Many Vietnamese goods enjoy tax incentives in Australia and New Zealand

The commitment was part of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZ FTA), which was signed at the ASEAN Summit in Hua Hin, Thailand.

Australian Ambassador Allaster Cox told reporters in Hà Nội on Wednesday that Việt Nam will gain a lot of benefits when accessing to the Australian and New Zealand markets.

Vietnamese exports, such as fish and fish products, fruits, sugar, pulp, paper, wood products, will be exempted from tax by 2010. Australia and New Zealand also waive tax on the majority of mineral, fiber, garment and textile products by the same year.

According to the Australian Ambassador, the agreement reflects the deepening ties between Australian and Việt Nam. It not only helps strengthen bilateral trade and investment, but also simplifies administrative and immigration procedures in favor of businesses from both countries.

Currently, Việt Nam is Australia’s sixth largest trade partner in ASEAN with the two-way trade valued at US $8 billion in 2007-2008, accounting for 10% of Australia’s trade turnover with ASEAN. On average, the two way trade increases by 22% per annum over the past 5 years.

With the AANZ FTA, Việt Nam also has a chance to boost labor cooperation with New Zealand.

New Zealand has reached some “limited agreements” with Việt Nam on temporary residence for 200 Vietnamese skilled chefs and mechanical workers.

Furthermore, both countries have begun negotiating the Working Holiday Schemes, under which about 100 Vietnamese workers will be recruited to work in New Zealand every year.

AANZ FTA is viewed as the ever largest FTA of Australia and New Zealand and the most comprehensive one of ASEAN.

The AANZ FTA covers commodities, services, investment, intellectual property, e-commerce, entrepreneurs’ temporary relocation, and economic cooperation.

By Ngọc Vân