Brazil, Vietnam Trade Activities: Time will tell

Brazil, Vietnam Trade Activities: Time will tell

Vietnam Business Forum conducted an interview with Alcides G. R. Prates, Ambassador of Brazil in Vietnam, about trade cooperation between Vietnam and Brazil to commemorate Brazil’s national day (September 7).

1.       Vietnam and Brazil have made many efforts aimed at promoting bilateral trade and economic relations in recent years. However, bilateral trade still remains at a low rate. Could you comment on this situation?

I think we should not get too worked up about this. You see, if one looks at the traditional products of the two countries, we can see distinct similarities. Brazil is the largest world coffee producer and exporter. Vietnam is the second. Brazil used to be the largest exporter of pepper. Now this position has been taken up by Vietnam. Both Brazil and Vietnam are large producers and exporters of cashew nuts and many other agricultural products. The trend also applies to textiles and clothing, shoes, and many other light industry products. A country cannot export everything to every other country, especially if they are far apart as it is the case with our two nations. We have to keep trying, exploring new niches. But this takes time. It also takes carefully-established, long-term relations which we haven’t been able, as yet, to establish on a large scale. But this will happen as there are ample opportunities for diversification. When contemplating the future of Brazil-Vietnam trade relations I always think of what has been happening with Brazil’s trade with your neighbour China. Although China is as far from Brazil as Vietnam is, our trade with China has grown impressively, reaching around US$7 billion in 2003 with growth of 79,8 % in Brazil’s exports to China compared to 2002 and a growth rate of 38,2% in our imports from China.

2.       What should the two countries do to overcome these difficulties?

What we should do is to keep exploring, exchanging information, promoting visits by business delegations and access to the Internet and to sites with information about trade potential, for example, BrazilTradeNet (www.braziltradenet.gov.br) and the Embassy of Brazil’s website in Hanoi (www.brazil.org.vn). All this will make a difference. We should do everything to find out more about each other. This will lead to more trade. Other outstanding efforts include the demonstration flight of Brazil’s regional aircraft EMBRAER 170 last April in Hanoi.

3.       Could you please introduce some key points about the Brazilian market as well as the ways for Vietnamese export enterprises to explore the Brazilian market?

Brazil’s foreign trade has been increasing steadily. In the 12 months ending last June Brazil’s exports reached US$36,7 billion and imports US$33,3 billion.  Both the export and import lists are diversified and I wouldn’t single out any specific product. The best way for Vietnamese enterprises to explore the Brazilian market is by announcing what they wish to export to Brazil and I am sure the Embassy of Vietnam in Brazil can be of great help in that matter. Another instrument is to participate in trade missions like the one I understand VCCI is organising to Brazil this year.

4.       Could you please inform us about policies on tax and investment incentives for Vietnamese enterprises?

The government of Brazil has been applying macro-economic policies that can maintain a long-term stable environment and has been practising a policy of non-discrimination in trade and investment policies. Incentives are offered by the nature of the investment, not by country, and Brazilian authorities are very careful not to break WTO rules in relation to subsidies. Investment in Brazil has been guided on the basis of economic logic. That said, the opportunities are enormous, as it can be proved by the high value of investments Brazil has attracted in the recent past.

• Reported by Thu Huyen