Vietnam, Paraguay boost trade ties, urge negotiation of FTA with MERCOSUR

Vietnamese Minister of Industry and Trade Nguyen Hong Dien (right) and Paraguayan Minister of Industry and Commerce Javier Gimenez, Hanoi, May 24

At the meeting, Paraguayan Minister of Industry and Commerce Javier Gimenez shared that Paraguay considers Vietnam an important partner in the region and highly appreciates the role of the Vietnamese Ministry of Industry and Trade in promoting the development of bilateral economic and trade relations.

He said Paraguay is strong at livestock and crop cultivation, and at the same time has a demand for cooperation in renewable energy and telecommunications, specifically wishing to cooperate with Vietnam in studying the possibility of building a data center in Paraguay in order to provide data and develop the optical fiber system for the South American region.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien said trade between Vietnam and Paraguay has seen positive developments in recent years, but remains incommensurate with the potential and the good bilateral political and diplomatic relations. Paraguay has become a top-10 Latin American trade partner of Vietnam, and was one of the biggest markets of Vietnam in terms of trade value growth in 2023, he said.

According to Minister Dien, a free trade agreement between Vietnam and MERCOSUR (Mercado Común del Sur or Southern Common Market), including Paraguay, will create a breakthrough in promoting trade and investment ties between Vietnam and Paraguay in particular and Vietnam and the MERCOSUR region in general. Such an agreement would make it possible for Paraguay to enter ASEAN (Association of Southeast Asian Nations) and Asian-Pacific markets, and businesses can penetrate the large markets to which Vietnam is an FTA signatory.

The May-24 Hanoi-based meeting between Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Paraguay Minister of Industry and Commerce Javier Gimenez

Minister Dien said Vietnam is in great need of importing raw materials from countries with high potential, including Paraguay, to ensure stable fuel and material sources for production and export. At the same time, Vietnam wishes to cooperate with foreign partners in research, application of science and technology, innovation, as well as training and providing high-quality human resources.

He proposed that the two sides coordinate to find new directions and measures for promoting the bilateral trade cooperation and further support each other at multilateral and regional forums, as well as consider the possibility of organizing business delegations to trade fairs and exhibitions in the two countries.

The Vietnamese minister also proposed that the two sides consider the possibility of cooperation in the development of processing industries, high-tech agriculture, energy, etc., while boosting cooperation in green technology, use of new energy, high-tech digital economy fields, and e-commerce.

Along with welcoming the proposals of Minister Nguyen Hong Dien, Minister Javier Gimenez particularly emphasized the need to kick off the negotiation of a free trade agreement between MERCOSUR and Vietnam as soon as possible, and promised that with Paraguay’s role as the rotating chair of MERCOSUR in 2024, the country will strongly promote this issue.