Australia and Vietnam have agreed to strengthen their comprehensive strategic partnership, expanding cooperation in defence, maritime security, agriculture, border protection and critical supply chains during Vietnamese President To Lam's official visit to Sydney.

Australian Prime Minister Anthony Albanese and President Lam discussed closer bilateral coordination amid growing geopolitical and economic uncertainty in the Indo-Pacific.

The two sides also agreed to increase cooperation in critical minerals, semiconductors and clean energy, while expressing concern over trade practices that can disrupt global supply chains.

New Maritime Security Agreement

A key outcome of the visit was the signing of a memorandum of understanding between the Vietnam Coast Guard and the Australian Border Force.

The agreement is intended to strengthen cooperation in maritime law enforcement and improve coordination between the two agencies.

A separate agreement was also signed to expand cooperation and mutual assistance between the border forces of Australia and Vietnam.

The agreements come as both countries place greater emphasis on maritime security and maintaining stable sea routes across the Indo-Pacific.

Focus on Peaceful Dispute Resolution

President To Lam said Australia and Vietnam needed stronger dialogue and greater mutual trust as international developments become increasingly complex.

Speaking alongside Albanese, Lam said countries should strengthen dialogue, build trust and protect security, safety and freedom of navigation and overflight.

He also stressed that disputes should be resolved peacefully and in accordance with international law.

The comments come against the backdrop of continuing territorial disputes and strategic competition in the South China Sea.

South China Sea Remains Key Issue

Australia has increased its maritime engagement in the Indo-Pacific and regularly deploys naval vessels and surveillance aircraft in the South China Sea.

Vietnam, China and several other countries have overlapping territorial claims in the region.

In April, Australia joined Canada and the United States in a multilateral transit through the South China Sea, highlighting Canberra's broader approach to maintaining freedom of navigation in contested waters.

For Vietnam, closer cooperation with Australia provides another avenue for maritime law enforcement and regional security coordination.

Trade Ties Continue to Grow

Economic relations were also discussed during Lam's visit.

According to the joint statement, two-way trade between Australia and Vietnam increased 22 per cent year-on-year during the first half of 2026, reaching approximately $8.1 billion.

Vietnam's exports to Australia include electronics, smartphones and garments.

Australia supplies Vietnam with commodities including coal, minerals and natural gas.

The growth in trade has encouraged both countries to explore areas where their economies can become more closely integrated.

Critical Minerals and Semiconductors

Australia and Vietnam also agreed to strengthen cooperation on critical minerals, semiconductors and clean energy.

Critical minerals have become increasingly important to global manufacturing and the development of technologies such as batteries, renewable-energy systems and advanced electronics.

Both countries are looking to diversify supply chains and reduce exposure to disruptions affecting strategic industries.

Cooperation in these areas could create opportunities for investment, technology partnerships and greater integration between Australian resources and Vietnam's growing manufacturing sector.

Agriculture and Border Cooperation

Agriculture and border security were also included in the expanded bilateral cooperation agenda.

The agreements are expected to support greater institutional coordination and mutual assistance between Australian and Vietnamese authorities.

For Australia, stronger ties with Vietnam form part of its wider effort to build relationships across Southeast Asia. For Vietnam, deeper engagement with Australia provides opportunities to expand economic and security partnerships beyond its traditional relationships.

Broader Indo-Pacific Partnership

The latest agreements mark another step in the development of Australia-Vietnam relations following the elevation of their bilateral relationship to a comprehensive strategic partnership.

Both governments are seeking closer cooperation at a time when the Indo-Pacific is facing geopolitical competition, supply-chain disruptions and growing maritime security concerns.

The focus on defence, border security, critical minerals, semiconductors and clean energy reflects an attempt to broaden the relationship beyond traditional trade and diplomatic ties.

The two countries are expected to continue working together on regional security, economic resilience and practical cooperation as they deepen their strategic partnership.