Formal defense relations between Australia and Viet Nam were established in February 1999, with the opening of a Defense Attaché Office at the Australian Embassy in Hanoi. Viet Nam's first Defense Attaché to Australia took up his appointment in Canberra in September 2000.

 The Australian Minister for Trade, Warren Truss and the Vietnamese Minister of Planning and Investment, HE Vo Hong Phuc, co-chaired the 7th Australia-Vietnam Joint Trade and Economic Cooperation Committee on 16-17 July in Canberra.  The Ministers issued a Joint Communiqué.

In 2005-2006, two-way goods trade between Australia and Vietnam totaled $5.08 billion. Two-way services trade added an additional $669 million

Services exports to Vietnam in 2005 were worth A$225 million. Education and training remains Australia's single largest services export, worth A$137 million per annum. Services imports from Vietnam in 2005 were valued at A$390 million, dominated by tourism-related spending (A$276m).

Of all the English-speaking countries in the world, Australia welcomes the largest number of students from Vietnam. There are currently some 7,200 students from Vietnam studying in Australia, and an estimated of 8000 more studying Australian education and training courses in Vietnam.

Vietnam's rapid economic growth over recent years has led to large demand for imported goods, creating significant opportunities for Australian exporters of metals, wheat, dairy produce, machinery, petroleum-based products and live animals

Australia's total overseas development assistance to Vietnam in 2006-07 is estimated at $81.5 million. Amongst 40 donor countries and agencies in Vietnam, Australia consistently ranked among the top ten bilateral donors in 2006-07. Vietnam is Australia's fourth largest development partner after Papua New Guinea, the Solomon Islands and Indonesia.

In late November 2006, Australian budget carrier JetStar undertook its first direct Sydney-HCMC flight. JetStar now flies this route three times a week.

In April 2007 QANTAS signed an investment agreement with the State Capital Investment Corporation (SCIC), the investment holding arm of the Vietnamese Government, to purchase a 30 per cent share in Vietnam’s second largest airline, Pacific Airlines.