In international business, timing is everything. Getting in early on an opportunity is better than buying in at the top of the cycle.
Australian businesses have a golden opportunity to participate in Vietnam’s clean energy transition, and the timing could not be better. As the world increasingly shifts to net zero, Australian businesses will find themselves uniquely positioned to capitalise on the transition and contribute to global sustainability efforts.
The recent signing of a Comprehensive Strategic Partnership between Australia and Vietnam, coupled with the Australian Government’s AUD2 billion Southeast Asia Investment Financing Facility, has opened the doors to unprecedented possibilities for Australian businesses to play a key role, particularly in clean energy and sustainable infrastructure sectors.
While some other countries are walking back their emissions reduction targets, Vietnam has set ambitious targets to generate nearly half of its power from renewable sources by 2030 with international assistance. As the nation seeks expertise in low-carbon technologies, this has opened the gates for Australian businesses to participate in Vietnam’s clean energy transition.
Australian businesses are well positioned to leverage their expertise and capabilities to reshape our economic ties through investment, the export of equipment, technology and services, and fostering future skills and knowledge development.
Recognising the significance of this opportunity, a delegation of 40 Australian business leaders travelled to Ho Chi Minh City last month to meet with 100 of their Vietnamese counterparts at the Australia-Vietnam Green Economy Summit.
Australia’s assistant minister for climate change and energy, Senator Jenny McAllister, joined other expert speakers to explore commercial opportunities, foster collaboration, and build connections between Australia and Vietnam via forums and workshops. It is another key instalment in strengthening bilateral ties and exploring practical opportunities for economic engagement.
As Vietnam’s population approaches 100 million people, accompanied by one of the world’s highest economic growth rates, the country will need to meet the energy needs of its rapidly expanding manufacturing sector. Projections indicate that the country’s transition to a green economy will create nearly one million jobs by 2040.
Vietnam’s increasing focus on diversifying its energy generation and investing in renewables aligns with Australia’s aspiration to position itself as a renewable energy superpower.
The unveiling of the Australian Government’s “Future Made in Australia Act” signals that Australia will increase its efforts to support advanced manufacturing and clean energy projects. This will bolster capabilities in areas such as battery and solar panel manufacturing and critical minerals mining and processing to compete in the global race for jobs.
As the world transitions towards sustainability, Australia has the chance to prosper economically and significantly impact global environmental challenges.
The growing partnership between Australia and Vietnam, coupled with Vietnam’s commitment to green energy, opens compelling avenues for businesses to pursue commercial opportunities. If Australian enterprises want to be the first movers in Vietnam’s rapidly evolving energy sector, proactive engagement will be essential. They should actively seize opportunities and position themselves to shape the evolving regulatory framework.
In turn, it will be vital for them to deepen their understanding of Vietnam’s current business landscape and acquire the necessary knowledge and capabilities to achieve long-term financial and strategic success.
This article was written by Leigh Howard, the CEO of Asialink Business at the University of Melbourne, and one of Australia’s leading voices on international business.
