Vietnam expects large investments following the double upgrade of its partnership with the U.S. and would welcome Brazilian businesses providing materials for new industries including the semiconductor industry.
Minister of Industry and Trade Nguyen Hong Dien said this at a meeting between a Vietnamese delegation led by Prime Minister Pham Minh Chinh and Brazilian businesses in Sao Paulo on Sunday (local time), as part of the PM’s visit to the South American nation. The event focused on prioritized sectors, especially agriculture, trade-investment promotions programs, and business facilitation.
The negotiation and signing for a trade agreement between Vietnam and the Mercosur (Southern Common Market), with Brazil as a member, is progressing, Minister Dien added. The ministry will send more staff to the Vietnamese trade mission in Brazil, he noted.
Dien called for bilateral trade to be stepped up, noting that while Vietnam-Brazil trade increased from $16 million in 1989 to $6.8 billion in 2022, it was just 1% of Vietnam’s total trade turnover.
Vietnam was a gateway to the ASEAN market of 600 million people, while Brazil was the South American market of 400 million people, he elaborated, stressing there was huge potential for increased bilateral trade.
PM Chinh said Vietnam was focusing on updating its market economy mechanism, streamlining administrative procedures, and building up a strong workforce as also its traffic-telecom infrastructure. He said he would welcome relevant suggestions from Brazilian firms.
The PM also called on Brazil to open a chamber of commerce in Vietnam and urged businesses of both countries to push up technology transfer and cooperation in diverse areas including culture, tourism and sports.
Vietnam was committed to collaborating with Brazil in negotiating agreements related to free trade, investment protection, double taxation avoidance and others, in a bid to facilitate businesses, Chinh said. "The target is to raise the bilateral trade to $10 billion in 2025 and $15-20 billion in 2030."
Brazil’s foreign direct investment in Vietnam is currently modest with six projects with a total registered capital of $3.83 million as of August 20, according to the Ministry of Planning and Investment.