Garment and textile products have potential in Mercosur market (Photo: VNA). HCM City (VNA) – Mercosur countries, comprising Argentina, Brazil,Paraguay, Uruguay and Venezuela, could be a potential market for a wide rangeof Vietnamese products such as clothing, footwear, handicraft, and processedfood in the context that the COVID-19 pandemic has killed off varioustraditional supply chains, heard a conference.
At the online Vietnam-Mercosur trade conference on October 1, Deputy Ministerof Industry and Trade Do Thang Hai highlighted Vietnam has enjoyed unceasingtrade development with Mercosur, the world’s 5th largest economy with more than275 million consumers and 4.58 trillion USD in GDP.
Trade between the two sides increased 2.5 times in recent ten years, from 2.45billion USD in 2011 to 8.68 billion USD in 2019, he said, adding Vietnamexported 2.7 billion USD worth of products, and splashed out nearly 6 billionUSD purchasing goods from the bloc.
According to Hai, Vietnam has set up an array of dialogue mechanisms with mostof the Mercosur member states, which have proved efficiency in promotingeconomy, trade and investment. They are working towards negotiations of abilateral trade pact in a bid to create an equal and transparent playground fortheir businesses.
The COVID-19 pandemic has clobbered global socio-economic situation, makingtrade between the two sides fall 1.66 percent to 5.53 billion USD duringJanuary-August.
“Vietnam has put the outbreak under control while the Ministry of Industry andTrade is making efforts to enhance online trade promotion activities, givemarket information to local firms and foreign partners to remove bottlenecks ininternational trade. Those are favourable conditions for Vietnam to step uptrade with Mercosur as well as balance trade with the bloc”, he highlighted.
According to Vietnamese Ambassador to Argentina Duong Quoc Thanh, economiccooperation has been a highlight in the sound Vietnam - Argentina friendship.With trade value of approximate 3 billion USD, Vietnam has been the largesttrade partner of Argentina in the ASEAN bloc in recent five years, and thebilateral trade is forecast at 4 billion USD in 2020.
However, Vietnamese exports to Argentina were only valued at 500 million USD,accounting for 1.4 percent of the local import demand, he said, stressing thereis huge room for Vietnamese garment and textile, footwear, furniture,handicraft, coffee, pepper and cashew.
Meanwhile, Vietnamese Ambassador to Brazil Pham Thi Kim Hoa said althoughVietnamese seafood, footwear, processed food, beverage and toys have won thetaste of Brazilian consumers, their market share remains small, making up of1.5 percent of the country’s import need.
Analysis from the Vietnamese trade office in Argentina, Uruguay and Paraguay showedthe two economies are complementary rather than competing, with Mercosurholding strengths in agricultural production, footstuff, industrial materialsand miniral, and Vietnam’s key exports of electronics and communicationsproducts, garment and textiles and footwear.
Particularly, Mercosur has seen Vietnam as an important trade partner in theAsian region.
As Mercosur countries are re-shaping the post- coronavirus outbreak supplychain and diversify import products, Vietnamese firms have ample opportunity toboost trade to improve market share and export value in the time ahead./
VNA
