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 shipmentsto Mexico, Peru and Chile – the three Latin American nations having hightariff-reduction commitments under the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP).

According to the Ministry of Industry and Trade’s European – American MarketDepartment, after one year the pact took effect, trade in goods between Vietnamand the countries topped 5.12 billion USD, with Vietnamese shipments hitting4.11 billion USD, up 26.76 percent against the same time in 2018.

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

This year, Vietnam gained 3.74 billion USD from shipments to the three nationsduring 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 tocut tariffs for Vietnamese products, with Chile pledging to remove up to 95percent of duties on Vietnamese goods, while Peru and Mexico reduce tariffs on80 percent and 77 percent of Vietnamese products.

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

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

Vietnamese exporters should pay attention to listing a suitable price for theMexican market, which has large population and strong consumption, herecommended.

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

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

VNA