09:35 | 06/05/2015 Trade
Vietnam’s exports to Australia are predicted to surge in 2015 due to the latter’s decision to import prominent commodities from the Southeast Asian nation.
Processing cashew for export (Photo: VNA)
The Australian Ministry of Agriculture approved litchi imports from Vietnam earlier this month and as a result, a number of Australian authorities are preparing to visit Vietnam to examine and agree on quality standards for the fruit.
In 2014, Vietnam’s farm produce and seafood grew by 17.5 percent annually among goods destined for Australia, making it the highest growing commodity.
Pepper saw a yearly increase of 52.5 percent while aquatic products recorded a rise of 20.7 percent to exceed the targeted 200 million USD.
Cashews witnessed a slight rise of 12.6 percent to dominate the Australian market with 96 percent of the market share.
Furthermore, processing and manufacturing industrial products also saw a 13.9 percent rise against the previous year.
Other commodities with high growth were iron and steel (121 percent); electric wire (80.4 percent); cement (255 percent); means of transport and spare parts (66.5 percent); garments and textiles (46.7 percent); footwear (30.6 percent); and wood and timber products (22.6 percent).
Currently, Australia is the eighth biggest importer of Vietnamese products. In 2014, trade hit 6 billion USD, an annual rise of 18.8 percent, raking in 3.99 billion USD in exports and running a trade surplus of 1.93 billion USD.
According to the Vietnam General Department of Customs, export turnover to Australia reached 742.8 million USD in the first quarter of 2015. Seafood, in particular, made up 59 percent of Vietnam ’s total export revenue.
However Australia is a highly selective market with strict quality and quarantine regulations. Businesses should pay careful attention to ensuring quality before abroad.
The Vietnam Trade Office in Australia advised businesses to declare cargo status to the Australian Quarantine and Inspection Service (AQIS) immediately after harbouring at the foreign market.
Simultaneously, firms must ensure safety and quality standards to save accrued expenses.
Import demand from Australia is high; each year, the country spends around 80 billion USD on imports.