Brazilian businesses encouraged to invest in Vietnam

Vietnamese Prime Minister Pham Minh Chinh convinced Brazilian firms to do business in Vietnam which is an attractive investment destination globally at a roundtable discussion in Sao Paolo on September 24.

Addressing Brazilian businesses attending the event, Chinh, who is in Brazil for an official visit, noted that political relations between Vietnam and Brazil are developing well, but bilateral economic, trade and investment cooperation has yet to match their potential.

“With a population of more than 214 million, Brazil is the largest market in South America, but two-way trade between Vietnam and Brazil remains modest at approximately US$7 billion a year,” he said.

According to the PM, geographical distance is no longer a major obstacle nowadays, because aviation and maritime services are developing rapidly, and Vietnam has many international transshipment ports.

“We need to find products that can complement each other, such as importing cotton, soybeans, and corn from Brazil and exporting leather, footwear, textiles, agricultural products, and electronics from Vietnam,” he analysed.

He briefed the participating business executives on Vietnam’s recent development achievements and its advantages in foreign investment, while convincing them to come and do business in the country.

“Vietnam complies with international commitments……We may lack information, are afraid of geographical distance, and don’t fully get to know each other’s markets, so we need to strengthen business connections,” suggested the Vietnamese leader.

Meanwhile, Vietnamese Minister of Industry and Trade Nguyen Hong Dien emphasized that entering the Vietnamese market of 100 million consumers means accessing the large ASEAN market of more than 600 million consumers. At the same time, he expressed hope that the two sides would conclude negotiations on the Vietnam-MERCOSUR Free Trade Agreement.

Dien also noted that Vietnam is currently attracting strong investment from abroad. Recently, Vietnam and the United States upgraded their ties to a comprehensive strategic partnership, creating conditions for a wave of investment shifting.

“We hope that the two countries’ business communities will connect even more strongly and seize opportunities from this investment shift,” said the minister.

In conclusion, PM Chinh voiced his support for Brazil’s proposal to open its trade and industry office in Vietnam. He proposed that businesses of the two countries further promote the science – technology transfer, and strengthen connections to understand each other, share experience, cooperate, and develop together.

The Prime Minister asked businesses of the two countries to concretize cooperation mechanisms into specific programmes and projects, striving to bring two-way trade turnover to US$10 billion by 2025 and US$15-20 billion by 2030 in a more balanced direction.