Seafood is one of the key export products from Việt Nam to Brazil. (Photo: congthuong.vn) Brazil is a very large and potential market for Vietnamese goods. This marketis not too strict and people's tastes are very diverse.
The General Department of Customs reported that in the first four months of2023, bilateral trade turnover between Vietnam and Brazil reached 2.32 billionUSD, down 2.4% over the same period in 2022. Of which, Vietnam’s exports toBrazil reached more than 855 million USD, up 14%, while Vietnam’s imports fromBrazil reached 1.4 billion USD, down 10% over the same period in 2022.
According to the Vietnam Trade Office, Vietnam’s exports to Brazil in the firstfour months of 2023 included iron and steel, means of transport and spareparts, bags and suitcases, machinery and equipment, textiles, materials oftextile, garment and footwear, rubber, seafood, and phones and components.
Meanwhile, Vietnam’s main imported products from Brazil were raw materials andaccessories for domestic production, such as corn, machinery, equipment andspare parts, and plastic materials.
Now, enterprises of the two countries mainly carry out trade activities to meettheir production and consumption on the domestic markets. The two countries donot have each other's investors, so the trend of investment cooperation in thetwo countries is necessary to meet the product supply in each country,according to the trade office.
Meanwhile, the trade activities between Vietnam and Brazil still have manydifficulties and challenges. Of which, the geographical distance betweenthe two countries is far, while the transportation is not convenient, so thelogistics have not met the import and export needs of the two sides.
The challenges have also included fierce competition in quality and price fromexport competitors from China, Thailand, Indonesia, Malaysia, Philippines, andSingapore.
Additionally, Vietnamese businesses, localities and associations have not beenproactive and drastic in expanding markets, including Brazil.
In order to promote exports to Brazil, Ngo Xuan Ty, head of the VietnamTrade Office in Brazil (concurrently Peru and Bolivia), has suggested that theMinistry of Industry and Trade should propose the Government to promote thedevelopment of logistics, helping the businesses reduce transportation costsand facilitate exports. Because the logistics directly affect competition inprice and delivery time with export competitors from China, Thailand,Indonesia, Malaysia, the Philippines and Singapore.
At the same time, he has recommended that the ministry proposes the Governmentto open a flight route connecting Vietnam with Sao Paulo, Brazil, which isthe largest trading gateway of South America.
Meanwhile, the businesses, associations and localities should coordinate withthe industry and trade ministry to participate in trade promotion programmessuch as fairs, exhibitions, trade promotion conferences in Brazil as well asPeru and Bolivia. The Vietnam Trade Office in Brazil is working with partnersin Santa Cruz, Bolivia's largest economic centre, to boost exports to Bolivia.
The Peruvian market is an open market with great potential. This is anopportunity to increase the export of Vietnamese goods to this market. Localpeople are very welcome to import goods with good quality and competitiveprices, so Vietnamese businesses should have many trade promotion programmes tointroduce their products in Peru, Ty said.
In addition, it is necessary to have a close connection between domesticenterprises to build a community of reputable export businesses for expandingthe export market.
On the other hand, they need to do better in building reputable brands andproduce goods with improved quality and competitive prices, he said.
Currently, increased transport and logistics costs have affected exportactivities. In addition, the export and consumption of goods have sufferednegative impacts from many uncertainties in the global market caused by theCovid-19 pandemic, and the conflict between Russia and Ukraine.
Those factors have affected the production of Vietnam and also the tradeactivities between Vietnam and other countries, including Brazil.
In 2022, the bilateral trade turnover between Vietnam and Brazil reached 6.78billion USD, up 6.6% compared to 2021./.
VNA
