Hanoi (VNA) ꦅ- In the first half of 2024, Vietnam was Chile's 12th largest supplier of goods, accounting for 1.59% of the South American country’s total imports, an improvement from the 1.38% proportion in the same period in 2023.

According to the Vietnam Industry and Trade Information Centre under the Ministry of Industry and Trade (MoIT), two-way trade has continued to grow strongly in 2024, affirming the strategic economic partnership between the two countries on the two banks of the Pacific Ocean. Both sides have continuously taken advantage of trade commitments to promote the exchange of goods and services.

Trade of key commodities grows steadily

This year, bilateral trade is expected to continue to grow steadily, with Vietnam's key exports to Chile including textiles, footwear, agricultural products (such as coffee, pepper, and rice), electronics and components. In return, Chile mainly exports to Vietnam fruits (especially grapes and apples), seafood, wine, and raw materials. In the context of globalisation and extensive participation in multilateral and bilateral trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam-Chile Free Trade Agreement (VCFTA), both Vietnam and Chile have increased cooperation, not only in the field of trade in goods, but also in areas such as investment, technology and renewable energy. Enterprises of both countries are looking for new opportunities to penetrate respective markets, taking advantage of preferential tariff policies and reducing trade barriers.

The governments have also played an important role in promoting a favourable business environment, with policies to support businesses, promote transparency and improve the efficiency of trade processes. In 2024, many business delegations from Vietnam will travel to Chile and vice versa, to seek partners, expand markets and promote bilateral cooperation projects. The development of bilateral trade not only contributes to the economic growth of both countries but also strengthens diplomatic, cultural and social relations between Vietnam and Chile, creating a solid foundation for future cooperation. According to statistics from the International Trade Centre (ITC), in the first six months of 2024, Vietnam was Chile's 12th largest supplier of goods, accounting for 1.59% of the South American country’s total imports. This is an improvement compared to the 1.38% proportion in the same period in 2023. Topping this list are China, the US, Brazil, Argentina, Germany, and Japan. According to the General Department of Vietnam Customs, the two-way trade turnover between Vietnam and Chile in 2023 reached 1.57 billion USD, down 27.18% compared to 2022. Of which Vietnam's export turnover to Chile reached 1.2 billion USD, down 30.68% compared to 2022, while Vietnam's import turnover from Chile reached 375.2 million USD, down 13.24% compared to the previous year. Export turnover to Chile accounted for 0.34% of Vietnam's total export turnover. Vietnam’s exports to Chile have continued to grow positively since the beginning of this year. In the first seven months of 2024, the Southeast Asian country’s export turnover to Chile reached 749.78 million USD, an increase of 11.77% over the same period last year. In July 2024 alone, Vietnam's export turnover to Chile was 73.31 million USD, an increase of 21.52% over the previous month, but a decrease of 31.31% over the same month last year. With this result, Chile is currently the 19th largest export market of Vietnam, accounting for 0.33% of the total turnover. On the contrary, in 2023, Vietnam's import turnover of goods from Chile reached 375.2 million USD, down 13.24% compared to the previous year. The country’s main import groups include seafood (117.21 million USD); wood and wooden products (63.5 million USD); base metals (63.48 million USD); and other goods (69.96 million USD).

Making the most of incentives from VCFTA

The 5th meeting of the Vietnam-Chile Free Trade Council was held in June 2024 under the co-chair of Vietnamese Deputy Minister of Industry and Trade Nguyen Hoang Long and Deputy Minister in charge of Foreign Trade at the Chilean Ministry of Foreign Affairs Claudia Sanhueza. At the meeting, the two sides reviewed the implementation of the VCFTA in recent times and updated current trade information as the comprehensive cooperation between Vietnam and Chile has been developing very well. Long and Sanhueza suggested the two sides continue to proactively propose measures to resolve difficulties in implementing the VCFTA and promote the implementation of commitments in the coming time. Vietnam considers Chile one of Vietnam's leading important partners in the Latin American region. In return, Chile wants to promote trade relations between the two countries, with the goal of promoting bilateral trade turnover in the context of implementing the CPTPP. In the coming time, Vietnam and Chile will continue to focus on maximising incentives from new-generation free trade agreements, identifying measures to remove difficulties in bilateral economic, trade and investment relations. At the same time, the two nations will further strengthen trade, and exchange business delegations to participate in fairs and exhibitions. To promote the export of Vietnamese goods to Chile, State management agencies will focus on improving the competitiveness of Vietnamese goods, optimising the legal environment, and expanding market access opportunities./.