Vietnam's chemical giant Vinachem targets $500 mln trade turnover with Brazil in 2030

Vietnam’s state-run chemical group Vinachem and Brazil’s major trading firm Oceanside One Trading LLC say they will strive to boost their bilateral trade to $500 million in 2030.

The two firms signed a memorandum of understanding (MoU) for the move on Sunday (local time), part of Vietnamese Prime Minister Pham Minh Chinh’s meeting with Oceanside One Trading's leadership.

The activity was on the sidelines of Chinh’s ongoing trip to the Latin American nation to attend the G20 Summit and join bilateral activities.

The two sides will focus on production and distribution of tires, fertilizer, chemicals; market research; supply chain management and transportation; and workforce training.

Vinachem also plans to import some Brazilian goods, including ores, as input materials. Vinachem said it is developing new product of high-tech acid phosphoric and yellow phosphorus to join the semiconductor market.

The Vietnamese chemical giant proposed the governments of Vietnam and Brazil facilitate the market and cooperation among businesses, including tax-related support for tires, fertilizer, and chemicals.

At the moment, Oceanside Once Trading imports Vinachem tires to the Brazilian market worth $120 million a year. The firm aims to increase the figure to $150 million soon and $70 million a year for the United States market.

For his part, Prime Minister Pham Minh Chinh urged Oceanside One Trading to make recommendations for Vietnam to improve the business environment.

He also highlighted Vietnam’s advantages of its prime location to link to major markets of China and the ASEAN. Another strength is Vietnam’s membership in 17 free trade agreements linking with 60 top economies.

Roger Zen, CEO and chairman of Oceanside One Trading, said the firm aims to purchase more Vietnamese goods and bring more goods to Vietnam, in order to up its trade turnover with Vietnam by 15-20% yearly.

On the same day, Vietnam and Brazil issued a joint statement to elevate their bilateral relations to a strategic partnership. The two countries welcomed the sustainable growth in bilateral economic exchanges and pledged to further promote trade and investment. They reaffirmed the targets to raise bilateral trade to $10 billion in 2025 and $15 billion in 2030.