by VBF 30/03/2024, 14:37

Ample Opportunities to Elevate Vietnam-Brazil Trade Ties

Through the collaboration and concerted efforts of both Vietnam and Brazil, the untapped potential of this partnership is set to be fully realized and harnessed in the near future.

The overview of conference on Vietnam and Brazil trade ties 

The trade cooperation between Vietnam and Brazil has increasingly established its important role, unveiling immense potential and creating a lot of opportunities for both nations. The Vietnam-Brazil Trade Conference, held on March 21, 2024, served as a testament to the heightened interest of both nations and presented opportunities to bolster economic and trade cooperation, particularly in the agricultural sector. The conference was attended by a significant number of high-ranking officials and business entities.

Mr. Roberto Serroni Perosa, Brazilian Deputy Minister of Agriculture and Livestock, emphasized the importance of a stable and reliable cooperative environment, underpinned by the rational and diverse development of both economies, as the cornerstone for nurturing this partnership. He advocated for the promotion of exports and imports beyond mere merchandise trading to enhance trade cooperation effectively. As per the 2023 data, the bilateral trade value reached an unprecedented US$7.11 billion.

Moreover, given their complementary economic structures, the trade ties between Vietnam and Brazil have ample scope for growth, with a target to elevate the bilateral trade value to US$10 billion by 2025 and US$15 billion by 2030. Each country boasts its unique economic strengths. Vietnam is renowned for exporting agricultural products, textiles and garments, and leather and footwear, while Brazil excels in exporting beef, soybeans, coffee, and ores and minerals. The consumer demand for goods from both countries is on the rise, and businesses on both sides are eager to explore investment cooperation opportunities. Significantly, the signing of many economic and trade cooperation agreements between the two countries has laid a favorable legal foundation, facilitating import, export, and investment activities. This is particularly important to stimulate cooperation and fortify business connectivity in both nations.

Despite the immense potential, the trade relations between Vietnam and Brazil are confronted with substantial challenges. The vast geographical distances pose logistical hurdles, escalating transaction costs. Cultural and linguistic differences can also impede effective communication and cooperation between businesses from both countries. Furthermore, businesses lack comprehensive information about each other’s markets. At the conference, Marco Farani, Brazilian Ambassador to Vietnam, unveiled the potential for cooperation to Vietnamese businesses interested in trade and investment cooperation with Brazil. He assured that Brazil would extend its support to Brazilian investors and businesses in fortifying cooperation with Vietnam and proposed specific measures such as sharing experiences and advanced techniques in the agricultural sector.

Vietnamese Deputy Minister of Agriculture and Rural Development Phung Duc Tien underscored the importance of harnessing the potential for economic cooperation, particularly in agriculture. He emphasized the need for increasing information exchanges and organizing product exhibition events, which are matters of mutual concern.

“Despite accounting for only 12% of the GDP, agriculture still plays an important role in the Vietnamese economy. In 2024, the export value of Vietnam’s agricultural, forestry, and fishery products is projected at US$54-55 billion. With its favorable geographical location, open policies, and a comprehensive and conducive investment environment, particularly in the agricultural sector, Vietnam and Brazil need to create opportunities for information sharing. This will facilitate understanding the needs and strengths of each side, promote trade and investment cooperation, and move towards realizing their commitments to accessing and expanding agricultural, forestry, and fishery markets,” he emphasized.

Tran Thi Lan Anh, General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI), also expressed VCCI’s commitment and efforts to help elevate the bilateral trade value to US$10 billion by 2025. This would be achieved by supporting businesses from both countries in tapping market potential and facilitating trade and investment cooperation.

“As a national representative of the business community, VCCI will strive to support Vietnamese businesses in fostering extensive economic cooperation with Brazil. It can also serve as a bridge to assist Brazilian businesses in conducting business and making effective investments in Vietnam, thereby continuing to nurture the good relations between Vietnam and Brazil,” she affirmed.

Despite the challenges, the prospects for Vietnam-Brazil trade cooperation remain optimistic. With their joint efforts, economic and trade cooperation promises to further flourish and achieve remarkable success in the future.