Australia's business ties with Vietnam are set to grow further once the Trans Pacific Partnership comes into effect, according to analysts and diplomats.
Australia and Vietnam are party to the 12 nation TPP that now requires each country to agree to the goals of liberalising trade and business.
Hanoi-based World Bank economist Sandeep Mahajan said the TPP marks a major plus for Vietnam's economy, and is set to add a cumulative eight per cent to GDP by 2030.
"The question is how much benefit (Vietnam) can achieve from it - not whether they can derive benefit," Mahajan told AAP.
Layton Pike, charge d'Affaires at the Australian Embassy in Hanoi, told Vietnam's 'Tuoi Tre' newspaper the TPP would boost bilateral trade already valued at more than $A8 billion annually.
The TPP will offer Australian investors greater market access to Vietnam's education market, currently Australia's third largest.
But Australia's agricultural producers are also looking to increase market share, leading to fears Vietnamese farmers could lose out to more efficient Australian producers.
"Producers will also have greater access to Australia's leading mining equipment technology and services, which should improve competitiveness in this important industry," Pike said.
Brian O'Reilly, Australian Chamber of Commerce president in Vietnam, said the TPP has already triggered widespread interest within the Vietnam business community.
Analysts say lower tariffs within the 12 nation group will provide a major boost to Vietnam's clothing and textile exports, adding some $US6 billion ($A8.19 billion) in annual export income.
Foreign investment has also been rising in Vietnam.
The Asian Development Bank said that in 2014 foreign direct investment commitments rose to $US15.6 billion, with some $US4.6 billion committed to existing investments.
Mr O'Reilly said Vietnam offered potential for Australian investors seeking access to markets in other Association of South East Asian Nations countries.
"ASEAN is the place where you can establish in one country (Vietnam) with the TPP in place, and grow into the rest of the ASEAN community," he said.
Source: https://au.news.yahoo.com
Key words: Potential, for Australia, Vietnam, TPP pact
