On the occasion of the establishment anniversary of the Brazilian Honorary Consulate General in Ho Chi Minh City, the Vietnam Chamber of Commerce and Industry (VCCI) jointly with the Brazilian Embassy in Hanoi held the seminar “Trade and investment relations between Vietnam and Brazil”. The seminar is aimed at providing information on investment, trade and incentive policies on trade and investment of the Brazilian government, as well as responding to inquiries of Vietnam’s enterprises that have business cooperation with Brazilian counterparts.
Delivering his speech at the seminar, Mr Tran Ngoc Liem, Vice Director of VCCI-HCM, stated that for many years, the trade relations between Vietnam and Brazil have seen strong development. Despite the severe impact of the global economic recession in 2007 and the period after that, bilateral trade between the two countries still maintains growth of 40-50 percent a year. That positive result is attributed to the two countries’ efforts in recovering stable economies and attracting foreign investment. Additionally, Vietnam and Brazil have signed several cooperation agreements, creating legal foundation and favourable conditions for mutual development in many fields, especially in trade and investment.
Believing that bilateral trade relations between Vietnam and Brazil have seen positive improvement, Mr Liem still noted that in comparison with the potential of the two countries, the market share of Vietnam’s product export to Brazil is still very modest. Brazil is a great market with population of over 192 million, income of above average level of the world and reasonable requirements for product quality and price. Those features make Brazil a market with huge potential that Vietnam can promote exports to and investment in.
Brazilian Ambassador to Vietnam, Ms Victoria Alice Cleaver, said that Brazil is the sixth biggest economy in the world, based mainly on exports of coffee, sugar, cocoa, soybean, cattle meat, beef and cigarettes. Besides having advantage on agricultural products, Brazil is also one of the leading countries in production and export of aircraft and oil, telecommunications and software industry. In addition, Brazil is familiar with all stages in the process of producing nuclear power and renewable energy like ethanol and bio-diesel. Brazil is considered a promising land for investors thanks to its huge potential, safe investing environment, sustainable economic growth, high fiscal responsibility, solid legal framework, abundant labour force and reasonable wage and social welfare policies.
The Ambassador also shared that in recent years, trade relations between Vietnam and Brazil have not really been strong and investment cooperation not greater. Nevertheless, there are several fields for the two countries to foster bilateral trade relations, including oil and gas, bio-fuels, agriculture, energy, port and ship building, aviation, chemical industry, fashion and cosmetics. Additionally, Vietnam and Brazil have many things in common. Some examples are large population, competitive agriculture and tropical climate. These common features create opportunities for the two countries to promote cooperation in the future. Recently, quite a few Brazilian enterprises, such as Embraer and Avibras, have shown interest in Vietnam’s market and negotiated to establish relations with Vietnam.
Ms Victoria Alice Cleaver stated: “In the time to come, I will try my best to foster relations between Brazil and Vietnam. Brazil is joining Treaty of Amity and Cooperation in Southeast Asia. This event will mark a turning point in relations between Brazil and other countries in the region through the expansion of cooperation in trade, investment and technology. Therefore I am confident in the expansion of cooperation between Brazil and Vietnam in the future.”
To help Vietnam’s enterprises seek investment partners, Mr Mauricio Alves, Honorary Consul General of Brazil in HCMC, said that all information about Brazil’s enterprises will be posted on the website BrasilGlobalNet. This is the website on trade and investment promotion established by the Brazil’s Ministry of External Affairs to foster global business networks and opportunities, accessible in three languages: Portuguese, English and Spanish. This website aims to help define the possibilities of cooperation between Brazilian companies and potential foreign investors, attract direct investment into Brazil, and promote exports and the internationalization of Brazilian companies. BrasilGlobalNet is currently operating in a network of domestic and international operators of the Ministry of External Affairs of Brazil, including 100 trade promotion chambers in 78 countries and several regions throughout Brazil.
In 2011, Vietnam - Brazil trade turnover reached US$1.4 billion, in which Brazil exports to Vietnam are worth US$794 million and imports from Vietnam worth US$647 million. In the first eight months of 2012, total two-way turnover between Brazil and Vietnam reached US$1.189 billion, up 33.8 percent compared to the same period last year. Products exported from Brazil to Vietnam are mainly soybean and dried soybean, corn, cotton, wood, and tobacco materials. Vietnam's exported products to Latin America's largest economy are mainly shoes, garments, frozen fillet fish, rubber and fibre.
It is predicted that the two countries’ trade relations will develop in the coming months of the year. Bilateral trade turnover between Vietnam and Brazil is expected to reach US$2 billion in 2013.
Thu Thuy
Vietnamese
