Vietnamese President Luong Cuong’s upcoming visit to Peru is expected to catalyze cooperation in promising areas, as bilateral trade continues its impressive trajectory, doubling to $600 million in 2022 from 2014 levels.
Vung Tàu (South). Photo: VNA” cms-photo-caption=”Transformation des produits aquatiques pour l’exportation chez la SARL des produits aquatiques, dans la ville de Vung Tàu (Sud). Photo : VNA”/> Processing of aquatic products for export at the Aquatic Products SARL, in the city of Vung Tàu (South). Photo: VNA
Hanoi (VNA) – Vietnamese President Luong Cuong’s upcoming visit to Peru is expected to catalyze cooperation in promising areas, as bilateral trade continues its impressive trajectory, doubling to $600 million in 2022 from the 2014 level.
Citing data from the General Department of Vietnam Customs, the Euro-American Market Department of the Ministry of Industry and Trade (MoIT) reported that trade between Vietnam and Peru reached $486 million in 2023, of which 439 million dollars in Vietnamese exports.
During the January-September period, trade reached $389.69 million, with Vietnamese exports to Peru totaling $336.99 million. This growth has positioned Peru as Vietnam’s sixth trading partner in Latin America.
Top Vietnamese exports – phones, electronics, shoes, cement, plastics, clothing and aquatic products – are entering the Peruvian market, while Peru is doing the same with its flagship exports such as fish meal, ore antimony and various mineral products.
Despite the headwinds in the global economy, the two countries, members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), are ready to boost trade turnover, capitalizing on the preferential terms of this pact in various sectors.
The Vietnam-Peru Intergovernmental Committee, which meets alternately every two years and is co-chaired by a Vietnamese Deputy Minister of Industry and Commerce and a Peruvian Deputy Foreign Minister, serves as an effective mechanism to propel economic ties bilateral and multilateral.
Peru is recognized as a dynamic economy with a relatively open foreign economic policy. It is a member of most major international and regional institutions, including the World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC) Forum and the Pacific Alliance (PA). With 22 free trade agreements (FTAs) in force with 58 countries, Peru stands out as one of the Latin American countries with the largest number of FTAs.
The majority of Peru’s import-export companies are small and medium-sized enterprises, which creates fertile ground for the penetration and development of Vietnamese products in the market. Additionally, Peru could serve as a gateway for Vietnamese products to access neighboring markets such as Ecuador, Colombia, Bolivia and Brazil.
The ongoing construction of the Chancay megaport north of the capital Lima is a game changer, strategically positioned to optimize shipping times and costs for Vietnamese businesses. According to estimates, shipping times could be reduced by 30% to 50%, while logistics costs could drop by up to 20%, which would significantly improve Vietnam’s competitiveness in this Latin American market.
However, challenges such as geographic remoteness, language barriers and fierce competition remain. To overcome these obstacles, Vietnamese exporters are encouraged to actively participate in Peruvian trade fairs, promote Vietnamese culture through local media, and establish strong logistics networks.
During a recent working session with the Secretary General of the Peruvian Ministry of Foreign Affairs, Eric Anderson, Vietnamese Deputy Minister of Industry and Trade, Nguyên Hoang Long, proposed that Peru facilitate the exchange of delegations, signs cooperation agreements in mutually beneficial areas and maximizes the opportunities offered by the CPTPP.
Nguyen Hoang Long also highlighted the potential for collaboration in the development of mining, organic agricultural products, food processing and tourism. He called for a focus on cutting-edge industries aligned with current trends, particularly in green technologies, the digital economy and e-commerce.
MoIT remains committed to supporting businesses by facilitating their relations with Peruvian state bodies through diplomatic and commercial channels, ensuring that any issues that arise are promptly addressed, he added. – VNA
