Australia, Vietnam To Boost Energy, Minerals Cooperation Amid Efforts To Disrupt China's Supply Chain

On Thursday, Australian Prime Minister Anthony Albanese announced that the country was elevating ties with Vietnam to discuss critical minerals amid a push to diversify supply chains away from China.

Australia is a major producer of critical minerals, from smartphones to automobiles, while Vietnam possesses some of the largest untapped deposits in the world.

Australia, Vietnam to Boost Energy, Minerals Cooperation

MELBOURNE, AUSTRALIA - MARCH 06: Australia Anthony Prime Minister Albanese speaks at his final news conference at the ASEAN-Australia Special Summit on March 06, 2024 in Melbourne, Australia. Southeast Asian leaders are gathered for talks that run through today on a wide range of topics, including clean energy cooperation and China's aggressive stance in the South China Sea.
(Photo : Asanka Ratnayake/Getty Images)

In a press conference in Canberra, Albanese said that upgrading their ties to a comprehensive strategic partnership has placed Australia and Vietnam among each other's significant allies.

On Tuesday, Vietnamese Prime Minister Pham Minh Chinh stated that he anticipates Vietnam and Australia to announce an upgrade of their bilateral relations during his current visit, placing the country's ties with Australia at its highest possible level.

According to a joint statement from the two countries, the partnership would help increase cooperation on various issues, including climate, environment and energy, defense and security, economic engagement, and education.

The statement said an annual ministerial dialogue on energy and minerals will push cooperation in their energy and resources sectors, including critical minerals supply chains.

Furthermore, the US has already agreed to increase cooperation with Vietnam on rare earth, whose resources are viewed as an alternate source of minerals. China leads the world in critical mineral extraction and processing with an estimated reserves of 44 million tons.

Communist Party-ruled Vietnam's "bamboo diplomacy" helped navigate rising global tensions last year and enhanced ties with major powers. Along with Australia, Southeast Asia's top allies now include the US, China, India, South Korea, Japan and Russia.

Australia-Laos Relations

On Wednesday, leaders of Australia and Laos signed an agreement strengthening bilateral ties on the last day of a Southeast Asian summit.

Australian Prime Minister Anthony Albanese and his Laos counterpart Sonexay Siphandone co-chair the Association of Southeast Asian Nations' special summit in Melbourne to commemorate 50 years since Australia became the bloc's first external partner.

According to Fox News, the agreement transforms their relationship into a comprehensive partnership that will serve as the foundation for future cooperation on defense, environment, climate, clean energy, agriculture, and education.

This year, Laos, the bloc's poorest country, took over ASEAN's rotating leadership from Indonesia to promote resilience and connectivity. Albanese said that the main themes of Wednesday's discussion would be investment, climate change, maritime cooperation, trade, and clean energy.

China's growing assertiveness in the region and the ongoing violence and humanitarian crisis in Myanmar, as an ASEAN state, have also loomed over the three-day summit.

Political representation for Myanmar has been denied at the meeting over its inability to reduce violence in the nation since a military regime took control in 2021.