CPTPP – a booster for Vietnamese exports to Latin America

Vietnam has potential to increase exports to Mexico, Peru and Chile. (Photo: VNA)

Hanoi (VNA) – Vietnam boasts huge potential to increase shipments to Mexico, Peru and Chile – the three Latin American nations having high tariff-reduction commitments under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

According to the Ministry of Industry and Trade’s European – American Market Department, after one year the pact took effect, trade in goods between Vietnam and the countries topped 5.12 billion USD, with Vietnamese shipments hitting 4.11 billion USD, up 26.76 percent against the same time in 2018.

Deputy head of the European-American Market Department Vo Hong Anh said Vietnam enjoyed a trade surplus of 3 billion USD with the three nations, with export growth of 26.3 percent in Mexico, 20.3 percent in Peru, and 36.4 percent in Chile.

This year, Vietnam gained 3.74 billion USD from shipments to the three nations during January-October, a year-on-year surge of 4.6 percent, despite pandemic.

Exports of Vietnam’s strength are garment and textiles, footwear, seafood, furniture, telephones and parts.

Among the 11 members of the CPTPP, the three nations have high commitments to cut tariffs for Vietnamese products, with Chile pledging to remove up to 95 percent of duties on Vietnamese goods, while Peru and Mexico reduce tariffs on 80 percent and 77 percent of Vietnamese products.

With such favourable conditions, Vietnamese products have huge opportunities to penetrate into the markets.

Vietnamese commercial counsellor in Mexico Luu Van Khang described Mexico as a promising market for Vietnamese seafood since frozen fish and shrimp will enjoy zero-percent tariff from the third year after CPTPP takes effect. Meanwhile, Mexico spends some 351 million USD on frozen fish every year.

Vietnamese exporters should pay attention to listing a suitable price for the Mexican market, which has large population and strong consumption, he recommended.

For Peru, Vietnamese commercial counsellor in Brazil Le Hong Quang suggested businesses grasp opportunities from the trade deal to enhance shipments to the market, where 75 percent of importers and exporters are small and medium-sized enterprises.

Along with the free trade agreement signed with Chile in 2011, CPTPP creates more opportunities for Vietnamese firms to boost shipments to the nation./. 

VNA