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PROGRAM FOR THE DEPUTY PREMIER FOR TRIP TOMALAYSIA AND VIETNAM

Thursday 16 April — Friday 24 April 2009

THIS TRIP INCLUDES THE CITIES OFKUALA LUMPUR, HANOI AND HO CHI MINH CITY

Day 1- Thursday 16 April 2009 (Adelaide – Kuala Lumpur). cial II OG ... SA Tim:

1.00pm Travel to Adelaide InternationalAirport

1.30pm Check in at Malaysian Airlinescounter

3.00pm Depart Adelaide for Kuala Lumpur

9.00pm Arrive in Kuala Lumpur Accommodation:Mandarin Oriental

10.30pm

Day 2– Friday 17 April 2009 (Kuala Lumpur)_ ocal 2,i ,.... . PROD.iYA\ 0 AI SA Time

9.00am —9.45am

Meeting with Australia'sAmbassador to Malaysia &Senior Trade Commissioner,Austrade

10.30am

9:45am —10.15am

Meeting with Trade delegates 11.15am

2.00pm —3.00pm

Meeting with the Minister forInternational Trade and Industry,

3.30pm

3.15pm Travel to next meeting 4.45pm

3.30pm —4.30pm

Meeting with KHAZANAH NASIONAL 5.00pm

7.30pm —10.30pm

Host "SA Brilliant Blend" SAPromotion Dinner

9.00pm

.D ay 3–Saturday 18 April 2009 (Kuala Lumpur )

.

SA Time2.00pm

Local Time PROGRA A . NOTES.

12.30pnn Lunch with Chief Minister of Penang

3.00pm —4.00pm

Open Public lecture by University ofAdelaide

4.30pm

5.00pm —6.00pm

Attend cocktail reception with TradeDelegates

Day 4 – Sunday 19 April 2009 (Kuala Lumpur)

Own arrangements

Day 5 - Monday 20 April 2009 (Kuala Lumpur - Hanoi),--

ir.i-i`CAltheiRTiiii, 0,• ,., -11111nri8.00am Check out of Hotel 9.30am

10.45am Depart Kuala Lumpur 12.15pm

1.10pm Arrive in Hanoi Noi Bai InternationalAirport

Accommodation:Sofitel Metropole

3.40pm

7.00pm -10pm

Host Dinner with Australian EmbassyOfficials and Senior AustralianBusiness Group

9.30pm

.local Tim;Day 6 - Tuesday 21 April 2009

. PROGRAM(Hanoi to Ho Chi Minh City)

NOTES SA Time10.00am -11.00am

Meeting with Hanoi People'sCommittee

12.30pm

12.45pm Check out of Hotel4.00pm Depart Hanoi 6.30pm

6.00pm Arrive Ho Chi Minh City Accommodation:Sheraton Saigon

8.30pm

7.15pm -8.00pm

Informal Meeting with AustradeBusiness Development Manager

9.45pm

It Day 7 - Wednesday 22 April 2009 (Ho Chi Minh City)Local Time 1,ROGRA '

, .- - NOTES -- - - A'Time -

9.00am - Meeting with the Australian 11.30am

10.15am Ambassador, Consul General andSenior Trade Commissioner ofAustrade

10.30am - Meeting with officials of the HCMC 1.00pm

11.30am People's Committee

12.O0noon - Media Briefing with local media 2.30pm

12.30pm12.30pm - Host Lunch with Austrade and 3.00pm

-2.00pm Australian Chamber of CommerceVietnam

6.30pm Dinner with New South Australian 9.00pm

Representative

Day 8 - Thursday 23 Apr'l 2009 (Ho Chi Minh City)ROG

10.00am-11.00am

Meeting with Vietnam Chamber ofCommerce and Industry Director

12.30pm

5.30pm Check out of Hotel 8.00pm

5.45pm Depart for Ho Chi MinhInternational Airport

8.15pm

7.00pm Check in at Airport 9.30pm

–....,.. Day 8 –Thursday 23 April 2009 (Ho Chi Minh City)-Local Time

9.05pm,2Giti skrr

Depart Ho Chi Minh City for Sydney 11.35pm

Day 9 – Friday 24 April 2009 (Adelaide)NOTES SA Time

8.15am Arrive Sydney Airport — Transfer

7.45amfrom International to domesticterminal

2.15pm Arrive in Adelaide

Under Section 15 of the Members of Parliament Travel Entitlement Rules, I herebysubmit my travel report for my Trade Mission to Malaysia.

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MALAYSIA Fact Sheet

General information: Capital: Kuala LumpurSurface area: 330 thousand sq kmOfficial language: MalayPopulation: 26.8 million (2007)Exchange rate: AS -I = 2.9098 Ringgit (Dec 2007)

Head of State:HM The Yang Di-Pertuan Agong XIII Al-Wathiqu BillahTuanku Mizan Zainal Abidin Ibni Al-Marhum SultanMahmud Al-Muktafi Billah ShahHead of Government:Prime Minister YAB Dato' Seri Abdullah bin HajiAhmad Badawi

Fact sheets are updated biannually; May and September

Recent economic indicators: 2003 2004 2005 2006 2007(a) 2008(b)GDP (USSIan) (current prices): 110.2 124.7 137.2 156.1 186.5 207.6GDP PPP (US$bn) (c): 253.9 277.6 299.6 327.4 357.4 382.8GDP per capita (US$): 4,409 4.898 5,288 5,914 6.948 7.605GDP per capita PPP (US$) (c): 10,159 10,902 11,544 12,404 13.315 14.023Real GDP growth (% change YOY): 5.8 6.8 5.0 5.9 6.3 5.0Current account balance (US6m): 13,207 14.872 19.994 25,313 26.045 24,272Current account balance (% GDP): 12.0 11.9 14.6 16.2 14.0 11.7Goods & services exports (°J GDP): 107.6 115.4 117.6 117.0 109.6 105.2Inflation (% change YOY): 1.1 1.4 3.0 3.6 2.1 2.4

Australia's merchandise trade with Malaysia Real GDP growth Australia's merchandise exports to Malaysia

Australia's trade relationship with Malaysia (d):

Australian merchandise trade with Malaysia, 2007: Total share: Rank: Growth (yoy): Exports to Malaysia (ASm): 3.151 1.9% 12th 11.2%Imports from Malaysia (ASm): 7.303 3.9% 8th 8.6%Total trade (exports + imports) (A$m): 10.454 2.9% 11th 9.4%

Major Australian exports, 2007' (A$m): Major Australian imports, 2007 (ASm):Copper 461 Crude petroleum 2,450Aluminium 391 Computers

980

Crude petroleum 273 Televisions 420Ferrous waste & scrap 189 Integrated circuits 281'Includes A5319m of confidential /terns, mainly wheat and sugar, 10% of total exports.

Australia's trade in services with Malaysia, 2007:Exports of services to Malaysia (ASm): 1,328Imports of services from Malaysia (A$m): 1,017

Major Australian service exports, 2007 (A$m):Education-related travelPersonal travel excl education

Total share: 2.8%2.2%

527299

Major Australian service imports, 2007 (A$m):671 Transportation296 Personal travel excl education

Malaysia's global merchandise trade relationships:Malaysia's principal export destinations. 2007:

1 United States 15.6%2 Singapore 14.6%3 Japan 9.1%9 Australia 3.4%

Malaysia's principal import sources, 2007:1 Japan2 China3 Singapore11 Australia

13.0%12.9%11.5%2.0%

Compiled by the Market Information and Analysis Section, DFAT, using the latest data front the ABS, the IMF and various international sources.(a) All re.en7 data subject to revisor; ,,loj111F,EIJ forecast: {0) PPP s ourasing power parity; 0..; Total may not add doe to rounding.

SOUTH AUSTRALIA-MALAYSIA RELATIONS

KEY POINTS

• Malaysia is a major trading partner for South Australia. In the 2007-08, two-waymerchandise trade between South Australia and Malaysia was valued at $643million. This was 12% less than two-way trade the previous year.

• Malaysia is South Australia's 6 th biggest export market. Exports, which arevalued at over $456 million, are dominated by refined copper ($262 m). Otherkey exports to Malaysia include lead ($38m), wheat ($34m) scrap steel ($30m)wine ($13 mil), silver ($13m) and wine ($10m).

• South Australia enjoyed a large trade surplus with Malaysia in 2007-08, worth$329 million, 18% less than last period.

• South Australia enjoys a very close relationship with Malaysia, which has beendeveloped through diplomatic, cultural and commercial linkages.

• South Australia and Malaysia have a long history of cultural linkages. The City ofAdelaide and the City of Georgetown, Penang have a long-standing sister cityrelationship.

• The Australia Malaysia Business Council Inc (AMBC) actively promotes bilateraltrade relations between Malaysia and South Australia. AMBC organises tradedelegations to Malaysia on an annual basis.

• Australia and Malaysia are currently negotiating a free trade agreement (FTA).The Government of South Australia provides in principle support to the potentialFTA, but not at any cost. The benefits of such an FTA through enhanced marketaccess must be shown to outweigh any negative effects.

• According to the 2006 Census, 1,219 South Australian residents claim Malaysianancestry.

• In 2007-08 there were 17,705 visitors from Malaysia, who travelled from SouthAustralia or to South Australia during the period. Incoming over 8,600Malaysians over the age of 15 travelled to South Australia in 07/08 (TRAInternational Visitor Survey)

• In 2008, there were 1,779 Malaysian students studying in South Australia,making Malaysia South Australia's third largest source of international students.

Investment

A number of South Australian businesses have established joint ventures in Malaysiacovering agri-food, health, building materials, IT and consulting. Malaysian firms areinvesting in the manufacturing, call centre, construction and hotel industries in SouthAustralia.

The following are some of the South Australian investment / joint venture projects inMalaysia:

• Priority Engineering (SA) partnering with Perodua to provide services andtechnology to the automotive sector

• Petronas (the only Fortune Global 500 company in Malaysia with an annualturnover of US$51b) holds 40% of Santos' LNG project in Gladstone, Old, with atotal project value of US$2.5b.

• Dtex (SA) partnering with Persoft Systems Malaysia to build a new securitycommand centre in CyberJaya, designed to provide managed informationsecurity services to the Malaysian government and major national financialinstitutions

• Fish Protech (SA) partnering with several Malaysian organisations to establishaquaculture farms in Sarawak (East Malaysia) and Malacca (State on the WestCoast of Malaysia)

• The Newell Group (SA) investing in Johor, (a southern Malaysian State) toproduce fibreglass tanks for commercial storage of products, including tanks foruse in the aquaculture industry

• The ICHM Hotel Hospitality School in Adelaide is delivering training in Malaysia inconjunction with the YTL Group.

The following are some of the Malaysian investment / joint venture projects in SouthAustralia:

• YTL Corporation invested about $330 million in ElectraNet, which operates theStates power transmission grid, in late December 2000

• Tropical Canning Company, from Penang invested in SAFCOL, a foodmanufacturer

• Polyaire, manufacturer of air-conditioning products is owned by a Malaysianinvestor

• Chesser House at 91 Grenfell Street was reportedly sold to Malaysian Investorsfor $34.5 million

• The Adelaide Hilton is owned by a Malaysian linked Company

• A small number of Malaysian businesses have invested modest amounts inproperty in the city of Adelaide and its outskirts

Recent Economic Performance and Outlook

Malaysia's economy, now the third largest in South-East Asia behind Indonesia andThailand, has grown steadily since recovering from the Asian financial crisis. GDPgrowth for 2008 is estimated at 5 percent, and the economy grew by 6.3 per cent in2007. The expected slowing in growth takes into consideration the US slowdown, but isotherwise based on continuing global economic growth and high prices for primarycommodities (including crude petroleum and palm oil). The sub-prime fallout in the USfinancial markets has not had an immediate effect on the Malaysian economy.

Malaysia continues to have a large trade surplus (since November 1997). Annualinflation was 2.1 per cent in 2007 and the Malaysian Government preliminary estimateof inflation in 2008 was 2.4 percent. Rising global food and commodity prices aremasked to some extent in Malaysia by a range of price controls on foods andcommodities. The unemployment rate was 3.3 per cent in 2007 and is expected toremain below 4 per cent in 2008.

Malaysia has run a fiscal deficit since 1998, although the Malaysian Government hasreduced the deficit in recent years. The budget deficit was 3.2 per cent of GDP in 2007(down from 5.5 per cent in 2000). The Government's stated aim is to maintain a budgetthat can balance the twin aims of sustaining economic growth and preserving long-termfiscal sustainability. As such, the 2008 Budget sees an increase in budgeted expendituresof 11 per cent over 2007. The expenditure increase in the budget is, in part, financed bythe huge contribution of revenue earned from the oil and gas sector.

Major announcements in the Malaysian Budget 2008 included a further proposedreduction of company income tax to 25 per cent in 2009. This followed theannouncement in the 2007 Budget of a 26 per cent rate by 2008. In the finance sector,the budget provided further incentives aimed at making Malaysia an Islamic financehub. Other priority sectors of the budget include education, agricultural development,housing, security, civil service reform, and reducing the cost of red tape on business.

Migration/Tourism

The 2006 census showed 92,337 Malaysian-born people lived in Australia, an increase of17 per cent from the 2001 census.

Malaysia recorded 277,125 Australian visitors in 2006, while there were 157,600 short-term visitor arrivals from Malaysia to Australia for the year to 31 August 2007, making itour second-largest source of visitors from South-East Asia.

An air services agreement is in place between Australia and Malaysia. In the past year,Jetstar and Malaysian airline AirAsia commenced direct flights between Malaysia andAustralia, adding to Malaysia Airlines direct routes.

Trade Statistics

South Australia's Top Export Destinations 2007/08

United States of America $1,855,013,071.00Japan $899,715,509.00United Kingdom $859,686,786.00China $815,683,291.00New Zealand $564,360,870.00Malaysia (7th ) $456,021,727.00Canada $436,921,321.00Thailand $436,859,973.00Saudi Arabia $427,485,237.00Hong Kong (SAR of China) $284,543,696.00Viet Nam (11th ) $275,660,384.00

South Australian Exports to Malaysia2003/04 $244,611,038.00

2004/05 $332,262,306.00

2005/06 $407,601,179.00

2006/07 $565,543,482.00

2007/08 $456,021,727.00

South Australia's Top Import Sources 2007/08

Singapore $1,279,248,103.00China $997,374,456.00Japan $865,952,307.00United States of America $708,021,882.00Thailand $446,569,035.00Korea, Republic of $335,880,924.00India $218,249,056.00Germany $195,595,886.00Italy $191,728,758.00New Zealand $190,565,041.00United Kingdom $186,960,917.00Malaysia (12th) $186,709,582.00V iet Nam (29th) $34,518,521.00

South Australian Imports from Malaysia2003/04 $126,572,275.00

2004/05 $123,203,389.00

2005/06 $131,188,748.00

2006/07 $161,887,403.00

2007/08 $186,709,582.00

South Australia's Top 10 Export Commodities to Malaysia 2007/08

$262,196,540.00 Refined copper

$35,797,418.00

$34,217,598.00

$30,089,909.00

$13,947,093.00

$13,205,889.00

$10,307,559.00

$6,810,299.00

$5,670,792.00

$4,648,000.00

Unwrought refined lead

Unmilled wheat (incl. spelt) and meslin (excl. durum wheat)

Waste and scrap of alloy steel (excl. stainless steel)

Wine of fresh grapes (other than sparkling wine); grape must with fermentationprevented or arrested by the addition of alcohol

Semi-manufactured or powdered silver (incl. silver plated with gold or platinum)

Combined confidential items excluding some of SITC 28099 (exports only) and someof SITC 51099 (imports only)

Meat of sheep, frozen

Dried, shelled peas

Waste and scrap of cast iron

South Australia's Top 10 Import Commodities from Malaysia 2007/08

$44,727,858.00 Reception apparatus for television, whether or not incorporating radio broadcastreceivers or sound or video recording or reproducing apparatus

$16,841,015.00

$14,786,234.00

$7,856,632.00

$7,579,520.00

$7,393,736.00

$4,582,848.00

$4,181,069.00

$3,948,023.00

$2,277,104.00

Radio broadcast receivers combined with sound recording or reproducing apparatus,not capable of operating without an external source of power, of a kind used inmotor vehicles

Boards, panels, consoles etc for control or distribution of electricity for a voltage notexceeding 1,000 V

Other switches for voltages not exc 1000 volts

Combined confidential items excluding some of SITC 28099 (exports only) and someof SITC 51099 (imports only)

Wood of non-conif species (incl. strips & friezes for parquet flooring, not assembled),contin shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded,rounded) on any edges or faces, whether or not planed, sanded or end-jointed

Wooden framed seats

Herbicides, anti-sprouting products & plant-growing regulators (excl. goods specifiedin Subheading Note 1 to Chap 38 of AHECC (Australian Harmonized ExportCommodity Classification), in forms/packing's for retail sale or aspreparations/articles)

Wood of non-coniferous species specified in heading 247.5, sawn or chippedlengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of athickness exceeding

Wooden furniture used in offices (excl. chairs)

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VIETNAM Fact Sheet

General information: Fact sheets are updated biannually: May and September

Capital: HanoiSurface area: 332 thousand sq kmOfficial language: VietnamesePopulation: 85.6 million (2007)Exchange rate: AS I = 17,100.61 Dong (Jun 2008)

Recent economic indicators: 2003

Head of State:President HE Nguyen Minh Triet

Head of Government:Prime Minister HE Mr Nguyen Tan Dung

2004 2005 2006 2007(a) 2008(b)GDP (USSIan) (current prices): 39.6 45.5 53.0 61.0 70.9 90.9GDP PPP (US$bn) (c): 144.1 159.9 178.1 198.9 221.6 240.6GDP per capita (US$): 490 555 637 723 829 1.047GDP per capita PPP (US$) (c): 1,781 1.949 2,140 2,357 2.589 2,774Real GDP growth (% change YOY): 7.3 7.8 8.4 8.2 8.5 6.3Current account balance (USSm): -1,931 -1,591 -497 -164 -6.992 -10.657Current account balance (% GDP): -4.9 -3.5 -0.9 -0.3 -9.9 -11.7Goods & services exports (% GDP): 59.1 66.7 69.0 73.6 77.0 90.0Inflation (% change YOY): 2.9 9.7 8.8 6.6 12.6 25.0

Australia's merchandise trade with Vietnam Australia's merchandise exports to Vietnam

Australia's trade relationship with Vietnam (d):Australian merchandise trade with Vietnam. 2007-08: Total share: Rank: Growth (yoy):

Exports to Vietnam (ASm): 1,814 1.0% 18th 11.3%Imports from Vietnam (ASm): 5,132 2.5% 11th 13.9%Total trade (exports + imports) (A$m): 6.946 1.8% 14th 13.2%

Major Australian exports, 2007-08 (ASm): Major Australian imports. 2007 .08 (A$m):Gold 625 Crude petroleum 4,187Copper 209 Gold 203Wheat 152 Furniture, mattresses, & cushions 95Aluminium 87 Fruit & nuts 67

Australia's trade in services with Vietnam, 2007-08:Exports of services to Vietnam (ASm}:Imports of services from Vietnam (ASm):

Major Australian service exports, 2007.08 (ASm):Education-related travel 365Personal travel excl education 53

Vietnam's global merchandise trade relationships:

481524

Total share:

1.0%1 .1%

Major Australian service imports. 2007-08 (ASm):Personal travel excl education 382Transportation 75

Vietnam's principal export destinations. 2007:

Vietnam's principal import sources, 2007:1 United States 20.8% 1 China 19.9%2 Japan 12.5% 2 Singapore 12.1°,43 Australia 7,3% 3 Taiwan 11.0%

14 Australia 1.7%

Compiled by the Market Infonmation and Analysis Section, DFAT, using the latest data from the ASS, the WSW and various international sources.

(a .; All re can: data subject tc rev's or; lb) IMF forecast: ;OPP? s purchasing power pan y: Tola• may net aed d..e to roalding.

SOUTH AUSTRALIA-VIETNAM TRADE RELATIONS

KEY POINTS

• Vietnam is considered as an emerging market for South Australia. There areexport growth opportunities in the food, wine, education and training, water,environmental management and services sectors.

• Vietnam formally acceded to the WTO on 11 January 2007, becoming WTO's150th member.

• Vietnam is making progress in implementing its WTO accession commitmentsincluding: adopting implementing legislation; improving transparency of traderegulations; and clarifying consistency of treatment for private companies andstate-owned enterprises.

• According to the 2006 Census, 10,547 South Australian residents were born inVietnam, with another 12,484 claiming Vietnamese ancestry.

• Vietnam ranks number four as a recipient of Australia's Development Assistanceexpenditure including scholarships that are undertaken in South Australianuniversities.

South Australian Merchandise Trade

Vietnam is an important export destination for South Australian products. In 2007-08,Vietnam ranked 11th in importance as a South Australian export destination, buying$276 million worth of goods from the State, representing an decrease of 6 percent fromthe previous financial year. The major export items were refined copper ($209 million),malt ($21 million) and unwrought refined lead ($19 million).

Over the same period, Vietnam ranked 29th in importance as a South Australian importsource, selling $35 million worth of goods to the State, representing a decrease of 17percent from the previous financial year. South Australia's major import items fromVietnam were frozen shrimps and prawns ($7 million), cashew nuts ($5 million) andelectric motors ($4 million)

South Australian companies that export product to Vietnam or import product from Vietnam

Examples of South Australian companies exporting to Vietnam include:

Company ProductJoe White Maltings Pty Ltd MaltOrlando Wines WineCoffey International Development Capacity buildingSoniclean Pty Ltd Ultrasonic cleaning machines

Arturo Taverna International Pty Ltd- t/aArtav Australia

Pharmaceuticals

Trio Hinging Australia Pty Ltd HingesBHP Refined copperCoopers Brewery Limited Beer

Services Exports

Data on services trade at the state level is not comprehensive. The only data that isreadily available is the number of enrolments by Vietnamese students studying onshorein South Australia, and the number of arrivals from Vietnam which are recorded by theAustralian Bureau of Statistics.

Education

There were 1,037 students from Vietnam enrolled in South Australian educationinstitutions in 2008. This represents an increase of 53 percent from the same period in2007. South Australia's market share is seven percent of the national total.

Tourism

In 2007/08 South Australia totalled over 8,500 Vietnamese passenger movements usinginternational flights to and/or from Adelaide Airport, up from 10% in 2006/07. Thisgrowth was a result of significant increase in international seat capacity throughAdelaide over the period.

AUSTRALIA-VIETNAM RELATIONS

Australia established diplomatic relations with Vietnam in February 1973 and has aconsulate general in Ho Chi Minh City. The Socialist Republic of Vietnam is a one-partycommunist state. Around 80 percent of Vietnam's population of 86 million (2008figures) are ethnic Vietnamese. The Vietnam-born community in Australia is estimatedat close to 188,000.

Political Overview

Vietnam is one of the world's few remaining one-party communist states. Politicalpower lies with the Communist Party of Vietnam. Its peak organ, the fifteen-memberPolitburo, holds authority. The Politburo is elected by the Party's Central Committeemade up of 150 members. The Party is led by the General Secretary, currently Nong DucManh.

Trade in Goods and Services

In 2007-08, two-way goods trade between Australia and Vietnam totalled $6.9 billion.Two-way services trade added an additional $1.05 billion.

While the global economic slowdown presents challenges, the longer term outlook forAustralia-Vietnam trade and business relationships remains positive.

Merchandise Trade

Australia's merchandise exports to Vietnam in 2007-08 totalled $1.8 billion,representing a yearly increase of 11 per cent. The increase was driven by growth inAustralian exports of non-monetary gold ($625m), copper ($209m), wheat ($152m),petroleum ($76m) and malt ($62m).

Australia's merchandise exports to Vietnam are very diverse. Apart from the productsmentioned above, they also include paints and pigments, plastic sheeting, wheat, dairyproducts, cereal preparations and live animals.

In 2007-08, Vietnam's merchandise exports to Australia totalled $5.1 billion, a 14 percent increase on the previous year. Crude oil constituted 82 per cent of total exports.Other significant items were gold ($203m), furniture ($95m), fruit and nuts ($67m) andseafood ($60m).

Services Trade

Two-way services trade between Australia and Vietnam in 2007-08 totalled $1.05billion.

Services exports to Vietnam in 2007-08 were worth $481 million. Education and trainingremains Australia's single largest services export, worth $365 million, representing anincrease of over 50 per cent from the previous financial year. Services imports fromVietnam in 2007-08 were valued at $524 million, dominated by tourism-relatedspending ($382m).

Australian Investment in Vietnam

Australian interest in Vietnam as an investment destination is growing, although this hasnot yet resulted in significant increases in the number or value of new Australian-related projects in Vietnam. According to official statistics, Australia ranks 20th inoverall foreign direct investment in Vietnam as at December 2008, with 193 currentlyvalid projects worth a total of US$392 million.

Vietnam has large deposits of oil and gas, and a wide range of exploitable mineraldeposits. Many Australian companies have expressed interest in minerals developmentin Vietnam, but remain concerned by uncertainty in the regulatory environment andfiscal regime.

More generally, over the past five years, the most significant Australian investmentshave involved expansions by established Australian companies, which continue todiversify their operations. Prominent examples include BlueScope Steel, ANZ Bank, QBE,Santos, Qantas and Commonwealth Bank.

The majority of Australian investors in Vietnam operate in Ho Chi Minh City and thesurrounding rapidly-developing provinces of Binh Duong, Dong Nai and Ba Ria-Vung

Tau. Official figures indicate 74 of the 126 Australian invested projects in Vietnam are inthis region.

International trade, investment and remittances

Goods and services exports now constitute around 80 per cent of GDP, 2.5 times higherthan the 30 per cent share recorded in the mid 1990s. Crude oil accounted for 16.5 percent of total merchandise export revenues in 2008, followed by textiles (14.5 per cent).Other major export items include footwear, seafood, timber products, rice, rubber,coffee, cashews, pepper and coal (Source: GSO). With Vietnam's first oil refinerybecoming operational in February 2009, exports of crude oil are expected to decrease.

Vietnam's major imports are machinery and spare parts, refined petroleum products,urea, steel ingots, pharmaceuticals, textile and garment inputs, plastics and chemicals.(Source: GSO). The top five sources of imports in 2008 were China, Singapore, Taiwan,Japan and Korea.Total disbursed foreign direct investment (FDI) in 2008 topped US$11.5 billion. Totalapproved FDI in 2008 was US$64.0 billion, US$60.2 billion of which was from newlyestablished projects and US$3.8 billion from expansion of operational projects. (Source:Foreign Investment Agency, MI31).

The State Bank of Vietnam estimates remittances from overseas Vietnamese in 2008exceeded US$7.8 billion. Remittances in 2009 are predicted to fall with the globaleconomic slowdown.

South Australian Exports to Vietnam2003/04

$70,715,125.002004/05

$105,673,586.002005/06

$151,023,181.002006/07

$292,526,058.002007/08 • $275,660,384.00

South Australian Imports from Vietnam

2003/04

$42,346,259.00

2004/05

$45,721,059.00

2005/06

$35,682,807.00

2006/07

$41,365,748.00

2007/08

I $34,518,521.00

South Australia's Top 10 Export Commodities to Vietnam 2007/08

$208,625,717.00 Refined copperMalt, whether or not roasted (including malt flour)Unwrought refined leadUnmilled wheat (incl. spelt) and meslin (excl. durum wheat)Waste and scrap of cast ironWine of fresh grapes (other than sparkling wine); grape must with fermentationprevented or arrested by the addition of alcoholFrozen edible offal of sheep, goats, horses, asses, mules or hinniesWaste and scrap of alloy steel (excl. stainless steel)Chemical wood pulp, sulphite, semi-bleached or bleached (excl. dissolving grades)Combined confidential items excluding some of SITC 28099 (exports only) and some ofSITC 51099 (imports only)

$20,966,536.00$19,350,375.00$11,639,004.00$1,980,000.00$1,630,599.00

$1,320,262.00$1,110,025.00$962,098.00$868,641.00

South Australia's Top 10 Import Commodities from Vietnam 2007/08

$6,901,620.00 Shrimps and prawns, frozen N$4,902,280.00$3,657,943.00$2,735,144.00$2,335,812.00$2,256,355.00$1,319,968.00

$1,120,840.00$681,368.00$626,728.00

Fresh or dried cashew nutsElectric motors of an output not exceeding 37.5 WCrustaceans, prepared or preserved, n.e.s.Wooden furniture (excl. for office, kitchen or bedroom)Wooden furniture used in bedroomsKnotted netting of twine, cordage or rope; made-up fishing nets and other made-up nets,of textile materialsWooden framed seats, nesSolid or cushion tyres, tyre treads and tyre flaps of rubberFish fillets, frozen