2020, though those steps have been relaxed gradually since Albanese’s government came to power in 2022.

Albanese said trade between Australia and Vietnam had increased 75% in two years to AU$25.7 billion ($16.9 billion) in 2022, the most recent year for which data was available. Vietnam had become Australia’s 12th-largest trading partner.

“Prime Minister Chinh and I discussed our shared determination to grow our trade and investment links to support both our countries’ economic prosperity,” Albanese told reporters.

The leaders agreed to elevate the bilateral relationship to a comprehensive strategic partnership which Chinh said was the highest level of cooperation Vietnam enjoyed with any country.

The improved relationship was the result of increasing political trust and diplomatic cooperation, Chinh said.

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This version has corrected the 2022 trade figure was AU$25.7 billion, not $16.9 billion, which is the amount in U.S. dollars.