Christopher Luxon’s Vietnam bound – as he faces domestic pressure over minister Andrew Bayly’s resignation

• Prime Minister Christopher Luxon is leading a three-day business delegation to Vietnam.
• Luxon aims to boost trade with Vietnam, targeting $3 billion in two-way trade by next year.
• He’s faced criticism from the Opposition over the resignation of ACC Minister Andrew Bayly after an ‘inappropriate’ incident with a staffer.

The Prime Minister is continuing his Southeast Asian pivot today, as he and a business delegation leave for a three-day tour of Vietnam.

It comes as Christopher Luxon faces criticism from the Opposition over the resignation of ACC Minister Andrew Bayly, after an “animated discussion” with a staffer last Tuesday during which he “placed a hand on their upper arm, which was inappropriate”.

Luxon appears keen to put the issue in his rear-view mirror as he makes for Hanoi this morning in the Defence Force 757 plane.

“Vietnam represents a huge opportunity,” he told reporters yesterday.

Before flying out, he’s speaking to Newstalk ZB’s Mike Hosking at 7.35am. A livestream of the interview will be available at the top of this article.

But Luxon’s trip was cut short before it had even begun after he was forced to cancel a day trip to Indonesia due to “scheduling issues” with President Prabowo Subianto.

Despite the last-minute decision to scrap the Indonesian leg of the trip, Luxon said it was not a snub.

“President [Subianto] had some rather pressing domestic issues to deal with ... which I fully understand and fully respect,” he said, adding the pair were keen to meet again soon later in the year.

Luxon promised the pair would reschedule.

Speaking to reporters yesterday, he remained upbeat about the Vietnam leg of the trip and talked up the importance of the Vietnamese economy to New Zealand exporters.

“This is a huge opportunity for New Zealand – Vietnam is the fastest growing Southeast Asian economy.”

Two-way trade between the two countries is around $2.6 billion a year and – with its economy projected to grow by 6.5% both this and next year – Luxon wants to see that hit $3b by next year.

Luxon said the two countries have had more than 50 years of strong, diplomatic relations but the New Zealand Government wants to lift its level of engagement with Vietnam.

“A real focus for us is growing the economy,” he said, adding that when one in four Kiwi jobs is tied to trade, it makes sense to focus on building better relations with countries like Vietnam.

And he won’t be wooing businesses alone; he is bringing along a 20-strong business delegation to hammer out some deals.

It includes the top brass at the University of Auckland, AUT, Fonterra, Orion Health Group, Silver Fern Farms and Zespri.

But it’s not just business leaders Luxon’s meeting with – the Prime Minister’s sitting down with the top brass of the Vietnamese political class.

That includes Prime Minister Pham Minh Chinh, President Luong Cuong and the General Secretary of the ruling Communist Party, To Lam.

And for good reason – Vietnam’s private and public sectors are closely linked. On previous trips, such as Jacinda Ardern’s 2022 visit, a New Zealand Prime Ministerial visit opened the door for Vietnamese investment into Kiwi businesses.

Last year at the Apec summit in Peru, Luxon announced his plans to focus on Asia this year.

“A big focus for us this year [2024] has been Australia, the Pacific Southeast Asia, and Northeast Asia.

“[In 2026], we’ll focus on India, China and Southeast Asia and we will continue some of the same rhythm as we’ve seen this year.

And the Prime Minister said he was making good on this promise: So far he has visited Malaysia, the Philippines, Thailand, Singapore and now Vietnam – with plans still live to eventually visit Indonesia.

Luxon’s also expressed his interest in visiting China this year, and it’s understood a trip to Beijing is on the cards for the PM later this year.