Vietnam, Brazil eyes joint coffee exchange

Vietnam and Brazil will sign a food security agreement which includes plans to explore a joint coffee exchange and possibility of building a shared bilateral coffee brand.

The consensus was reached at the Vietnam-Brazil Business Forum in Rio de Janeiro last Saturday, attended by Vietnamese Prime Minister Pham Minh Chinh who is in Brazil for the expanded BRICS summit and bilateral activities, the Vietnamese government’s news portal reported.

Under the expected food security agreement, Vietnam will export rice to the South American country.

Brazil and Vietnam, the world’s largest and second-largest coffee producers, respectively, will also work to accelerate the formation of a coffee export and production alliance.

Speaking before nearly 100 businesses from both countries, the Vietnamese leader called for stronger cooperation and investment in three key areas - agriculture; science, technology, innovation, digital transformation, and telecommunications; and mining and mineral processing.

He suggested both sides further open their markets to each other’s key agricultural products, given their complementary economic strengths.

“What Brazil lacks, Vietnam has potential for; and what Brazil excels in, Vietnam needs,” Prime Minister Chinh explained, citing tropical fruits as an example as both countries are rich in variety, but their harvest seasons differ.

He noted that Brazil exported its first shipment of beef to Vietnam. In return, Vietnam shipped pangasius (tra fish, basa fish) and tilapia to the Brazilian market.

Bilateral investment has also made notable progress, with several companies exploring joint projects in high-potential sectors such as high-tech agriculture, digital transformation, e-commerce, advanced processing, and logistics.

However, these outcomes still fall short of the two countries’ full cooperation potential, the Prime Ministersaid, suggesting a new direction: localized agricultural production and processing to serve both domestic consumption and exports to third markets.

Vietnamese companies could grow rice and process it in Brazil, while Brazilian firms could raise livestock and process meat in Vietnam, he elaborated.

He affirmed the government’s commitment to facilitating Brazilian investment in Vietnam.

The two sides agreed to conclude negotiations on a free trade agreement (FTA) between Vietnam and the Southern Common Market (Mercosur) in the second half of this year, while also pushing for a bilateral FTA.

They will also work to improve the legal framework for cooperation in investment and labor, ease visa procedures, and expand direct flight routes to further facilitate business collaboration.

Brazilian officials emphasized their willingness to increase the import of Vietnamese seafood and rice.

Brazil is currently Vietnam’s largest trading partner in Latin America and second-largest in the Americas. Bilateral trade reached nearly $8 billion in 2024 and $3.33 billion in the first five months of this year. The two countries aim to raise the figure to $15 billion by 2030.

In June, Vietnam became the 10th BRICS partner country, which the Ministry of Foreign Affairs said reflects Vietnam’s desire to promote international solidarity and inclusive multilateralism.

At the March Vietnam-Brazil Economic Forum in Hanoi, Brazilian President Luiz Inácio Lula da Silva also pledged that Brazil will import more products from Vietnam than other traditional partners in the coming time.

Vietnam's new decision to open its market to Brazilian beef is a positive step for the bilateral relationship, he noted, adding that a Brazilian company will invest $100 million in building a beef processing plant in Vietnam.

He proposed both sides consider establishing joint funds to promote investment and develop science-technology, ensuring favorable conditions for their businesses to collaborate.

Vietnam’s coffee export turnover reached $5.5 billion in H1/2025, soaring from $2.7 billion a year earlier and already exceeding the full-year total of $5.4 billion in 2024, according to the Ministry of Agriculture and Environment.

This marked the first time the coffee industry has hit such H1 milestone, effectively achieving its full-year target ahead of schedule.

Vietnamese coffee is now exported to more than 80 countries and territories.

The ministry forecasts that the revenue could climb to $7.5 billion by year-end, up nearly 37% from 2024, the highest growth on record despite persistent global market volatility.