CPTPP a driving force behind Vietnamese exports to Latin America
Footwear is one of Vietnam's export staples to the Latin American market |
According to figures published by the Ministry of Industry and Trade’s European – American Market Department, one year after the deal has come into force, trade in goods between the nation and the three countries totaled US$5.12 billion. This includes Vietnamese exports reaching a sum of US$4.11 billion, representing a rise of 26.76% in comparison with the same period from 2018.
Vo Hong Anh, deputy head of the European-American Market Department, stated that the nation has recorded a trade surplus of US$3 billion with the three countries, with export growth of 26.3% to Mexico, 20.3% with Peru, and 36.4% to Chile.
This year has seen the country bring in US$3.74 billion from shipments to the three nations from January to October, an annual increase of 4.6%, despite the impact of the novel coronavirus (COVID-19) pandemic.
Vietnamese export staples include garment and textiles, footwear, seafood, furniture, along with telephones and parts.
Among the 11 members of the CPTPP, the trio of Latin American countries have pledged high commitments to cutting tariffs on Vietnamese products, with Chile pledging to remove up to 95% of duties on Vietnamese goods, while Peru and Mexico will reduce tariffs by 80% and 77% on Vietnamese products.
With these favourable conditions, local products have plenty of opportunities to achieve greater penetration into these potential markets.
Furthermore, Luu Van Khang, the Vietnamese commercial counsellor in Mexico, highlighted the Central American nation as a promising market for Vietnamese seafood, largely due to frozen fish and shrimp set to enjoy a 0% tariff from the third year of the CPTPP coming into effect. In addition, Mexico spends approximately US$351 million on frozen fish annually.
Vietnamese exporters should therefore pay close attention and come up with a suitable price for the Mexican market, which has large population and strong consumption, Khang suggested
In relation to Peru, Le Hong Quang, Vietnamese commercial counsellor in Brazil, suggested that firms strive to grasp the opportunities from the trade deal and boost exports to the market, where 75% of importers and exporters are small and medium-sized enterprises.
In addition to the free trade agreement signed with Chile in 2011, the CPTPP is expected to provide plentiful opportunities for Vietnamese enterprises to increase exports to the South American nation.
Related News
Vietnam's exports to Canada lead among CPTPP countries
09:41 | 25/04/2024 Headlines
Seafood businesses effectively exploit tariff incentives from CPTPP
08:03 | 26/01/2024 Import-Export
Increasing trade defense tools in the CPTPP member countries
10:37 | 07/12/2023 Import-Export
Trade defense tools strengthened in CPTPP member countries
10:28 | 03/12/2023 Import-Export
Latest News
FDI disbursement in January-April period reaches five-year record
19:43 | 01/05/2024 Import-Export
Binh Duong aims to become logistics hub in southern region
19:41 | 01/05/2024 Import-Export
Digital transformation – optimal choice for Vietnamese garment & textile firms
19:39 | 01/05/2024 Import-Export
Infrastructure development creates momentum for exports to "neighboring" markets
19:36 | 01/05/2024 Import-Export
More News
Seaports increase services to attract goods
19:35 | 01/05/2024 Import-Export
The supporting industrial enterprises transform for sustainable development
08:20 | 01/05/2024 Import-Export
Foreign investment disbursement hits record high in the first four months
13:36 | 30/04/2024 Import-Export
Vietnam textile and garment strives to increase the localization rate
06:46 | 30/04/2024 Import-Export
Central Highlands needs to develop border gate economic zones for higher export
16:41 | 29/04/2024 Import-Export
RoK burgeoning market for Vietnam’s agro-forestry-fisheries exports
16:37 | 29/04/2024 Import-Export
Developing a strong brand contributes to increased export revenue
07:49 | 29/04/2024 Import-Export
Export turnover reaches over US$200 billion in the first half of April
15:04 | 28/04/2024 Import-Export
Experts call for efforts in protecting IP rights
15:02 | 28/04/2024 Import-Export
Your care
FDI disbursement in January-April period reaches five-year record
19:43 | 01/05/2024 Import-Export
Binh Duong aims to become logistics hub in southern region
19:41 | 01/05/2024 Import-Export
Digital transformation – optimal choice for Vietnamese garment & textile firms
19:39 | 01/05/2024 Import-Export
Infrastructure development creates momentum for exports to "neighboring" markets
19:36 | 01/05/2024 Import-Export
Seaports increase services to attract goods
19:35 | 01/05/2024 Import-Export