Improve quality and competitiveness of goods exported to the Brazilian market

According to the Vietnam Trade Office in Brazil, Brazil is currently a very large and potential market for Vietnamese goods, because this is a market with not too strict standards and very diverse tastes. Therefore, many strong Vietnamese products can be accepted in this market.

Up to now, Brazil continues to maintain its position as Vietnam's largest trading partner in Latin America. In 2023, trade between Vietnam and Brazil will reach 7.11 billion USD, an increase of 5% compared to 2022.

According to the General Department of Customs, in the first two months of 2024, the total import-export turnover of goods between the two countries is estimated at 1.52 billion USD, up 39% over the same period; of which Vietnam exported to Brazil 453 million USD, imported from Brazil with a value of 1.06 billion USD, up 47% over the same period last year.

In the first two months of the year, Vietnamese goods exported to Brazil were mainly textiles, machinery and equipment, handbags, suitcases, means of transport and spare parts, iron and steel of all kinds... Seafood products are having good export momentum and stable growth (up 84.4%).

Regarding imports, Vietnam's main imported products from Brazil increased sharply, including raw materials for production, corn, raw plastics, other food products, animal feed and raw materials... The reason for the increase in imports is to meet domestic production needs and serve production for export. Imported products from Brazil are of good and stable quality, at the same time, the prices are very competitive and the goods are abundant, well meeting the demand for raw materials for domestic production.

With the bright spot in bilateral relations being economic and trade, by 2025, Vietnam and Brazil will strive to increase bilateral turnover to 10 billion USD in 2025 and 15 billion USD in 2030.

Nâng cao chất lượng, năng lực cạnh tranh cho hàng hóa xuất khẩu sang thị trường Brazil

Seafood products are having good export momentum and stable growth in the Brazilian market (Illustration photo)

Mr. Ngo Xuan Ty - Head of the Vietnam Trade Office in Brazil said that although there are many bright spots in trade cooperation between the two countries, Vietnam's export of goods to the Brazilian market is facing many difficulties, first of all due to increased transportation and logistics costs (not reduced after the pandemic), along with the increase in raw material prices since the pandemic...

“ The war situation in Ukraine and Russia, conflicts in the Middle East and the Red Sea have negatively impacted export and consumption activities, affecting Vietnam's production and export; causing a chain reaction to import and export activities between Vietnam and other countries, including Brazil ” - Mr. Ngo Xuan Ty analyzed and said that, in order to have stability and development in export, enterprises and associations need to innovate and overcome limitations to have high-quality and stable export products, maintaining the trend of price competition with export competitors.

However, according to the Trade Office, although there are many strengths to increase exports to the Brazilian market, currently businesses of the two countries mainly carry out trade and import-export activities to meet production and domestic market needs for both sides without any investors from each other.

Not to mention, currently import and export activities between the two countries still face many barriers, such as: Geographical distance; means of transport are not convenient to connect people of the two countries, as well as logistics not meeting import and export needs... Along with that is fierce competition in quality and price from export competitors from China, Thailand, Indonesia, Malaysia, Philippines, Singapore... On the other hand, currently businesses, localities, and associations are somewhat subjective, not really proactive and determined in expanding the market and protecting the domestic market and traditional markets.

Close cooperation between domestic enterprises is needed to expand the space for Vietnam - Brazil cooperation (Illustration photo)

Providing solutions to promote exports and increase the presence of Vietnamese goods in the Brazilian market, the Head of the Vietnam Trade Office in Brazil recommended that the domestic business community should increase its direct presence in the Brazilian market through close coordination with relevant agencies in the Ministry of Industry and Trade to participate in direct trade promotion programs, promotional campaigns, product introductions, fairs, exhibitions, etc.

In addition, there needs to be close links between domestic enterprises to build a reputable export business community and protect it to expand the market. At the same time, it is necessary to do better in building a reputable brand, with constantly improved quality and competitive prices.

Regarding logistics, the Trade Office proposed that the Ministry of Industry and Trade recommend that the Government promote the development of the logistics sector, improve Vietnam's logistics capacity, help businesses facilitate exports, thereby improving competitiveness with goods from markets such as China, Thailand, Indonesia, Malaysia, Singapore... The Trade Office also recommended that the Ministry of Industry and Trade propose that the Government open a connecting flight route with Sao Paulo, Brazil, because this is the largest trading gateway in the South American region, and will open up opportunities to enhance trade cooperation between the two sides.

Source