Unlocking Opportunities: NAB’s Insights on Australia’s Agribusiness in Vietnam

Khan Horne, NAB Executive for Regional and Agribusiness, shares insights on how Australia’s agribusiness sector is seizing opportunities in Vietnam, following a recent NAB agricultural innovation tour to the country.

The Resilience of Australia’s Agribusiness Sector

Despite an unpredictable geopolitical landscape and the cyclical nature of seasons and markets, Australia’s agribusiness sector continues to enhance productivity and grow export value.

Vietnam: A Prime Market for Australian Exports

Among our export markets, Vietnam stands out as Southeast Asia’s fastest-growing economy and Australia’s most rapidly expanding destination for beef and live cattle. The country’s burgeoning middle class, combined with an appetite for technology and innovation, made it an ideal setting for NAB’s recent agricultural innovation tour.

Building International Relationships

For over two decades, NAB has organized agricultural study tours for customers to destinations including New Zealand, Indonesia, South America, China, and Japan. These tours foster international relationships, allowing delegations to meet with government officials and explore trade opportunities while networking with peers, establishing connections that extend beyond the tours.

A Growing Appetite for High-Quality Produce

Vietnam, home to over 100 million people and a thriving middle class, is attracting global interest for its increasing demand for high-quality agricultural products. This demand is not limited to traditional staples; the growth of Vietnam’s service sector, particularly in technology and IT, provides access to a skilled workforce within a favorable time zone.

Embracing Innovation in Agriculture

The drive for technology in Vietnam’s agriculture sector has also been evident in NAB’s own operations there, where skilled professionals proficient in English play crucial roles in technology, innovation, and data security. Rising incomes among consumers are shifting preferences, leading to a growing demand for premium Australian beef and lamb. Although buffalo remains the dominant red meat, Australian products are gaining popularity due to strong branding and a variety of portion sizes that appeal to both supermarkets and independent butchers.

Spotlight on the Vu Yen Feedlot

During the tour, participants visited the Vu Yen feedlot in Ho Chi Minh City, which raises both local and Australian cattle. Jason Strong, an experienced red meat industry leader, emphasized the essential connection between smallholder farmers in developing countries and the value-added opportunities live exports present to both Australian producers and Vietnamese consumers.

Attracting Australian Food Manufacturers

Vietnam’s strategic location as a trade hub has also drawn the attention of Australian food manufacturers. For instance, MWT Foods has been operating its central macadamia nut shelling and food processing facility in Ho Chi Minh City since 1996. Chairman Michael Waring describes Vietnam as a hotspot for the nut industry, attributing his continued investment to the country’s import/export potential, technological advancements, and skilled workforce.

New Opportunities for Australian Produce

New agreements are opening doors for Australian products, including a recent accord securing market access for Australian blueberries, projected to be worth approximately $22 million over five years.

NAB’s Investment in Innovation

NAB has made significant investments in Vietnam, establishing Innovation Centres in Ho Chi Minh City and Hanoi. These centres connect local technology talent with NAB and enhance the delivery of outstanding digital experiences. Vietnamese tech specialists collaborate with teams in Australia and global partners, leveraging modern technologies to foster exceptional customer experiences.

Strengthening International Trade Relationships

The opportunity for international trade and partnership development with Vietnam has never been stronger. It is evident that the exchange of goods and services between our two nations is bringing us closer together.

Source: NAB