Black gold reaps $1 billion reward in Vietnam

With trade doubling between the two nations over the last seven years, Australian Prime Minister Scott Morrison has touched down in Vietnam for crucial trade talks.

QUEENSLAND’S black gold is reaping a billion dollar payday in Vietnam, as Prime Minister Scott Morrison enters high-level talks to unlock more lucrative trade deals with growing southeast Asian nation.

Mr Morrison touched down in Hanoi last night for trade talks, but national security and the South China Sea will also be on the agenda.

Mr Morrison rubbed shoulders with foreign dignitaries and business giants from both Vietnam and Australia last night, including representatives from ANZ, Macquarie Capital and Linfox Airports.

As tensions rise between China and Vietnam over Chinese incursions into Vietnam’s economic exclusion zone within the South China Sea, Mr Morrison stressed the importance of peace and stability in the region.

“If we allow the sovereignty or independence of any of our neighbours to suffer coercion, then we are all diminished,” he said.

But it can be revealed Australia’s coal exports to Vietnam have surged 9-fold since 2015 and are now worth more than $1 billion.

Australian Prime Minister Scott Morrison and his wife Jenny arriving in Hanoi, Vietnam. Picture: Adam Taylor/PMO

The coal boom has underpinned Queensland exports to Vietnam, which have doubled in the past four years from $580 million to $1.6 billion.

Coal alone is now worth $722 million a year — up sevenfold from $97 million just four years ago — while live animal exports net $145 million.

While Australia already has trade deals with Vietnam through the Transpacific Partnership (TPP) and ASEAN-Australia-NZ free trade agreement, the PM is seeking to deepen those ties and see the details implemented.

As the shadow of China looms large in the region, Mr Morrison last night stressed the importance of the relationship, both economically and for security,

“This is a great time to be doing business in Vietnam. Our commitment to each other, and our shared vision for security and prosperity, has never been stronger,” he said.

“We know that in Southeast Asia we need security and peace to maintain our prosperity.”

Mr Morrison last night also committed $5 million over three years to build an Australia Vietnam Centre for Knowledge Exchange in partnership with Vietnam’s Ho Chi Minh National Academy of Politics and central Government Ministries.

Two-way trade between Australia and Vietnam has doubled since 2012, reaching a record $14.5 billion last year, with only economic dealings with India are growing at a faster rate.