Forging FTA ties with Latin America

President Mauricio Macri (left) was welcomed by Prime Minister Nguyen Xuan Phuc (right), Photo chinhphu.vn

During his state visit to Vietnam last week, Argentinean President Mauricio Macri said that his nation and the member states of Mercosur, officially titled the Southern Common Market, want to negotiate a free trade agreement (FTA) with Vietnam in the near future.

Consisting of Argentina, Brazil, Paraguay, and Uruguay as full members, Mercosur was established in 1991. It accounts for 70 per cent of South America’s population and has a GDP of $2.7 trillion, equivalent to 76 per cent of the South American continent’s total GDP.

An FTA with Vietnam would mean reduction and removal of import tariffs for relevant member states.

Vietnamese Prime Minister Nguyen Xuan Phuc said that the two sides will establish a joint working group to conduct specific exchanges about the possibility for the negotiation of the FTA. For Vietnam, the Ministry of Industry and Trade will be in charge of founding this group.

Notably, both nations have agreed that their existing comprehensive partnership will be further sharpened, with a vision to be developed into a strategic partnership.

Vietnam and Argentina have also agreed that they will boost bilateral trade, with doors to be opened wider to the products of both sides, especially in agriculture. Vietnam wants to increase the export of litchi, dragon fruit, longan, and mango. The Argentine leader committed that these products will be able to be marketed in his nation.

Two-way trade turnover has doubled from $1.4 billion in 2013 to almost $3 billion last year. Currently, over 100 million Vietnamese mobile phones are sold in Argentina.

President Macri stated that Vietnam is now his country’s fifth-largest trade partner globally, the second-largest from Asia, and that Vietnam is one of the most dynamic nations on the continent, with impressive economic growth.

During the visit, besides the Vietnam-Argentina business forum attended by

hundreds of enterprises, including over 80 from Argentina, the first meeting was organised between leaders of Vietnam’s telecommunications giant Viettel and

Argentinean Minister of Modernisation Andres Ibarra about IT and telecommunications co-operation.

Jorge Faurie, Argentine Minister of Foreign Affairs and Worship, said that he once visited Vietnam over two decades ago, however, the country “is now quite

different.”

“I see the country strongly growing at an annual rate of over 6 per cent, with great demand for consumption, especially demand for products which are also opportunities for Argentine businesses,” he said.

Since late 2017, four Argentine business delegations, including hundreds of enterprises, have come to Vietnam to seek business opportunities in many sectors, such as agriculture, foodstuffs, and pharmaceuticals.

Baldini Estela Mónica, business manager of Conarpesa Continental Armadores de Pesca S.A., said that the firm currently exports agro-aquatic products to 19 overseas markets, and wants to further export shrimp and squid products to Vietnam.

“Vietnam is a large consumer of these products, and this is an opportunity for us,” Mónica said.

Like many other Argentine firms, Graneles Sudamericanos, an agricultural, grain, and feed merchandising company, is also seeking to establish its presence in Vietnam.

“We offer grains, oil seeds, flour, feed ingredients, and other specialities,” said company representative Juan Carlos Trigo.

Meanwhile, Arcor Saic wants to export confectionery and foodstuff products to Vietnam where the demand for these products are growing by double digits.

“Arcor identifies opportunities in Vietnam and wants to develop flavours and product presentation for increasingly selective consumers,” said the firm’s Ana Simonelli.

According to Vietnam’s Ministry of Planning and Investment, Argentina currently has four investment projects in Vietnam, registered at only $284,000.