Ample opportunity for Vietnam - Peru trade to increase to meet potential

Peru: A gateway to opportunity

Citing data from the General Department of Vietnam Customs, the Ministry of Industry and Trade (MoIT)’s European-American Market Department reported that Vietnam - Peru trade reached 486 million USD in 2023, with Vietnamese exports dominating at 439 million USD.

During January - September, the figure hit 389.69 million USD, with Vietnamese exports to Peru totaling 336.99 million USD. This growth has positioned Peru as Vietnam’s sixth-largest trade partner in Latin America.

Vietnam's key exports – phones, electronics, footwear, cement, plastic materials, apparel, and seafood – are making inroads into the Peruvian market, while Peru reciprocates with essential exports such as fishmeal, antimony ore, and various mineral products.

Despite global economic headwinds, both nations, members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), are primed to boost trade turnover, capitalising on the deal's preferential terms across various sectors.

The Vietnam - Peru Inter-Governmental Committee, held biennially on a rotating basis and co-chaired by a Vietnamese deputy minister of industry and trade and a Peruvian deputy minister of foreign affairs, serves as an effective mechanism to propel bilateral and multilateral economic ties.

Peru is recognized as a dynamic economy with a relatively open foreign economic policy. It is a member of most major international and regional institutions, including the World Trade Organisation (WTO), the Asia-Pacific Economic Cooperation (APEC), and the Pacific Alliance (PA). With 22 free trade agreements (FTAs) in place with 58 countries, Peru stands out as one of the Latin American nations with the largest numbers of FTAs.

The majority of Peru’s export - import companies are small and medium-sized, creating a fertile ground for Vietnamese goods to penetrate and thrive in the market. Furthermore, Peru could serve as a gateway for Vietnamese products to access neighbouring markets such as Ecuador, Colombia, Bolivia and Brazil.

The ongoing construction of the Chancay megaport in the north of Lima capital is a game-changer, strategically positioned to optimise shipping times and costs for Vietnamese businesses. Estimates suggested that shipping times could be reduced by 30% to 50%, while logistics costs may drop by up to 20%, significantly enhancing Vietnam's competitiveness in this Latin American market.

Navigating challenges and seizing opportunities

However, challenges such as geographical distance, language barriers and fierce competition remain. To navigate these hurdles, Vietnamese exporters are encouraged to actively attend Peruvian trade fairs, promote Vietnamese culture through local media, and establish robust logistics networks.

At a recent working session with Secretary General of the Peruvian Ministry of Foreign Affairs Eric Anderson, Deputy Minister of Industry and Trade Nguyen Hoang Long proposed that Peru facilitate delegation exchange, sign cooperation agreements in mutually beneficial fields, and maximize the opportunities presented by the CPTPP.

Long also highlighted the potential for collaboration in developing mineral extraction, organic agricultural products, food processing, and tourism. He urged a focus on breakthrough industries aligned with current trends, particularly in green technology, the digital economy, and e-commerce.

The MoIT remains committed to supporting companies by facilitating their connections with Peruvian State agencies through diplomatic and trade channels, ensuring that any arising issues are promptly addressed, he added./.