Overview of Vietnam Trade Office in Chile

Increase bilateral and multilateral trade cooperation

Vietnam and Chile established diplomatic relations on March 25, 1971. By May 2007, Vietnam and Chile had established a comprehensive partnership and signed a bilateral free trade agreement in 2011. The Vietnam-Chile Free Trade Agreement (VCFTA) was signed in 2014. Together they joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018.

Vietnam – Chile Free Trade Agreement. (Source: mundomaritimo.cl)

Over the past 53 years of establishing diplomatic relations (1971-2024), the friendship and cooperation between Vietnam and Chile have been continuously strengthened and developed in all fields. In recent years, Vietnam-Chile trade relations have made impressive progress and achieved positive results.

In the context of globalization and extensive participation in multilateral and bilateral trade agreements, both Vietnam and Chile have increased cooperation, not only in the field of trade in goods, but also in areas such as investment, technology and renewable energy. Businesses from both countries are looking for new opportunities to penetrate each other's markets, taking advantage of preferential tariff policies and reducing trade barriers.

The governments of both countries also play an important role in promoting a favorable business environment, with policies that support businesses, promote transparency and improve the efficiency of trade processes.

According to the Ministry of Industry and Trade , before the VCFTA was signed, Vietnamese goods were subject to import tax in Chile (an average of 6%) and Vietnam always had a trade deficit with Chile. However, since 2014, Vietnam has always had a trade surplus with Chile and especially, after 10 years since the FTA took effect, Vietnam's exports to Chile increased 5 times. At the same time, businesses of the two countries have effectively taken advantage of the opportunities from the FTA to exploit each other's markets.

Citing data from the General Department of Vietnam Customs, a representative of the Department of European and American Markets (Ministry of Industry and Trade) said that in 2023, in the context of the global economy facing many challenges, bilateral trade turnover between Vietnam and Chile reached 1.57 billion USD; of which, Vietnam's exports reached 1.2 billion USD, imports reached 375.16 million USD.

In the first 9 months of 2024 alone, bilateral trade reached 1.29 billion USD; of which, Vietnam exported 1.04 billion USD and imported 254.5 million USD from Chile. Notably, Chile is currently one of Vietnam's four largest trading partners in Latin America (after Brazil, Mexico and Argentina).

Vietnam's main export products to Chile are mainly consumer goods such as: phones of all kinds and components; machinery, equipment, tools and spare parts; textiles; shoes of all kinds; clinker and cement; rice; handbags, wallets, suitcases, hats, umbrellas; coffee; interior products made from materials other than wood... Among them, phones of all kinds and components are the items with the highest proportion in the structure of Vietnam's exports to Chile.

On the other hand, Vietnam imports from Chile mainly raw materials for export production such as: copper for making electric wires and cables, planted wood for producing wooden furniture, fish meal for processing animal feed, poultry and shrimp and fish farming, paper pulp, wine, fresh fruit, animal and vegetable oils and fats, animal feed and raw materials, scrap iron and steel, etc.

The VCFTA has created a boost for economic and trade relations between the two countries. In Vietnam, businesses are effectively taking advantage of the incentives of the Vietnam – Chile FTA and Chile is one of the leading markets in terms of preferential utilization rate with the rate of using certificates of origin (C/O) form VC.

In addition to VCFTA, trade between Vietnam and Chile also received a “boost” from the CPTPP Agreement. Not only that, Chile is a member of the Pacific Alliance, which helps Vietnamese businesses not only access the Chilean market but also expand opportunities to other member countries such as Peru, Colombia and Mexico.

Notes for Vietnamese businesses

According to the Vietnam Trade Office in Chile (concurrently in charge of Ecuador), with a population of over 19 million people and high per capita income, Chile is one of the countries with large consumer demand in the South American region. Vietnamese products are highly appreciated by Chilean consumers. This creates favorable opportunities for Vietnamese enterprises to export. With tariff incentives from VCFTA or CPTPP, Chile is a potential market for domestic enterprises.

Minister Nguyen Hong Dien received the Ambassador Extraordinary and Plenipotentiary of the Republic of Chile to Vietnam on July 6, 2023.

To boost exports to Chile, in the coming time, state management agencies will continue to implement a series of synchronous and effective solutions, focusing on improving the competitiveness of Vietnamese goods, optimizing the legal environment and expanding market access opportunities.

For businesses, first of all, they need to invest in market research and understanding. Along with that, improving product quality and applying international standards are key factors. In addition, businesses need to be proactive in finding partners and establishing long-term business relationships with distributors and importers in Chile. Building a network of trusted partners not only helps businesses minimize risks but also creates favorable conditions for market expansion.

Notably, businesses need to make the most of the incentives from the Free Trade Agreement (FTA) between Vietnam and Chile. To do this, businesses need to master the regulations on goods origin, customs procedures, as well as related tariff policies, thereby minimizing costs and enhancing competitive advantages. Close cooperation with trade promotion organizations, embassies and Vietnamese trade offices in Chile is also an important solution, helping businesses update market information, seek new opportunities and support in solving arising problems.

Finally, businesses need to develop a long-term export strategy that focuses not only on sales growth but also on sustainability and stability.

Vietnam Trade Office in Chile (Concurrently in Ecuador)

Address: Av. Eliodoro Yañez #2887, Providencia, Santiago, Chile

Phone: (+56-2) 2232-1135; (+56-2) 2232-1394

Fax: (+56-2) 2334-1159

Email:[email protected] ; [email protected]

Website: http://www.vietradeinchile.gov.vn

Head of Sales, Sau Thi Thu Thuy

Phone: 5622321135562232139456989201942

Email: [email protected], [email protected], [email protected]

Source: https://congthuong.vn/tong-quan-thuong-vu-viet-nam-tai-chile-367099.html