The Hon Philip Dalidakis MP - travel report - Indonesia, Vietnam, 27 March - 1 April 2017
|The Hon. Philip Dalidakis MP
|Minister for Small Business, Innovation and Trade
|Date of travel
|27 March - 1 April 2017
|No. of official travel days
|Number of accompanying ministerial staff
|Accompanied by spouse in an official capacity
|Funding for the overseas trip was paid by (list department/s or agency)
|Department of Economic Development, Jobs, Transport and Resources
|Other expenses (includes surface travel and travel allowances)
|Travel cost for minister and staff
*The above costs are not final and complete
Purpose of travel
The purpose of my travel to Vietnam and Indonesia was to promote trade outcomes for Victoria for the International Education, Food and Fibre, Retail and Logistics, and Professional Services sectors, in addition to exploring investment opportunities into Victoria.
Benefits of travel to the State of Victoria
This trip enabled Victoria to expand its government to government links and market position with meetings, events and promotional activities conducted with senior Government officials, businesses, industry associations, and education institutions. In Indonesia, in particular, Ministerial level meetings provided an opportunity to better understand government priorities and potential opportunities for Victoria's professional service, education and training businesses.
Vietnam is the fourth largest source market of international students in Victoria and the State has 44 per cent of the national share of Vietnamese enrolments. The Vietnamese government is focused on boosting the quality of Vietnamese universities to meet growing demand. The expansion and development of the higher education sector will provide partnership opportunities for Victorian providers particularly through joint programs, franchise programs and online courses. Another area that will provide significant opportunities for Victoria's education and training sector is the planned reform of the Technical and Vocational Education and Training (TVET) sector, through initiatives such as the introduction of a National Qualifications Framework, professional development of teachers, quality assurance and accreditation processes and curriculum development.
Vietnam is forecast to become the number two market in ASEAN for Victorian food and fibre exporters over the next decade, both in terms of growth and size. Recent forecast data commissioned by the Victorian Government indicates Victoria has the potential to achieve compound average annual growth in food and fibre exports to Vietnam of over five per cent over the next decade, ultimately contributing an additional $200 million dollars to the Victorian economy annually.
Outcomes of meetings in Vietnam:
- I signed an MoU between the Victorian Government and AusCham Vietnam to strengthen the relationship and expand cooperation. Particular areas of focus include improving the exchange of information and best practices, and fostering collaboration in areas such as food and agribusiness, and education and training. This is the first agreement of its kind that AusCham Vietnam has signed with an Australian government.
- I visited Ho Chi Minh Technical and Economic College (HOTEC) to promote Victorian capabilities in education and training in support of individual bids by three Victorian providers for an English Language and an Automotive Engineering Technology capacity building program. Subsequent to this meeting, I have been informed that Box Hill Institute of TAFE has been selected as the preferred partner for the first project, which will train HOTEC lecturers in Melbourne. At the pitch, I advocated to HOTEC's leadership group, Victorian TAFE's strong capabilities in delivering vocational education training courses, and highlighted our world-leading capabilities in curriculum design and assessment. My meeting allowed our TAFEs to successfully pitch and ultimately be awarded the training contract.
- I witnessed the signing of a Memorandum of Understanding (MoU) between Vina Capital and RMIT Vietnam for the joint sponsorship of a professorial chair. At this event, I also discussed investment opportunities for Vina Capital in Victoria. Vina Capital has $USD1.3 billion in assets under management.
- I met with the International Dairy Products Joint Stock Company focused on future opportunities to introduce more Victorian dairy products into Vietnam. IDP is partnering with Victoria's Pactum Dairy Group (based in Shepparton) to produce drinking milk for Vietnam.
- I hosted a Victorian Connection – Vietnam event in collaboration with AusCham Vietnam and International Alumni Jobs Network (IAJN) which was attended by Victorian alumni, education providers, professionals and individuals that are potential strategic partners for Victoria for business and bilateral engagement.
In the Future Industries International Education Sector Strategy, Indonesia was identified as a priority market for a concerted effort of engagement and activities. By 2024, Indonesia is forecast to be the third highest contributor globally of international students behind India and China, and a majority of Victorian providers have identified Indonesia as a priority market. Vocational education and training also provides opportunities to strengthen the Indonesia-Victoria relationship, with demand for VET skills high.
Indonesia was Victoria's fifth largest market for food and fibre exports in 2015-16, worth $521 million. Over the next decade, Indonesia will represent both the biggest growth opportunity and largest market for Victorian food and fibre exporters across South-East Asia. Indonesia also presents significant opportunities for e-commerce relative to other emerging Asian economies. It is currently estimated to be worth up to $25 billion, and with an expected annual growth rate of 50 per cent, current Indonesian Government projections put the nation's e-market at $130 billion by 2020 (coming third behind China and India).
Outcomes of meetings in Indonesia:
- A discussion with the Minister for Tourism underscored the depth of opportunities available to work together on tourism development and hospitality training, including short-term internship opportunities in Victoria for Indonesian tourism and hospitality students.
- A meeting with the Secretary of the Department for Youth and Sports provided an opportunity to discuss the forthcoming Asian Games and to promote Victoria's capabilities in sports science, international sporting event development and management.
- I met with Indonesia's Chamber of Commerce and Industry (KADIN Indonesia) to discuss how Victoria's vocational and higher education providers can support the group in its work to address skilled labour shortages.
- I witnessed an MoU signing between RMIT University, the Indonesian Logistic Association and two Indonesian universities focused on bridging skills gaps for the logistic and supply chain which will have broader implications for the Victorian education and training sector.
- Together with the Chancellor of Podomoro University, Mr Cosmas Batubara, a former Minister and successful Indonesian entrepreneur, we hosted a Now! In Season campaign event promoting Australian seasonal fruits. Managed by Trade Victoria, in partnership with Austrade and Horticulture Innovation Australia on behalf of industry, NIS is an international marketing campaign designed to increase consumer awareness of premium quality, seasonal Australian horticulture produce (cherries, summer fruit, table grapes, apples, pears, citrus and vegetables) through rolling promotional and education activities for up to ten months of the year. The program is delivered across nine countries including Indonesia, Vietnam, Thailand, Malaysia, the Philippines, China, Japan, UAE, and Taiwan. The program now reaches over 250 retail stores across Asia and the Middle East. The event was also attended by a senior representative from the Almond Board of Australia. The event featured Australian seasonal fruits and nuts as part of the menu served up by over 100 Podomoro University hospitality students.
- I hosted an event for select education alumni, many of whom have gone on to establish their own businesses, who are excellent ambassadors for the Victorian education and training system.
Next steps / Follow up
The Victorian Commissioner for South East Asia will explore several opportunities for collaboration and partnerships with both Vietnam and Indonesia, including:
- Continuing to work closely with HOTEC and other vocational providers in Vietnam to understand skills needs and potential for partnerships.
- Undertaking further discussions with the Indonesian Ministry for Tourism on opportunities to collaborate to develop regional and national TVET programmes for tourism and hospitality including supporting institutional refurbishment, 'train-the-trainer' programmes and curriculum design, amongst others.
- Working with the Indonesian Minister for Youth and Sports to identify specific commercial opportunities for training and consultancy regarding the forthcoming Asian Games.
Invitations to visit Victoria have been extended to KADIN, the CEO of Vina Capital and International Dairy Joint Stock Company, HOTEC and the Department of Education & Training, HCMC.
Page last updated: 23 August 2017