Unleashing the Potential: Clearing Bottlenecks to Elevate Vietnam-Brazil Economic Cooperation

The Forum was co-organized by the Ministry of Planning and Investment, the Embassy of Vietnam in Brazil, and the Federation of Industries of Rio de Janeiro, with the participation of the Minister of Rural Development of Brazil, Paulo Teixeira; the Minister of Science, Technology and Innovation of Brazil, Luciana Santos; the Governor of Espirito-Santo, Renato Casagrande; the leadership of the Brazil Chamber of Commerce and Industry, and the members of the Vietnamese delegation, along with nearly 100 business representatives from both countries.

Hope for an Early Conclusion of the Vietnam-MERCOSUR FTA

According to information at the Forum, Brazil is currently Vietnam’s leading trade partner in Latin America. In recent years, bilateral trade between Vietnam and Brazil has grown rapidly, increasing from 1.53 billion USD in 2011 to over 7.1 billion USD in 2023; in the first ten months of 2024, it reached 6.58 billion USD. The two countries aim to lift the bilateral trade value to 10 billion USD by 2025 and 15 billion USD by 2030.

Vietnam’s main exports to Brazil include seafood, rubber, textiles and garments, footwear, and iron and steel. Meanwhile, Vietnam imports from Brazil soybeans, wheat, corn, animal feed and raw materials, and various types of cotton.

In terms of investment, as of October 2024, Brazil has seven investment projects in Vietnam with a total registered capital of 3.85 million USD, mainly in the fields of manufacturing, wholesale and retail, and professional scientific and technological activities. On the other hand, Vietnamese investors have two projects in Brazil with a total registered capital of 700,000 USD.

At the Forum, delegates and business communities from both countries were introduced to each other’s potential, strengths, and desired areas of investment cooperation. Additionally, they proposed solutions to promote cooperation between the two countries, especially in areas where one party has strengths and the other has demands.

Mr. Paolo Teixeira, Minister of Rural Development of Brazil, highly valued Vietnam’s support for and active engagement in the Global Alliance against Poverty. He emphasized that both countries are strong agricultural nations, and in the context of many people and nations still facing poverty, the two sides should continue to play a significant role and contribute to the world not only in trade and food supply but also in agricultural science and technology.

Mr. Rodrigo Santiago, Vice President of the Federation of Industries of Rio de Janeiro, expressed his hope for an early conclusion of the Free Trade Agreement between Vietnam and the Southern Common Market (MERCOSUR). He highlighted the enormous potential and strategic position of Vietnam in Southeast Asia as a bridge connecting Brazil to ASEAN.

The leadership of the Federation of Industries of Rio de Janeiro, the Brazil Chamber of Commerce and Industry, and representatives of Brazilian businesses, such as Embraer Aviation Corporation, considered Vietnam as one of their key and important partners in Asia. They expressed their desire to strengthen cooperation with Vietnam in aviation, semiconductors, agriculture, rubber, fisheries, technology, and innovation.

Mr. Nguyen Huu Tu, Deputy General Director of the Vietnam Chemicals Corporation (Vinachem), shared that in 2024, the estimated trade turnover of the Corporation in the Brazilian market exceeded 90 million USD, nearly doubling that of 2021. The Corporation’s tire products under the brands of Cao su Da Nang and Cao su Mien Nam have gained increasing trust from Brazilian consumers.

As a powerhouse in agriculture with a significant demand for fertilizer imports, Brazil presents a great opportunity for Vinachem. The Corporation is working diligently with its partners to ship the first batches of high-quality fertilizer and cleaning products bearing the Vinachem brand to Brazil within this year.

The Corporation also aspires to supply technical rubber products for Embraer’s modern aircraft and plans to import certain products from Brazil, such as ore and agricultural products, as input materials for production. These efforts are part of Vinachem’s goal to elevate bilateral trade with its Brazilian partners to 500 million USD by 2030.

The Conditions and Opportunities for Development and Cooperation Between the Two Countries are Very Open

Speaking at the Forum, Prime Minister Pham Minh Chinh shared that he had just concluded a very successful meeting with President Luiz Inácio Lula da Silva of Brazil, during which they agreed to upgrade the bilateral relationship to a Strategic Partnership.

According to the Prime Minister, based on the solid foundation of political and diplomatic relations, the two countries share similar ideals, close cultural identities, and complementary economic strengths. They also cherish sincere and amicable sentiments and share a common aspiration for peace and national development. The conditions and opportunities for development and cooperation between the two countries are very open, especially in the fields of economics, trade, investment, and people-to-people exchanges, as well as cultural cooperation. Notably, Brazil boasts a vast territory and a large market with a population of over 200 million people.

However, the economic relationship has not yet lived up to the potential, conditions, and aspirations of the two sides. The Prime Minister called for more Vietnamese businesses to invest in Brazil and more Brazilian businesses to invest in Vietnam, promoting bilateral trade, especially in agriculture to ensure food security. He emphasized the need to rejuvenate traditional growth drivers and foster new ones, encouraging cooperation with Vietnam in exploiting new development spaces such as outer space, the sea, and underground resources.

The Prime Minister informed that Vietnam is committed to selectively attracting investments in high-tech projects with high added value and spillover effects, connecting with domestic businesses. Priority will be given to projects in the fields of science and technology, innovation, research and development, green economy, digital economy, circular economy, knowledge-based economy, semiconductor production, new energy (hydrogen), renewable energy, green finance, financial centers, biotechnology, and healthcare.

To address the bottlenecks and elevate the economic cooperation to match the political and diplomatic relationship and the aspirations of the two sides, the Prime Minister suggested that the two countries should promote the early initiation of FTA negotiations with MERCOSUR, the Agreement on Encouragement and Protection of Investment, and the Agreement on Visas. He also proposed that Brazil consider recognizing Vietnam’s market economy status.

The Prime Minister requested the businesses to support these efforts to create a transparent and favorable investment environment, maximizing the potential, outstanding opportunities, and competitive advantages of each country.

For its part, Vietnam is vigorously promoting three strategic breakthroughs in institutional building, strategic infrastructure development, and high-quality human resource training, guided by the orientation of “open institutions, seamless infrastructure, and intelligent governance.” The country is also improving its business and investment environment, creating a transparent, fair, and healthy business climate, and reforming administrative procedures to simplify processes, reduce logistics costs, input costs, and compliance costs, thereby enhancing the competitiveness of products and enterprises.

Given the available opportunities and conditions, along with the ongoing improvements in the legal environment, the Prime Minister expressed his hope that businesses from both countries would strengthen their connections, linking the two economies, investments, and trade. He emphasized the viewpoint of “harmonious interests and shared risks,” suggesting that they should “listen and understand each other, share the same vision and take action together, win together, enjoy together, and develop together with shared joy, happiness, and pride.”