As one of the region’s most important manufacturing hubs, Vietnam has seen benefits from changes in the global manufacturing supply chain, resulting from its flexible approach to regulating production and exports.
The investment climate has been increasing significantly, due to the Vietnamese commitment to simplify administrative procedures, offering both tax and tariff incentives for companies in the manufacturing sector, encouraging public investment.
The Vietnamese government has grown both in investment and infrastructure at the national level (around 5.7% of GDP) by interconnecting seaports, airports, warehouses and shipyards in a unified logistics network; which has managed to make it one of the fastest growing emerging markets in Asia in recent years.
The country’s domestic product reached 409 billion dollars in 2022 and the Asian Development Bank (ADB), predicts that the country’s economy will register a growth of 6.5% in 2023 and 6.8% in 2024, relevant figures despite the impacts derived from the global economic recession, rigorous monetary policy in key markets such as the United States and the European Union, as well as the implications of the conflict between Russia and Ukraine.
In the energy field, it has implemented a dual-focus strategy to successfully meet the “green transition” commitments presented at COP26. This implies maintaining hydroelectric and thermal energy, guaranteeing production capacity, national energy security, guaranteeing an investment of 133 billion dollars in new energy infrastructure by 2030.
The Vietnamese labor market is characterized by its breadth and quality of resources compared to other regional competitors, and has acquired increasing Foreign Direct Investment (FDI).
In a context marked by trade tensions between the United States and China, it has emerged as one of the safe destinations for manufacturers globally, attributed to its open commercial approach, supported by the existence of 15 Free Trade Agreements (FTAs) in force, that establish connections with practically all the world’s leading economies, such as the United States, China, the European Union, ASEAN, Japan, Korea, the United Kingdom, India, among others. This strategy diversifies manufacturing supply chains, thus reducing vulnerability to supply disruptions and geopolitical situations.
In 2021, even in the midst of the COVID-19 pandemic, it was the only country in the world to receive positive ratings from the three main credit rating agencies: Moody’s, Standard & Poor’s and Fitch; In 2022, it rose to fourth position in economic terms within ASEAN and 40th in the world ranking.
Its international commercial activity is among the 20 most prominent countries, considered one of the dynamic economies with the greatest openness.
According to the World Intellectual Property Organization (WIPO), it is one of the countries that have made significant progress in the last decade, climbing 20 positions.
On the global innovation scale, it ranks 48th among 132 nations, while in Southeast Asia it ranks third and ranks 35th in terms of production, leading high-tech imports worldwide.
In a context where conflicts and turbulence arise in various parts of the world, Vietnam has been described as a country with a stable policy; being one of the essential components that contribute to persisting in its approach to economic development, promoting peace and prosperity, generating confidence in international partners who choose to invest in the country.
In these years it has strengthened strategic partnerships and comprehensive collaborations with 17 nations, relationships that have had a significant impact by establishing solid foundations, consolidating a peaceful and stable environment in the international arena.
The alliance between Vietnam and Brazil: 34 years of collaboration and a promising future
Trade volume between Vietnam and Latin America
Vietnam’s exports to Latin America amounted to 12.5 billion dollars, an increase of 46.4% compared to 2020, while imports from Latin America to Vietnam totaled 8.9 billion dollars, experiencing an increase of 20.2% compared to 2020. compared to the year 2021 where bilateral trade reached a volume of 21.4 billion dollars.
In the midst of the economic variations that affected both the global economy and that of Vietnam and Latin American nations in particular, bilateral trade between the two did not stop, reflecting a trade volume of 18.7 billion dollars, registering an increase of 10.5%.
Vietnam’s exports to Latin America reached 10.2 billion dollars, representing an increase of 5.3%, and imports from Latin America to Vietnam amounted to 8.6 billion dollars, experiencing an increase of 5.3%. 17.3%.
It is relevant to mention that, along with the markets with the greatest commercial exchange in the region, such as Brazil, Mexico, Argentina and Chile, several emerging markets such as Panama, Colombia and Peru have shone in Latin America.
Over the course of 2021, the volume of trade between Vietnam and these markets has experienced a notable increase: Colombia has reached 674.7 million dollars, representing an increase of 41.5%; Peru has achieved 633.7 million dollars, increasing by 62%; and with Panama, the volume has reached 465.6 million dollars, an increase of 45.5%.
In terms of trade for Vietnam, Latin America has always been one of the fastest growing regions, representing a potential export market in prominent products such as textiles, clothing, footwear, agricultural and aquatic products, and stands as a fundamental source of raw materials for the Vietnamese manufacturing industry.
With a population of approximately 100 million inhabitants, Vietnam represents a promising market for the export of consumer goods from Latin American nations.
Regarding investments, Vietnam continues to implement a series of large-scale projects in Latin America with investments reaching hundreds of millions of dollars.
Mainly, the Viettel Group’s telecommunications network development projects in Peru and Haiti stand out, as well as in Cuba, projects carried out by the Viglacera Corporation and the Thai Binh Company, covering fields such as infrastructure and production of consumer goods. Conversely, 21 countries have invested in Vietnam with a total of 114 projects, reaching a registered investment capital of around 671 million dollars.
Vietnam and some Latin American countries have successfully strengthened trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific-Ocean Partnership (CPTPP), between Mexico, Chile and Peru; the Free Trade Agreement with Chile (VCFTA) and the Trade Agreement with Cuba. These agreements have generated the constant development of bilateral relations in terms of trade and investment.
The Ministry of Industry and Trade of Vietnam is developing a project that focuses on the development of markets for Latin American countries towards the year 2030, whose objective is to establish sustainable markets for both imports and exports, strengthening industrial and commercial collaboration with nations. region of.
Collaborator at ReporteAsia.
2023-09-23 11:00:25
#Strengthening #trade #investment #relations #Vietnam #Latin #America #News #Asia #ReporteAsia
