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| Meeting with the President of Brazil, Prime Minister Pham Minh Chinh asked Brazil to support and promote the early launch of FTA negotiations between Vietnam and the Mercosur bloc. (Source: VGP) |
Mercosur is the 5th largest economic bloc in the world, consisting of 4 countries: Brazil, Argentina, Uruguay, Paraguay, is the 5th largest economic bloc in the world, therefore, this is a very potential market area for consumer goods which are Vietnam's export strength.
Although 15 FTAs with over 60 major economies are being effectively implemented, expanding export markets, increasing tariff incentives, and facilitating trade, Vietnam has considered negotiating a free trade agreement (FTA) with the Southern Common Market to turn this FTA into a driving force to exploit the Latin American market.
In 2022, Vietnam's two-way trade with four South American markets will reach more than 12 billion USD, up 9.2% over the same period. Of which, Vietnam's exports will reach more than 3.3 billion USD, up 3.4%; imports will reach 8.7 billion USD, up 11.6%.
Including the Americas, two-way trade reached an impressive figure of 153.9 billion USD, up 10.7% compared to 2021. Of which, Vietnam's exports exceeded 128 billion USD, up 12.2%; imports reached 25.7 billion USD, up 3%, bringing the trade surplus with the Americas to more than 102.5 billion USD...
According to the Ministry of Industry and Trade, Mercosur countries have strengths in producing and exporting agricultural products, animal feed, industrial raw materials, and minerals, while Vietnam's main export products to Mercosur are electronic equipment, telecommunications, textiles, footwear, etc.
The complementary and non-directly competitive commodity structure is also a strength of Vietnam in getting closer to this market.
Currently, Mercosur countries do not have any preferential trade agreements with countries whose export commodity structures directly compete with Vietnam's, so access to this market will create a big boost for our country's goods.
In contrast, Mercosur is one of the leading producers of food, raw materials and energy, and is an import destination for Vietnamese manufacturing industries. Trade flows between Mercosur and Vietnam account for nearly a quarter of total trade flows between Mercosur and ASEAN.
Promoting the early start of FTA negotiations between Vietnam and the Southern Common Market was emphasized by the head of the Vietnamese Government, Prime Minister Pham Minh Chinh, during his meeting with Brazilian President Lula Da Silva in Hiroshima, Japan on the afternoon of May 21. The Prime Minister asked Brazil to support and promote the early start of FTA negotiations between Vietnam and the Mercosur bloc.
"Vietnam is ready to act as a bridge to strengthen relations between ASEAN and Brazil as a sectoral partner, between ASEAN and the Mercosur bloc," the Prime Minister emphasized.
For many years, Brazil has been Vietnam's largest trading partner in Latin America, with trade turnover in 2022 reaching a record 6.78 billion USD.
Currently, Vietnam has completed the internal review related to the FTA negotiations with Mercosur, hoping that the two sides will soon start negotiations to sign this Agreement, facilitating trade and investment between Vietnam and member countries in the Bloc.
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