Ample room for cooperation
During the visit, PM Chinh had a meeting with Brazilian companies to discuss business connection opportunities and joint efforts to create new momentum for economic cooperation between the two countries.
Currently, Vietnam and Brazil are top trading partners of each other in the Southeast Asian and South American regions. In 2022, bilateral trade reached a record high, US$6.78 billion, up 6.6 percent compared with 2021, and triple that of a decade ago.
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| Prime Minister Pham Minh Chinh visits the Embraer Aerospace Corporation headquartered in São José dos Campos city of São Paulo, Brazil – photo: VNA |
“However, bilateral economic cooperation remains incommensurate with political ties between the two countries. Investment is still modest,” PM Chinh said and expressed his confidence that the visit will contribute to strengthening the traditional friendship between the two countries. He believes there’s still ample room for Vietnam and Brazil to expand economic cooperation, bilateral trade and investment.
PM Chinh provided Brazilian companies with brief information about Vietnam and its major socioeconomic development and international integration achievements.
He said that Vietnam is concentrating on improving institutions of the socialist-oriented market economy, accelerating administrative reform, training highly qualified human resources, and upgrading the infrastructure, especially transport and telecommunications infrastructure, to help businesses reduce input costs and enhance competitiveness.
The PM affirmed that Vietnam supports the opening of the Brazilian Chamber of Commerce and Industry’s representative office in Vietnam. He requested businesses of the two countries to increase technology transfer and cooperation for mutual development. The PM also expressed the wish that the two countries expand cooperation in the fields of culture, tourism and sports.
PM Chinh affirmed that Vietnam and Brazil have joined negotiations on free trade, investment protection and double taxation prevention agreements to create favorable conditions for business cooperation. He requested businesses of the two sides to carry out specific cooperation programs and projects, striving to increase bilateral trade to US$10 billion by 2025 and US$15-20 billion by 2030 in a more balanced manner.
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| Seafood is among key Vietnamese exports to Brazil – photo: Thanh Xuan |
Vietnam-Mercosur FTA negotiations to start soon
According to Minister of Industry and Trade Nguyen Hong Dien, the US$6.8 billion trade value between Vietnam and Brazil equals to less than one percent of Vietnam’s trade with the world. Therefore, the room for increased bilateral trade remains large.
Minister Dien believes Brazil can offer a bridge for Vietnamese businesses’ access to the markets of Latin American countries as well as those in the Mercosur (Southern Common Market). Meanwhile, he said, Vietnam can help Brazilian companies’ access to the ASEAN market with a population of more than 650 million and a larger market with 800 million people from member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Minister Dien also shared that Vietnam and the US have upgraded bilateral relations to a comprehensive strategic partnership, and this will enable Vietnam to see a new wave of investment from the US. Therefore, he expressed the wish that Brazilian companies will increase material supply for Vietnam, especially in new industries such as semiconductor technology.
The Ministry of Industry and Trade is accelerating preparations for negotiations on the free trade agreement between Vietnam and the Mercosur – an economic and political bloc consisting of Argentina, Brazil, Paraguay, and Uruguay – to start soon. This October, the ministry will arrange additional staff for the Vietnamese trade office in Brazil, Minister Dien said.
Source: https://ven.congthuong.vn/
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