VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE
FACULTY OF ECONOMICS AND RURAL DEVELOPMENT
****************************
TRADE AND DEVELOPMENT (KTE03004)
Title of topic: “ Policies affecting Australia trade”
TEAM NUMBER: 07
CLASS OF: K63KTNNE&K63KTTCE Team member: 3 members
1. Nguyen Khanh Huyen – Student No: 634646 2. Hoang Linh Anh – Student No: 635301 3. Nguyen Thi Yen – Student No: 634982 Hanoi, 10/2020 CONTENTS I.
A GENERAL INTRODUCTION TO AUSTRALIA AND IT’S TRADE.......... 3
1. Religion ................................................................................................................. 3
2. Culture .................................................................................................................. 3
3. Information Technology ....................................................................................... 4
4. Transportation ....................................................................................................... 4
5. Foreign affairs ....................................................................................................... 4
6. Political ................................................................................................................. 5
7. Economy ............................................................................................................... 5
II. POLICIES OF AUSTRALIA.................................................................................. 5
1. Policy to facilitate business environment ................................................................ 5
2. The Australian Government's macro policies also create a safe and efficient
business and investment environment ......................................................................... 6
2.1. Monetary policy ................................................................................................ 6
2.2. Fiscal policy ...................................................................................................... 7
2.3. Maintaining low interest rates .......................................................................... 7
2.4. Economic linkages / export market expansion:................................................. 7
III. IMPACTS OF POLICIES ..................................................................................... 7
IV. CONCLUSION: ...................................................................................................... 9
V. FREFRENCES .........................................................................................................10
Policies affecting Australia trade Page 2
I. A GENERAL INTRODUCTION TO AUSTRALIA AND IT’S TRADE 1. Population:
- It is the largest country in Oceania and the world's sixth-largest country by
total area. The population of 26 million is highly urbanised and heavily
concentrated on the eastern seaboard. 2. Culture:
- It is a country with a long-standing culture, unique and deeply national
identity. Australia's traditional cultural basis is the Aboriginal culture, one of
the oldest cultures in human history. On 11/26/1788 Captain Arthur Philip
took 750 people from England to exile to Australia, officially bringing the
British to settle and colonize. (Nguyễn Thị Kim Ngân, Tổng quan về thị
trường của Ustralia và chính sách thương mại của Australia, toc.123doc.net)
3. Information Technology:
- Australia is considered as one of the countries with strong infrastructure and
modern information technology infrastructure system in the world. The
information and communication technology sector also provides services.
Reliable and very competitive price. Australia has a wide range of
information networks connecting all regions of the country to North
America and Europe by cable and satellite lines. (Nguyễn Thị Kim Ngân,
Tổng quan về thị trường của Ustralia và chính sách thương mại của
Australia, toc.123doc.net) 4. Transportation:
- In terms of transportation, the network of domestic roads, including
motorways and railways, plays an important role in the Australian
economy.The system of routes includes 54439km of railway, 811603 km of
expressways, 2000km of waterways, 28680km of gas pipeline, 240km of
Policies affecting Australia trade Page 3
liquefied petroleum pipeline, 4773km of oil ... Major seaports include
Brisbane, Dampier, Fremantle, ... (Nguyễn Thị Kim Ngân, Tổng quan về thị
trường của Ustralia và chính sách thương mại của Australia, toc.123doc.net)
5. Foreign affairs:
- In foreign affairs, Australia is a member of most important international
cooperation organizations and mechanisms, including the US, WTO, APEC,
OECD, ASEAN, UNESCO, PO, SPC, SPREP, and prosperity.
Commonwealth. Politically, the Commonwealth of Australia is a
constitutional monarchy with the head of the British Queen Elizabeth II.
The leadership system is undertaken by three interrelated powers:
Legislative, executive and judicial. (Nguyễn Thị Kim Ngân, Tổng quan về
thị trường của Ustralia và chính sách thương mại của Australia, toc.123doc.net) 6. Political:
- Politically, the Commonwealth of Australia is a constitutional monarchy
with the head of the British Queen Elizabeth II. The leadership system is
undertaken by three interrelated powers: Legislative, executive and judicial.
(Nguyễn Thị Kim Ngân, Tổng quan về thị trường của Ustralia và chính
sách thương mại của Australia, toc.123doc.net) 7. Economy:
- Australia's economy is a thriving economy with a GDP of approximately
1,000 billion VND, ranking 14th in the list of developed countries by
nominal GDP, 18th by GDP by PPP method. ranked 4th in the United
Nations in 2008 for human development and 6th in the Economist on the
quality of life index worldwide in 2005. The Australian economy develops
according to the Western economic model, is dominated by the service
Policies affecting Australia trade Page 4
sector (accounting for 68% of GDP), followed by agriculture and mining (10% of GDP).
- With rich natural resources, Australia is a major exporter of agricultural
products, especially grain and wool, minerals, including metals, coal and natural gas.
- Australia is the largest export market of Japan, China, the United States and
New Zealand. Australia has an abundant workforce. Over the past decades,
Australia has always maintained the inflation rate at 2-3% and the basic
interest rate of 5-6%. The service sectors of the economy, including
tourism, education and financial services, contribute 69% of GDP. (Nguyễn
Thị Kim Ngân, Tổng quan về thị trường của Ustralia và chính sách thương
mại của Australia, toc.123doc.net)
II. POLICIES OF AUSTRALIA
1. Policy to facilitate business environment:
The Australian Government implements a lot of policies to facilitate the business
environment, support SMEs, and support exports through institutions and policies, including:
1.1. Implementing economic diplomacy, supporting export and overseas investment.
(Hồ sơ thị trường Ô-xtrây-li-a,ngkt.mofa.gov.vn)
1.2. Supporting exporters through the establishment of agencies / organizations such
as the Australian Trade Authority (Austrade), the Center for International Agricultural
Research (ACIAR), the Financial Assistance Fund for Exporters Australia (EFIC),
Export Market Development Fund (EMDG) ... These agencies are responsible for
assisting Australian businesses to export, such as guiding the formulation of export
plans, financial support for exports, building a network of Australian exporters,
establishing relationships with foreign importers, assisting businesses in managing
risks in their export activities, supporting businesses with export turnover or initial
Policies affecting Australia trade Page 5
projects. Investment abroad with a turnover of 150 million AUD / year or more,
supporting small businesses to export agricultural products ... (Hồ sơ thị trường Ô-
xtrây-li-a,ngkt.mofa.gov.vn)
1.3. Supporting SMEs through policy (i) Simplifying administrative procedures; (ii)
Improving business environment, supporting SMEs; (iii) Strengthen SME capacities
through Industry Skills Training Fund and Entrepreneurship Program to support
business management, link research and commercial ideas. (Hồ sơ thị trường Ô-xtrây-
li-a, ngkt.mofa.gov.vn)
1.4. Support to find financial resources, reduce research and development tax, support
labor recruitment, support human resource development training ... (Hồ sơ thị trường
Ô-xtrây-li-a, ngkt.mofa.gov.vn)
2. The Australian Government's macro policies also create a safe and efficient
business and investment environment:
2.1. Monetary policy:
The Australian Government advocates for a monetary policy that both ensures the
contribution to the medium-term inflation target and does not need to limit economic
activities. Interest rates and exchange rates need to support sustained economic
growth. Sustainable growth is always associated with maintaining inflationary
pressures under control. When considering inflationary pressure in addition to
important indicators such as quarterly GDP growth, wage index, credit growth rate,
tax rate, export and import growth, Australia often focuses on to the fluctuation of the
Producer's Price Index, also known as the Producer's Price Index (PPI). (Hồ sơ thị
trường Ô-xtrây-li-a, ngkt.mofa.gov.vn)
2.2. Fiscal policy:
The Australian Government has always prioritized programs to create jobs and help
economic growth. To support investment incentives, the Government regularly
introduces support packages by cutting taxes to create jobs and promote SME growth,
such as: reducing income tax for businesses. turnover less than 2 million AUD,
Policies affecting Australia trade Page 6
withholding tax when buying corporate assets ..., salary subsidies for new employees
admitted to work in enterprises for the first 6 months, supporting job creation for the
bar year ... (Hồ sơ thị trường Ô-xtrây-li-a , ngkt.mofa.gov.vn)
2.3. Maintaining low interest rates:
To encourage domestic investment, to stimulate household consumption demand,
including lending for real estate investment, one of the driving forces of growth in the
near future. Here, Australia always maintains low interest rates. (Hồ sơ thị trường Ô-
xtrây-li-a, ngkt.mofa.gov.vn)
2.4. Economic linkages / export market expansion:
In recent years, the Australian Government has actively negotiated and signed Free
Trade Agreements with important partners. Thanks to these agreements, Australia's
potentially strong exports such as mining, energy and agriculture make it easier to
access FTA markets. (Hồ sơ thị trường Ô-xtrây-li-a, ngkt.mofa.gov.vn)
III. IMPACTS OF POLICIES:
Australia is continuing to transform to become a dynamic, open-ended
economy and strongly participate in global trade and the Asia-Pacific region.
With a unique competitive advantage in the fields of mining and agriculture,
over a century, Australia is developing new competitive centuries to become an
international stumbling block of innovative products and services. (Theo Bộ
Công Thương, Nền kinh tế Úc, amp.vn)
In 2004, Australia's trade accounted for only 1.1% of total global trade. As a
result, Australia is not an economy capable of affecting world market prices
except for a few items where Australia is a major producer in the world. (Theo
Bộ Công Thương, Nền kinh tế Úc, amp.vn)
Australia's trade in goods and services fell 1.8% to A $ 309.8 billion in 2003-
2004 with a total trade balance deficit of A $ 23.4 billion, an increase of 4.5.
Policies affecting Australia trade Page 7
Billion A $ compared with a deficit of 18.8 billion A $ in 2002-2003. An
increase of 1.6% in export volume was offset by a 5% decline in export prices
in 2003-2004, which reduced Australia's exports in 2004 by 3.3% to A $ 143
billion. (Theo Bộ Công Thương, Nền kinh tế Úc, amp.vn)
Import turnover increased by 0.1% to A $ 167.3 billion in 2003-2004 mainly
because the 12% increase in import volume was partly offset by a 10%
decrease in import price. In 2003-2004, Australia's import turnover grew twice
as much as the average growth rate of 5.8% over the past five years. (Theo Bộ
Công Thương, Nền kinh tế Úc, amp.vn)
3.1. Trade in goods:
❖ Australia's trade with the North A region usually accounts for about 35%
of the country's total merchandise trade (41% of exports and 29% of
imports). In 2003-2004, trade with this region decreased by 1.2% to
reach A $ 85.6 billion, while trade with Southeast Asia - region
accounted for 14% of the total. Australia's trade turnover (13% of
exports and 13% of imports) - down 5% to A $ 32.8 billion. (Theo Bộ
Công Thương, Nền kinh tế Úc, amp.vn)
3.2. Domestic production:
❖ In the past 10 years, service income has accounted for 46% of GDP. The
non-service sectors account for 33% of GDP. In the past 10 years,
service income has accounted for 46% of GDP. The non-service sectors
account for 33% of GDP. (Theo Bộ Công Thương, Nền kinh tế Úc, amp.vn) 3.3. Service:
❖ Australia's service sector has grown significantly in recent decades. This
sector encompasses a large variety of economic activities. Services
accounted for about 47% of GDP in 2003-2004 and had a growing
Policies affecting Australia trade Page 8
export turnover, at an average rate of 10.3% per year over the past 20
years. (Theo Bộ Công Thương, Nền kinh tế Úc, amp.vn)
❖ Export turnover reached a record 33.9 billion A $ in 2003-2004, an
increase of about 4.7% from 2002-2003 and 0.8% from 2000-2001, the
year of the Olympics. Olympic Assembly. In 2003-2004, services
exports accounted for about 24% of Australia's total exports. (Theo Bộ
Công Thương, Nền kinh tế Úc, amp.vn)
❖ Australia's growth in the services sector is largely due to the growing
demand for new and complex services such as the application of new
technologies to meet this demand, especially in the financial services
sector. main, business, transportation, telecommunications and
entertainment. (Theo Bộ Công Thương, Nền kinh tế Úc, amp.vn)
3.4 Manufacturing and manufacturing:
❖ In 2003-2004, Australian manufactured exports accounted for 16% of
total exports of goods and services, down 5.5% from the same period
last year, much lower. with average annual growth over the past 5 years.
(Theo Bộ Công Thương, Nền kinh tế Úc, amp.vn)
3.5 Economic outlook:
❖ The federal government estimates that the economy will grow 3% in
2004-2005, down from the projected 3.5% of the 2004-2005 budget and
4% in 2003-2004. (Theo Bộ Công Thương, Nền kinh tế Úc, amp.vn)
❖ The labor market is expected to remain stable during 2004-2005 with a
labor force growth rate of 2% and an unemployment rate of around
5.5%. Inflation will remain as low as 2.25% within the expected range
of the Federal Reserve Bank of Australia, up only slightly from 2% in
the 2004-2005 budget due to high oil prices. (Theo Bộ Công Thương,
Nền kinh tế Úc, amp.vn) IV. CONCLUSION:
Policies affecting Australia trade Page 9
- Overall, Australia is one of the large open and highly competitive
economies partly due to strong growth and low inflation. V. REFERENCES:
* Vietnamese:
1. Nguyễn Thị Kim Ngân, Tổng quan về thị trường của Australia và chính sách thương
mại của Australia, truy cập ngày 10/10/2020, tại:
https://toc.123doc.net/document/618898-chuong-1-tong-quan-ve-thi-truong-cua-
australia-va-chinh-sach-thuong-mai-cua-australia.htm?
fbclid=IwAR1U7BVge7vEwZVwABj6ulm5MHjE5GKZfS66FIozgGl- pLiitMNzWYE095s
2. Hồ sơ thị trường Ô-xtrây-li-a, Một số nét chính về chính sách kinh tế, thương mại ,
truy cập ngày 10/10/2020, tại:
https://ngkt.mofa.gov.vn/ho-so-thi-truong/uc/
3. Nền kinh tế Úc, truy cập ngày 10/10/2020, tại:
https://www.amp.vn/nen-kinh-te-uc.html?
fbclid=IwAR0cddgoV_8GZxtx6MchgPSGdvE0lkueM4HiwCLgrDgtjWHe5JelOaiU8 Os
Policies affecting Australia trade Page 10