Australia-Vietnam Business Forum (Photo: VOV)

Attached future

For 50 years cooperation between ASEAN and Australia has developed strongly in most fields, particularly economics. Australian government data has shown that in 2022 bilateral trade revenue reached 178 billion USD, putting ASEAN ahead of Australia's major traditional partners – the US, Japan, and the EU – to become its second largest trading partner, after China. Two-way investment between ASEAN and Australia totaled 307 billion USD at the end of 2022.

At the ASEAN-Australia Business Forum on Tuesday in Melbourne, Prime Minister Anthony Albanese praised the high complementarity between the Australian economy and ASEAN economies. He said that if the two sides tighten trade-investment relations and integrate deeper into the other’s economy, the ASEAN-Australia region will form the 4th largest economic area in the world by 2040.

For ASEAN countries, Australia is a large neighbor and an important economic partner that can provide abundant capital, management skills, and resources. Prime Minister Albanese said Southeast Asia is an extremely important space for Australia and Australia is determined to raise trade-investment relations there to a new level.

“We want to do more to support regional growth and realize mutual benefit. The government I lead has made it clear that, more than any other region, Southeast Asia is where Australia’s future lies,” said Albanese.

Prime Minister Albanese said Australia will set up a 2-billion-USD capital support mechanism to “turbocharge” trade and investment in Southeast Asia. It will also earmark 140 million USD to extend the Partnerships for Infrastructure Program with ASEAN.  

On Monday, Australia announced a range of cooperative initiatives with ASEAN. With the Climate and Clean Energy Window, Australia will provide a financial package worth 6.5 million USD to strengthen joint climate change and clean energy efforts. This is the first initiative within the framework of the "Partnership between Australia and Southeast Asian governments" announced by Prime Minister Albanese last year.

Australia will invest an additional 145 million USD in the next five years to enhance the resilience and prosperity of the Mekong subregion through the Mekong-Australia Partnership, improve water security, respond to climate change, and fight transnational crime.

Security cooperation

Security is another important aspect of ASEAN-Australia relations in the new stage of development. Australia has tried in the past few years to solidify security relations, particularly maritime security, with ASEAN countries.

Australian Foreign Minister Penny Wong (Photo: skynews)

At a maritime security conference on Monday in Melbourne, Foreign Minister Penny Wong said Australia will spend 42 million USD in the next four years to strengthen its maritime partnership with ASEAN countries. Ensuring stability and freedom of movement on maritime routes in Southeast Asia is vital to maintaining regional peace, and Australia recognizes ASEAN’s growing role in this, said Wong:

“We recognize that ASEAN is the key to the region's stability and security, and we are committed to supporting ASEAN's leadership. We recognize the strength of ASEAN's collective voice, which resonates throughout the region when it speaks on the importance of sovereignty and rules,” said Wong.

Observers say security cooperation will be the key part of ASEAN-Australia relations. Many Southeast Asian countries have repeatedly affirmed their determination to build ASEAN’s centrality, and they don’t want to be enticed or forced to choose sides in the competition of powers.