Australia and Vietnam are to collaborate on research projects designed to maximise the commercial value of important forestry species.

The two countries signed an agreement in Hanoi which will result in Vietnam receiving A$919,000 for research which aims to domesticate the meliaceae species in South-east Asia and Australia and manage the Hypsipyla robusta pest.

Another project will seek to increase the value of eucalyptus wood by improved sawing methods.

Australia has helped Vietnam introduce many forestry research projects since 1993 and is expected to contribute about A$3m during 2005/06.