Vietnam-Brazil Relations (Part 2): There is still much room for development

Over the nearly 35 years of establishing diplomatic relations, especially since the establishment of the comprehensive partnership in 2007, Vietnam-Brazil relations have developed positively in all areas. Political relations between the two countries are becoming closer and more trustworthy, while economic and trade relations are increasing. However, according to analysts, the two countries still have much room to develop the bilateral relationship to new heights.

President Vo Van Thuong receives Brazilian Ambassador Marco Farani presenting credentials Photo Thong Nhat – VNA

Analysts say that the economies of Vietnam and Brazil have many fields and products that are highly complementary such as energy, aviation, agriculture, infrastructure, healthcare, biology, mining, etc. Not only complementing each other, Brazil can become a bridge to help Vietnam access the markets of Latin American countries and the Southern Common Market (MERCOSUR), while Vietnam can become a bridge to help Brazil access the large ASEAN market with more than 650 million people and a larger market with 800 million people of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) of which Vietnam is a member, which has been in effect since January 2019.

In an article recently published on reporteasia.com, author Ricky Lau said that Vietnam is Brazil's main trading partner in Southeast Asia, and vice versa, Brazil is Vietnam's largest trading partner in Latin America. Until 2001, two-way trade turnover was still at an insignificant level. However, despite challenges such as the global situation or the COVID-19 pandemic, trade between the two countries has continued to increase. In 2022, the total bilateral trade value reached a record 6.78 billion USD, of which the value of Brazilian goods exported to Vietnam reached 4.55 billion USD and imports reached 2.23 billion USD. "These figures represent a significant and outstanding growth in bilateral trade," expert Ricky Lau wrote.

However, author Ricky Lau still believes that two-way trade still has a lot of room to grow, especially in the context that Vietnam and MERCOSUR member countries are studying the possibility of negotiating the MERCOSUR-Vietnam Free Trade Agreement. Vietnam and Brazil have many opportunities for cooperation in areas such as agriculture, food security, global energy security, renewable energy, science and technology, climate change, digital transformation and South-South cooperation.

Sharing the same view, Brazilian Ambassador Extraordinary and Plenipotentiary to Vietnam Marco Farani affirmed: "The relationship between Brazil and Vietnam has a lot of potential despite the great distance between the two countries."

In a recent interview with the Vietnamese press, Ambassador Farani said that although trade between the two countries has reached nearly 7 billion USD, there is still great potential to be exploited in the fields of agriculture, green energy and defense. He emphasized: “Brazil is optimistic about the growth and dynamism of the Vietnamese economy. Vietnam is a fast-growing country and can become a middle-income country in the next 10 years. Brazil has 220 million people - a large population. Brazil is rich in natural resources and also has a highly developed agriculture. Therefore, there are many areas in which we can cooperate together.”

Ambassador Farani also pointed out that renewable energy is a promising area of ​​cooperation between the two countries. According to Mr. Farani, Brazil is a typical example of green economic development. About 90% of Brazil's energy today is renewable energy. Therefore, he said: "We can share most of these experiences with Vietnam, especially in the ethanol sector, so that Vietnam can achieve its goal of net zero emissions by 2050."

On the other hand, Ambassador Farani also said that Vietnam and Brazil have many prospects for cooperation in trade, tourism, agriculture, energy and education. In addition, he also hopes that the two countries will have more political connections and political dialogue. The Ambassador said: “Both countries are located in the Southern Hemisphere. The two countries share the same aspirations and are both leading countries and have special importance in the region. Therefore, it is very important that the two leaders of Vietnam and Brazil meet and start a dialogue on these issues.”

Vietnamese Ambassador to Brazil Pham Thi Kim Hoa visits Goiás state. Photo: VNA

For her part, Vietnamese Ambassador to Brazil Pham Thi Kim Hoa emphasized that for Vietnam, Brazil is the number 1 important partner in the South American region. With the 5th largest geographical location in the world and a population of over 211 million people, Brazil is truly a potential market for Vietnamese businesses. On the other hand, Brazil is the gateway for Vietnam to enter the Latin American markets, while Vietnam is the door for Brazilian businesses to penetrate the ASEAN market and other Asian countries.

In an interview with VNA, Ambassador Pham Thi Kim Hoa said: "Vietnam and Brazil have their own strengths and potential in economics, trade and technology, and cooperation with each other will create a practical resonance effect serving the socio-economic development and international integration of each country."

She also made an interesting suggestion when she said that Vietnam and Brazil are both world leaders in coffee exports, with Brazil being strong in Arabica coffee and Vietnam being famous for Robusta coffee. It would be interesting if in the future we could combine the two types of coffee to create a new coffee line with a unique flavor.

Meanwhile, Dr. Ruvislei González Saez, a senior researcher at the Cuban Center for International Policy Studies, said that Brazil and Vietnam are the world's first and second largest coffee exporters. The two countries are competitors in this industry, but they complement each other in other areas, especially thanks to Vietnam's ability to export technological equipment and Brazil's agricultural products. On the other hand, Vietnam is starting to increase its investment abroad, especially in the automobile and renewable energy sectors, which could be an opportunity for Vietnamese companies like VINFAST to penetrate the Brazilian market.

Dr. González Saez commented that Brazil's term as Chair of the Group of 20 leading developed and emerging economies (G20) in 2024, coinciding with the 35th anniversary of bilateral relations, will be a "golden moment" to elevate the long-term relationship (between Vietnam and Brazil) from both a political-diplomatic and economic-commercial perspective./.

Thu Van

See more: Vietnam-Brazil relations (Part 1): Far but close