Australia, Vietnam Boost Ties in Hedge Against China Amid Global Uncertainty

Australia and Vietnam are deepening their bilateral ties, committing to strengthen military cooperation and expand their significant trade relationship. This move is driven by shared concerns over China's increasing assertiveness in the region.

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ever more expansive space for cooperation

During Vietnamese leader To Lam's first visit to Australia as president, he and Australian Prime Minister Anthony Albanese expressed a desire for "ever more expansive space for cooperation." A new agreement was reached to address disruptions in supply chains, with a specific focus on critical minerals, clean energy, and superconductors. Lam stated his confidence that the bilateral ties would continue to thrive due to their "shared resolve."

Analysts view Lam's early visit as a signal of the burgeoning relationship between the two nations. Their defense ties have grown closer in recent years, largely in response to China's expansive territorial claims in the South China Sea. Huong Le Thu, a Vietnam expert, noted that both countries are working together to "hedge" against anxieties about China's military capabilities and the potential for economic coercion from both Beijing and Washington.

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I am confident that, given our shared resolve, our bilateral ties will continue to thrive

"Both are very nervous of China’s increasing confidence in testing its military capabilities and projecting its military power," Thu explained. She added that both Vietnam and Australia are concerned about China, the United States, and the eroding world order, wishing for both superpowers to be constrained by international law and predictability to protect smaller nations from abuse.

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hedge

Beyond security, bilateral trade has surged, reaching over A$30 billion in 2025 from A$14.6 billion in 2020. Australian exports include iron ore, coal, and education services, while Vietnam supplies manufactured goods like telephones and batteries, along with crude oil. Lam's visit also included discussions on expanding cooperation in maritime security and disaster relief, and exploring opportunities in technology and e-commerce. Gatra Priyandita from the Australian Strategic Policy Institute described the visit as largely symbolic but productive, building on the 2024 agreement to elevate relations to a "comprehensive strategic partnership."

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Both are very nervous of China’s increasing confidence in testing its military capabilities and projecting its military power