Vietnam’s Ministry of Industry and Trade (MoIT) is taking steps to promote free trade agreement (FTA) negotiations with the Southern Common Market (Mercosur – which includes Brazil, Argentina, Uruguay and Paraguay), which will be he hopes will be a driving force for Vietnam to take advantage of the Latin American market.
In 2022, the South American regional economic bloc recorded more than $12 billion in two-way trade with Vietnam, 9.2% more than the previous year. The Southeast Asian country shipped USD 3.3 billion worth of goods to Mercosur and spent USD 8.7 billion buying products from the region, representing year-on-year increases of 3.4% and 11.6%, respectively.
The Mercosur countries are strong in the production and export of agricultural products, feed, industrial materials and minerals; while Vietnam’s main exports to the bloc are electronic and telecommunications equipment, clothing and footwear. This complementary structure of goods without direct competition is a strong point of Vietnam to approach this market.
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Furthermore, the four South American nations have yet to sign any trade agreements with countries whose export structure competes directly with Vietnam. Consequently, access to this market will be a big boost for Vietnamese goods.
In 2022, the South American regional economic block registered more than 12,000 million dollars in two-way trade with Vietnam, 9.2% more than the previous year
According to statistics from the Ministry, trade between Vietnam and the American continent, which includes 35 countries, including Mercosur member nations, last year amounted to 153.9 billion dollars, which represents an annual growth of 10, 7%,
Of the total, the value of Vietnam’s imports and exports exceeded USD128 billion and USD25.7 billion, up 12.2% and 3% year-on-year respectively, marking a record trade surplus of more than of 102.5 billion USD.
Ta Hoang Linh, Director of the European-American Market Department at the Ministry of Trade and Industry, stated that Vietnamese products can gain a better position in the Americas region and enjoy opportunities to grow stronger when companies capitalize on existing FTAs. .
In the ministry’s scheme, it is key to optimize the 15 existing FTAs and promote the negotiation of new agreements, including that of Mercosur.
Article republished from the Vietnamese state media VNA in the framework of an agreement between both parties to share content. Link to the original article: https://en.vietnamplus.vn/vietnam-promotes-negotiations-of-fta-with-mercosur/250394.vnp
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