Vietnam and Brazil hold significant prospects for trade collaboration
In a bid to strengthen economic ties, Vietnam and Brazil are exploring substantial trade opportunities across various sectors. The two nations, each boasting unique strengths, are set to collaborate in agricultural products, manufacturing, and energy cooperation.
In the agricultural arena, Vietnam is eager to expand its exports to Brazil, particularly for shrimp, tra, and basa fish. In return, Vietnam is set to open its market to Brazilian beef products. Recent moves by Brazil, such as lifting the ban on tilapia imports and opening the market to certain types of Vietnamese shrimp, signal a positive trajectory for trade relations.
The manufacturing sector is another area of focus. Brazil has invested in various sectors in Vietnam, with projects worth approximately $3.85 million as of October 2024. Companies from both countries are leveraging trade events, like the International Sourcing Expo 2025, to explore new trading opportunities.
Energy cooperation is a key area of focus for both countries, offering substantial collaboration opportunities in the coming years as Vietnam undergoes a strong energy transition. Brazil, with its expertise in ethanol production, presents opportunities for cooperation in this area.
Trade between Vietnam and Brazil is increasing rapidly, with a target of $10 billion in 2025 and $15 billion by 2030. Vietnam's status as a BRICS partner opens new doors for trade and investment, allowing it to strengthen ties with emerging economies while maintaining strategic flexibility.
Brazil, the largest economy in Latin America and the 10th globally, could help Vietnamese goods access Latin American markets and Mercosur, while Vietnam could help Brazil break into the ASEAN market and the CPTPP market. The bilateral trade reached $3.33 billion in the first five months of 2024, a 5% decrease compared to the same period in 2024.
Vietnam imports soybeans, wheat, corn, livestock feed, raw materials, and various types of cotton from Brazil. In return, Vietnam's primary exports to Brazil include seafood, rubber, textiles, footwear, and iron and steel products.
Both countries have been cooperating for years and are aiming to elevate their bilateral relations. Brazilian officials have emphasised the need to focus on energy cooperation and economic-trade ties, stating Brazilian enterprises are ready to explore opportunities and cooperate in these fields.
Minister of Industry and Trade Nguyen Hoang Dien affirmed the substantial untapped potential in the Vietnam-Brazil cooperation and suggested technical teams from both sides continue working. Representatives from Vifon Group and Tan Nhat Huong Company have expressed interest in new opportunities in the South American market, particularly Brazil.
In conclusion, the potential for trade between Vietnam and Brazil is substantial, with both nations poised to benefit from collaborations in agriculture, manufacturing, and energy. As both countries continue to work towards opening markets and strengthening ties, the future of their economic relationship looks promising.
- The energy sector presents significant collaboration opportunities for Vietnam and Brazil, considering Vietnam's ongoing energy transition and Brazil's expertise in ethanol production.
- Vietnam's trading relationship with Brazil is not limited to agricultural produce and seafood; both countries are also keen on exploring new opportunities in the manufacturing sector, particularly through events like the International Sourcing Expo 2025.
- With Brazil's expertise in ethanol production and Vietnam's potential in the ASEAN market and CPTPP, both countries could mutually benefit from cooperating in sports, with the potential for better access to global markets.
