• The largest importing sources of Australia

Asian countries: Due to being located in the Asia-Pacific region with many favorable conditions for trade, Australia tends to import a lot of goods from countries/territories in Asia. In 2023, total imports of goods from countries in this region accounted for 62.1% of Australia's total import turnover (2023 data from ITC Trademap). Notably, in the top 10 largest import partners of Australia, there are 7 countries/territories in Asia, accounting for 52.9% of the total import turnover of this country.

United States, Germany, Italy: As countries with many similarities in culture and language with Australia, the United States, Germany and Italy are also major export partners to the Australian market.

The above partners are currently dominating Australia's import market in most items (especially raw materials, machinery, equipment, components, pharmaceuticals, etc.). Among these import partners, many are large economies with high competitiveness and many export products similar to Vietnam's. Therefore, Vietnamese goods are assessed to face a high level of competition when entering the Australian market.

Table 1: Top 10 importing sources of Australia in 2023

Source: ITC Trade Map, 2024

• FTA partners

By the end of 2023, Australia had a total of 18 FTAs ​​in effect (with 30 economies), 03 FTAs ​​under negotiation (with the EU, India and UAE) (according to the Australian Department of Foreign Affairs and Trade, 2023). Thus, goods from these 30 partners when exported to the Australian market can enjoy tariff preferences under the FTA with Australia.

Most of Australia's FTA partners are located in the Asia and Oceania regions, with many products similar to Vietnam. Therefore, despite having 03 FTAs ​​in common with Australia (AANZFTA, CPTPP, RCEP), Vietnam still has to compete fiercely with many rivals, especially regional economies such as China, ASEAN, etc. when exporting to the Australian market.

Table 2: Australia’s FTA and FTA Partners

Source: Australian Department of Foreign Affairs and Trade, 2023

• ASTP Partner

The Australian Generalized System of Tariff Preferences (ASTP) is a unilateral tariff preference mechanism that Australia grants to least developed countries, Pacific Islands Forum countries and developing countries. According to the Tariff Schedule Regulations 2004 (amended on 29/12/2022), Australia applies the ASTP mechanism to 179 countries and territories (including Vietnam). Currently, Vietnam is enjoying preferential tariffs under the ASTP mechanism for 877 tariff lines when exporting to the Australian market.

Unlike FTAs, ASTP is a unilateral preferential mechanism of Australia, so Australia can change the subjects and conditions for enjoying ASTP at any time, depending on Australia's policies in each period. In addition, preferential tariffs under ASTP are often not as competitive as preferential tariffs under FTAs. However, the tariff reduction under Australia's ASTP mechanism also creates certain advantages for partner countries enjoying this mechanism

Source: Center for WTO and International Trade

• Market size of Australia
• Trade activities of Australia
• Consumer characteristics in Australia
• Characteristics of Australia’s distribution system
• Vietnam's exports to Australia