Trade value between Vietnam and Brazil was forecast to reach US$1 billion next year, announced a seminar on business opportunities between the two countries held on Wednesday by the Export Assistance Centre of the Trade Promotion Department (TPD) under the Ministry of Industry and Trade.
Brazil, the world’s 10th largest economy with a population of 190 million, represents an export market with enormous potential for Vietnam.
Two way trade has surged significantly during 2005-08, representing an increase of 60 per cent a year. Bilateral trade value reached US$534.5 million in 2008, a year-on-year increase of 96 per cent, according to the Vietnam General Department of Customs.
In the first nine months of this year, Brazilian exports to Vietnam were worth $200 million, with imports the other way accounting for $100 million. Vietnam ships mostly footwear, computers, garments, leather shoes, coal, rubber and fruit to Brazil while importing textile and garment materials, iron and steel, machinery and equipment.
Speaking at the seminar, Le Xuan Duong, director of the Export Assistance Centre, said that Viet Nam’s export products had advantages due to reasonable prices and fairly good quality.
Vietnam currently has four potential staples such as fruits, leather shoes, seafood, and textiles and garments. However, to exploit export opportunities and reduce the trade deficit, Vietnam should further research Brazilian consumer tastes, as well as focus on more value-added products such as electronic components, and consumer goods, Duong said.
It is projected that by 2015 when Vietnam’s industry will be more advanced with higher productivity and industrial products, bilateral trade turnover could top billions of US dollars, on par with Thailand, South Korea and Singapore.
Since the geographical distance makes exchanging market information difficult, government trade bodies should play a bigger role in providing business information to companies to boost two-way trade, said Janet Castanha,
co-ordinator of Enterprises Association of Brazil’s Prana state.
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