5:45 am today

Why we want to be mates with Vietnam

5:45 am today
NZ PM Christopher Luxon and Vietnamese PM Pham Minh Chinh from the official welcome ceremony and guard of honour in Hanoi.

NZ Prime Minister Christopher Luxon and Vietnamese PM Pham Minh Chinh during a visit to Vietnam in February. Photo: RNZ / Giles Dexter

Vietnam is one of the fastest growing economies in the world, and is making trade connections at pace, including with New Zealand.

It's cheap, it's unspoilt, and the food is spectacular.

Vietnam is one of the hottest travel destinations on the planet right now, with its international tourist numbers climbing by 43 percent last year.

From September it will be easier for Kiwi travellers to get there, with budget airline Vietjet starting flights between Auckland and Ho Chi Minh City.

But our closer connections are not just about tourist dollars, or Vietnamese students heading to universities here.

On his recent trip to Vietnam, Prime Minister Christopher Luxon signed a Comprehensive Strategic Partnership deal that should pave the way for businesses to enter that flourishing market.

It rides a wave of increasing ties - since 2017 our two-way trade has grown by 123 percent, and Vietnam is now our 14th largest trading partner.

"Vietnam is probably one of those countries that doesn't get talked about enough," says Plant and Food Research chief executive Mark Piper.

He was on that trade trip with the Prime Minister, looking at the research organisation's five-year Viet Fruit programme, which is currently concentrating on passionfruit growing.

"It's effectively looking to help production and post-harvest," he says.

"So, increased productivity - how do they get more off the land; resilience - insects or other diseases that might affect passionfruit as well as what happens after it's picked; and then training to make sure that continues. A lot of passionfruit [farming] is smaller holder farmers, so a lot of education."

The passionfruit project comes on the heels of a similar one on dragon fruit, where our scientists helped develop different varieties. One of those varieties is now being grown in Northland, and as the climate changes, the possibilities for more sub-tropical horticulture increase.

Dragon fruit "started off as a purely 'how do we support the people of Vietnam as part of our free trade agreement and being a good partner?' and has evolved into something that has potential commercial upside for New Zealand," says Piper.

Researchers work alongside local organisations in Vietnam, and their mission has been very well received. As well as that, our scientists learn quite a bit, "but they also really love the fact that they get to help small holder farmers improve their livelihoods as well. If you talk to people who are working in it, they are really buzzing when they come back," he says.

RNZ political reporter Giles Dexter was also on the PM's trip and talks to The Detail about what the gains are likely to be from a better relationship with one of the few remaining Marxist-Leninist countries in the world.

The trip was essentially to renew some friendships, he says.

The first political leader to visit New Zealand after Luxon was elected was the Prime Minister of Vietnam, so this was a reciprocal gesture.

"They went to sign a Comprehensive Strategic Partnership which is very corporate speak for basically a big, paper, fancy handshake," he says.

Christopher Luxon participates in a cooking demonstration at Fonterra's headquarters in Ho Chi Minh City.

Christopher Luxon participates in a cooking demonstration at Fonterra's headquarters in Ho Chi Minh City. Photo: RNZ / Giles Dexter

"First there was a Strategic Partnership, then there was a Comprehensive Partnership, and now there's a Comprehensive Strategic Partnership.

"These are all things that go on in the background... these are all things that are done by MFaT, diplomats... then it's the Prime Minister of the day that gets to be the one that signs the dotted line and gets all the publicity.

"Really it's a commitment to being really, really good mates.

"A lot of it is just about access.

"There were some businesses who were saying to me that they really want to get into the Vietnamese market ... without the partnership, the Vietnamese government would not give them the time of day.

"It doesn't really give us anything in the realms of trade or defence or anything like that."

We are the 10th nation to sign such a deal, and the seventh in the past three years, including agreements with China, the US and France; and last year, Australia.

"Vietnam is all too painfully aware of what it's like to choose sides," says Dexter.

"And right now they don't want to choose sides. They want to sign deals with everyone so should the worst happen, they come out on top somehow."

Check out how to listen to and follow The Detail here.

You can also stay up-to-date by liking us on Facebook or following us on Twitter.