A seminar on the Vietnamese-Chilean Free Trade Agreement (FTA) was organised by the Chilean Embassy in Vietnam and the Chilean Trade Promotion Agency (ProChile) together with the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on September 10.

The bilateral trade agreement was signed in 2011 and officially entered into force on January 1, 2014. The agreement is expected to boost bilateral trade and improve trade relations between Vietnam and Chile , as well as potentially facilitate access to the respective regional markets.

Under this agreement, 87.8 percent of goods exported from Chile will enjoy preferential taxes over the next 15 years. Vietnam in turn will benefit from a low-to-zero tax rate for its key export products, namely garments, seafood, coffee, tea, computers and spare parts.

Speaking at the event, Chilean Ambassador to Vietnam, Fernando Urrutia, highlighted that Chile was one of the founding members of the Pacific Alliance, a Latin American trade group including Peru , Mexico and Columbia. This would enable Vietnam to enter the Latin American market via this “natural gate”.

According to ProChile, Bilateral trade between February and May this year was valued at 272.5 million USD, up by 19.2 percent compared to the same period last year.

Chile is the first Latin American country to sign an FTA with Vietnam. This is Vietnam’s 8th FTA.

Vietnam and Chile are currently part of the negotiations on the Trans-Pacific Partnership agreement (TPP).-VNA