To strengthen relations and economic cooperation between the business communities of Vietnam and MERCOSUR region (a free trade agreement between Brazil, Argentina, Uruguay, Paraguay, Venezuela, Bolivia, Chile, Colombia, Ecuador, and Peru), Vietnam Chamber of Commerce and Industry (VCCI) has collaborated with MERCOSUR-ASEAN Chamber of Commerce to organise a seminar on "Business Opportunities with MERCOSUR" in Hanoi recently.
At the workshop, Pham Thi Thu Hang, Secretary General of VCCI, said Vietnam currently has trade relations with most countries and regions around the globe (more than 220 countries and territories) and is an active member of the international organizations APEC, ASEAN, ASEM, WTO and many international economic cooperation institutions.Two-way trade turnover between Vietnam and other countries and territories worldwide in 2014 reached US$298 billion, an increase of almost 13 percent compared with 2013. And Vietnam's exports reached US$150 billion and imports of US$148 billion.
Ms Hang affirmed Vietnam wants to develop relations of friendship and solidarity with the Latin American countries, and particularly recognizes the importance of trade relations, investment and tourism. Besides good political and diplomatic relationships, Vietnam and Latin America are more conducive to developing economic relations in other areas like mining, oil and gas processing, hydropower, wind power, nuclear energy, bio-products, agriculture and agro-processing.
According to statistics, Vietnam has trade relations with all 33 markets in Latin America. The annual trade turnover between Vietnam and Latin American countries has made great strides; the two-way trade turnover in 2008 was approximately US$2 billion and US$17.5 billion in 2011. In 2014, Vietnam's exports to Latin America reached US$4.7 billion, up 36.8 percent compared with 2013; the Vietnam's imports from Latin America achieved US$4.8 billion, up 44.9 percent. Total two-way trade turnover between Vietnam and 33 countries in Latin America reached US$9.5 billion, up 40.7 percent compared with 2013, which is considered a record growth in trade exchange between Vietnam and the Latin American region.
Vietnam's potential exports to Latin America include shoes, textiles, electronic products, refrigeration appliances, rubber, electric motors, optical equipment, rice, coffee, and coal. In contrast, Latin America is increasingly exporting raw materials to the world, especially to the developing countries with export-orientation like Vientam. Vietnam is currently importing from Latin America some items of textile materials, leather, footwear, iron and steel scrap, plastic materials, secondary raw materials, soybeans, and cotton.
Ms Hang said, despite certain results, the trade relations between Vietnam and Latin America are still low compared to the potentials and desires of the two sides. Besides the trade turnover with traditional partners such as Cuba, Brazil, Argentina, Chile and Venezuela, trade relations between Vietnam and the countries of Latin America remain modest. According to Hang, this is mainly due to language barriers, geographical distance, communication, and limited understanding of each other's markets. The enterprises of Vietnam and Latin America also have fewer opportunities to interact directly due to high market research costs.
MERCOSUR is a very important region in Latin America with a free trade agreement between Brazil, Argentina, Uruguay, Paraguay, Venezuela, Bolivia, Chile, Colombia, Ecuador, and Peru. MERCOSUR is the world's fifth largest economy and one of the leading manufacturers of food, raw materials and energy. According to statistics, the total GDP of the region is up to US$3.300 billion accounting for 83 percent of total gross domestic product of South America and the intra-regional trade reaches nearly US$62 billion.
For Vietnam, the countries of MERCOSUR have the biggest trade turnover in the Latin American region. Specifically, Brazil is the country with the largest trader of Vietnam with total turnover in 2014 of over US$3.3 billion, followed by Argentina, with nearly US$1.9 billion, Chile was ranked fourth in the region with total turnover of US$890 million which accounts for over one half of the total trade turnover between Vietnam and all 33 countries of Latin America.
"Through this workshop, businesses hope Vietnam will understand more about the business environment in the MERCOSUR and potential, opportunities to develop cooperation between the two sides. VCCI is willing to coordinate with the business promotion organizations in Latin America for the development of cooperative relations between the business community," said Hang.
According to Rodolfo Caffaro Kramer, Chairman of the MERCOSUR - ASEAN Chamber of Commerce, the governments of MERCOSUR always appreciate the relationship and want to enhance economic cooperation and development with ASEAN, including Vietnam in accordance with principles of integration, trust, and public-private partnerships. To achieve this goal, the two sides still have much work to do; however, MERCOSUR is committed to creating favorable conditions for the business community of both parties.
In the framework of the seminar, VCCI and MERCOSUR Chamber of Commerce in Asia signed a cooperation agreement to further promote cooperative ties in trade, investment and tourism in the future.
Anh Mai
Vietnamese
