(VAN) Despite robust growth in Q1/2026, Viet Nam’s agro-exports to Australia are struggling with tough biosecurity hurdles and soaring freight charges.
According to the Institute of Strategy and Policy on Agriculture and Environment (ISPAE), in Q1 2026, Viet Nam’s total import-export turnover reached approximately USD 249.5 billion, of which agriculture, forestry, and fisheries accounted for USD 28.6 billion, with a trade surplus of USD 4.8 billion. Meanwhile, Australia’s economy faced inflationary pressures, with inflation at 3.7%, interest rates at 4.1%, and rising living costs.
Although both economies adjusted their growth targets downward (by 0.5-1%) due to geopolitical tensions and inflation, bilateral trade still reached about USD 3.7 billion, up 11.1% year-on-year. Viet Nam maintained a slight trade deficit of around USD 129 million.
The trade structure between the two countries remains highly complementary: Viet Nam exports phones, textiles, seafood, fruits and vegetables, and processed products, while Australia supplies key inputs such as coal, wheat, cotton, and metals. In the agriculture, forestry, and fisheries sector alone, trade reached approximately USD 545 million, with Viet Nam posting a surplus of about USD 101 million.
On April 22, 2026, in Dong Thap, Viet Nam’s first shipment of fresh pomelos was officially exported to the Australian market. Photo: Tuan Tran.
However, Australia continues to be one of the most demanding markets, with stringent technical standards and biosecurity requirements. Regulations on pesticide residues, quarantine, and traceability are increasingly strict. In Q1, several agricultural shipments, such as dragon fruit and frozen chili, were flagged for violating chemical residue limits.
In addition, logistics costs have risen sharply: ocean freight rates increased by 25-35%, and shipping times were extended by 7-14 days, directly affecting competitiveness, especially for perishable goods like fruits, vegetables, and seafood.
On a more positive note, the two countries are strengthening cooperation in investment and science and technology. Disbursed FDI in Viet Nam reached USD 5.41 billion in Q1, up 9.1%, with Australia remaining a stable partner, focusing on high-tech agriculture, food processing, renewable energy, and education. Investment trends increasingly emphasize innovation, technology transfer, and sustainable development.
Currently, Australia is implementing more than 260 research projects in Viet Nam, with a total budget exceeding AUD 180 million, aimed at advancing commitments to sustainable agriculture, improving productivity, and enhancing climate resilience.
Blueberries are the seventh fruit imported from Australia into Viet Nam, following grapes, oranges, mandarins, cherries, peaches, and nectarines. Photo: Austrade.
On the policy front, Australia continues to tighten import standards, enhance supply chain transparency, and strengthen biosecurity measures. Meanwhile, Viet Nam is accelerating institutional reforms, improving regulations on land, quarantine, and agricultural production. These changes open up new opportunities but also require businesses to strengthen compliance capacity.
Trade promotion is shifting from pure exports toward investment cooperation and supply chain development. Market expansion by region, particularly in Western Australia, along with the growing role of distribution and retail systems, is helping Vietnamese products reach local consumers more directly.
Overall, Q1/2026 highlights that Viet Nam – Australia agricultural cooperation is expanding in both scale and depth. However, to fully capitalize on these opportunities, Vietnamese enterprises need to focus on improving product quality, strengthening traceability systems, and meeting increasingly stringent international standards. These will be decisive factors for Vietnamese agricultural products to sustain and expand their market share in a demanding yet high-potential market like Australia.
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