Trade with Colombia and Chile enhanced

Direct trade exchange between Vietnamese and Colombian businesses - photo: Ministry of Industry and Trade

A gateway to Latin American markets

Seventeen Vietnamese enterprises visited Colombia and Chile from September 26 to October 3 with a view to further tapping into the Pacific Alliance markets, comprising Chile, Colombia, Mexico and Peru, and others in Latin America. The trip was part of a series of business matching events under the 2023 national trade promotion program held by the Ministry of Industry and Trade (MoIT).

Deputy Minister of Industry and Trade Do Thang Hai expressed his hope that as an active member of the Pacific Alliance, Colombia will act as a bridge helping Vietnamese goods enter Latin America, including member countries of the alliance. In return, Vietnam is ready to pave the way for Colombian goods to expand presence in the Association of Southeast Asian Nations (ASEAN) countries and the Asia-Pacific as a whole, Hai remarked.

He said Colombia is currently the fifth largest Latin American trade partner of Vietnam, and the two sides target bilateral trade of US$1 billion by 2025. The General Department of Vietnam Customs’ data show that the Vietnamese-Colombian trade hit US$742 million in 2022, an increase of 11.4 percent over 2021. Vietnam mainly exported phones of all kinds and components, fibers and yarns of all kinds, machinery, equipment, tools and spare parts, computers, seafood, and textiles and garments, and imported textile-garment and leather and footwear materials, wood and wood products, plastic materials, foods and foodstuffs, and pharmaceuticals.

The two countries' economies are complementary and they hold much potential to become entrepôts of cargo and investment flows connecting with others in the regions and the world, Hai said.

Huge potential for Vietnam-Chile economic cooperation

Vietnamese Ambassador to Chile Pham Truong Giang noted that bilateral economic and trade ties have been flourishing and producing positive results over the past years. Vietnamese goods are becoming increasingly popular in this market thanks to good quality, diverse designs, and relatively competitive prices thanks to preferential treatment under the Vietnam-Chile Free Trade Agreement (VCFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

According to the General Department of Vietnam Customs, the bilateral trade value reached US$2.15 billion in 2022 (up nine percent from the previous year), including Vietnam's exports worth US$1.72 billion (up 4.1 percent) and the country’s imports worth US$431.9 million (up 34.3 percent). It has almost quadrupled since 2013 before VCFTA took effect on January 1, 2014.

Ambassador Pham Truong Giang held that considering the two market sizes and openness to international trade, much room remains for economic, trade, and investment partnerships to develop on par with potential. To facilitate bilateral trade and investment, apart from the Governments’ will and policies, it is critically important to enhance the connectivity between their enterprises.

The Ministry of Industry and Trade will further strengthen trade promotion and business connectivity to increase exports to Colombia and Chile, as well as other Latin American markets, and at the same time promote information system solutions and provide early warnings for businesses, as well as help businesses deal with arising problems and trade barrier-related risks.

The ministry will work with other ministries and sectors to increase connectivity and seek cooperation opportunities for businesses, and promote economic, trade and investment cooperation between Vietnam and Colombia and Chile.