It is highly unlikely that Mr Morrison will abandon Australia`s neutral attitude towards maritime claims outside of freedom of navigation. But there will be strong statements of support for a rules-based trade order. Vietnam remains a one-party state and centralized control will always entangle its potential. But seeing Australia and Vietnam get together this week in trade is an important statement of an open Indo-Pacific space. While the global economic downturn has been problematic, the long-term outlook for Australia-Vietnam trade relations remains positive. In both countries, there are many possibilities, such as: all this makes Mr. Morrison a welcome visitor to Hanoi. It represents Australia`s long-standing commitment to free trade and also wants to protect China. Other regional giants, such as Indonesia and India, have often refused to be outbid by diplomatic counterweights over China. But if so, it is Vietnam that now has the highest expectations of Australia in this regard. For years, the most violent physical clashes have occurred in the South China Sea around the reefs claimed by Hanoi and Beijing and around Chinese oil exploration in the waters claimed by Vietnam.
Hanoi wants diplomatic support against China and Australian investment in its claims in the South China Sea. In order to avoid default in collaboration with local partners, Austrade encourages companies to complete due diligence and require a standby letter of credit issued by a central branch of a trusted bank or commercial credit insurance. The government has implemented ambitious structural reform that addresses economic challenges such as public debt, welding, non-trade barriers and environmental sustainability, social justice and emerging macroeconomic stability issues. Australian businesses are generally well received in Vietnam. Australia is considered a modern, technologically advanced and welcoming country, which is located in Vietnam`s immediate interest zone. Long-term trade and investment opportunities are expected to increase in line with Vietnam`s progress in implementing its legislative and administrative reform agenda. The agreements are expected to allow Vietnamese exports, including agricultural products, textiles, clothing and footwear, to enter the australian and New Zealand markets. They will also facilitate the flow of investment from both ocean countries to Vietnam, VietnamNet writes. Two-way trade between Australia and Vietnam has grown encouragingly over the past five years, to $6 billion in 2009. Export Finance Australia is Australia`s export credit agency that aims to help companies overcome the financial barriers they face in exporting. By offering a wide range of export financing solutions, it helps exporters take advantage of trade opportunities.
Export Finance Australia also offers updated periodic country risk analyses. In response to the economic slowdown, the government has put in place a series of measures aimed at easing monetary policy and reviving the economy. This included a 4% subsidy for commercial loans. However, the government`s ability to provide a large fiscal stimulus to the economy has been limited by a large trade deficit and a weak foreign exchange reserve.