Vietnam, Chile Seek to Boost Exports via FTA

However, to bringing the two-way trade turnover to US$2-3 billion in the next five years, the two countries need to realise their FTA commitments right from now.

This is the opinion of Chilean Ambassador to Vietnam Fernando Ayala at the workshop “Vietnam-Chile FTA” organised by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Embassy of Chile in Hanoi on September 10, 2014.

 

Ambassador Fernando Ayala said the Vietnam - Chile FTA affected 9,000 different products of the two countries but the two countries must understand their strengths and competitive advantages to boost exports.

 

"Chile has signed 24 FTAs with many countries in the world. Hence, if Vietnamese goods can penetrate Chile, they are likely to make inroads in other markets in the Union Pacific and Latin America," he said.

 

According to statistics, Vietnam currently accounts for 20 percent of total exports and imports of ASEAN bloc to Chile. Vietnam leads the region in imports from Chile and ranks second in exports to this market after Thailand.

 

Vietnam - Chile two-way trade turnover increased 20 percent a year on average from 2008 to 2013. The value reached more than US$1 billion in 2013. Vietnam’s exports to Chile surged 41 percent in the year. The two countries are gradually balancing their trade.

 

VCCI Vice President Doan Duy Khuong said the economic structures of Vietnam and Chile are complementary. While Chile is strong in minerals and wine, Vietnam can supply coffee, printers, tea, digital cameras, optical instruments and medical equipment.

 

"Seeking out fields and innovative products will provide an opportunity for businesses of the two countries to promote cooperation in the future," he added.

 

Vietnam and Chile started FTA negotiations in October 2008 and formally signed and enforced on January 1, 2014. This is the first FTA Vietnam signed with a Latin American country.

 

The FTA refers to the market access facilitation, rules of origin, sanitary measures, animal and plant quarantine, technical barriers to trade, safeguard measures and bilateral trade cooperation mechanisms. It also facilitates future negotiations in services and investment between the two countries.