A wave of investment in logistics infrastructure across South America is expected to provide a significant boost for Vietnamese exporters seeking to expand their presence in Argentina, Uruguay, Paraguay and neighboring markets in the coming years.

According to the Vietnam Trade Office in Argentina, Argentina’s preliminary selection of a consortium to upgrade the strategic Paraná–Paraguay waterway could help reduce logistics costs and improve transport efficiency, creating more favorable conditions for trade flows between Vietnam and South America.

The development is particularly noteworthy for Vietnamese businesses, as the region has long been regarded as a promising market whose potential has been constrained by relatively high transportation and logistics costs.

Once river and maritime transport infrastructure is upgraded and better integrated, Vietnam’s key export products—including coffee, cashew nuts, pepper, processed seafood, textiles and footwear, furniture, consumer goods and electronic components—could gain stronger access to South American markets.

The Trade Office noted that Argentina, the largest economy among the three countries, is showing signs of improving economic stability. Consecutive declines in inflation are expected to support consumer confidence and create a more favorable environment for importers. While demand for some non-essential products remains cautious, rising food prices above the overall inflation rate indicate stable demand for essential goods, presenting opportunities for Vietnamese exporters of agricultural products, processed foods and consumer staples.

Meanwhile, Uruguay continues to strengthen its position as a regional logistics hub, offering Vietnamese businesses greater flexibility in transportation and access to efficient warehousing and transshipment services. This could facilitate deeper market penetration into Uruguay, Paraguay and the wider Southern Common Market (Mercosur).

Paraguay’s appeal lies in its macroeconomic stability rather than rapid consumer growth. Low inflation enables importers, distributors and retailers to better manage costs and plan business activities. Demand for food and non-alcoholic beverages remains resilient, creating favorable conditions for Vietnamese exporters of agricultural products, food items and other essential consumer goods.

As logistics networks across the region continue to improve, South America is increasingly emerging as a more accessible and attractive destination for Vietnamese exporters seeking to diversify markets and strengthen their global trade footprint.

Source: VnEconomy