Vietnamese-Chilean trade has strongly developed at an average growth of 26 percent per year since 2008. The tariff reduction thanks to the signing of the Vietnam-Chile FTA has had a positive impact on bilateral trade. In the first three months of this year, bilateral trade between the two countries increased by 17 percent compared to the same period last year. Chilean goods such as mandarins, frozen meat, almonds, fresh oranges and electric wire have been available in the Vietnamese market.

Trade cooperation between Vietnam and Chile is a mutual relationship, rather than direct competition as compared with other countries in the same region. For example, Chile has potential in terms of salmon exports while Basa fish exports remain Vietnam’s strength. We have the products you need and we also wish to import your goods such as garments and textiles, leather and footwear.

 How has the Vietnam-Chile FTA affected investment cooperation?

Vietnamese companies are investing in a number of Latin American countries such as Peru and Venezuela and Caribbean countries such as Haiti but they have not yet invested in Chile. However, Chilean investors have paid special attention to investment in Vietnam. For example, CFR-Recaline invested about US$80 million in the lab in Vietnam while the Tiaxa Company specializing in technology and communications was established in Hanoi in 2011. During the 2007-2009 period, Chile-Quinenco opened representative offices in Vietnam with the goals of mining, tourism development and beer production. Thanks to the signing of the Vietnam-Chile FTA, investors will be offered more opportunities to enter each other’s market.

What should Vietnam and Chile do to make more of these good opportunities?

The two countries already have strong trade cooperation. However, the current deficiencies remain to be addressed. The Vietnam-Chile FTA has proven to be an extremely useful tool in cutting tariffs. However, with the implementation of an agreement, Chile and Vietnam need to organize meetings between relevant committees to agree solutions for non-tariff barriers.

Importers and exporters need to be more active in capturing and exchanging information in order to agree effective business methods. In addition, trade offices need to organize more seminars and trade promotion activities.

According to the figures from the General Department of Vietnam Customs, as of July 2014, Vietnam’s export turnover to Chile reached more than US$250 million, an increase of 102 percent compared to the same period last year while import turnover stood at US$203 million, an increase of 12 percent compared to the same period in 2013. Thanks to the Vietnam-Chile FTA, Vietnam achieved a trade surplus with Chile in the first seven months of this year.