According to the official, between 2007 and 2022, trade between the countries saw a 13-fold surge, to 4.88 billion USD from 378 million USD. Argentina currently stands as one of the leading suppliers of corn and animal feed to Vietnam.
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Vietnam's main export products to Argentina include phones and components; computers, electronic products and components; and footwear, among others. |
In 2023, the bilateral trade stood at 3.45 billion USD, down 29.6% year-on-year. Vietnam’s import volume from the South American partner suffered a decline last year due to a historic drought hitting Argentina in the 2022-2023 crop season and causing a 54% reduction in its agricultural output. However, the farming productivity is projected to increase significantly in the 2023-2024 crop thanks to favorable weather conditions, hence a strong rebound of the import expected this year.
Regarding investment, Argentina currently runs five projects worth around 160,000 USD in Vietnam.
Khoi further noted that both countries share many similarities and have great potential to become hubs for goods transit, investment capital flow, and connections with other countries in the region and the world. As an active member of the Southern Common Market (MERCOSUR), Argentina serves as a gateway for Vietnamese goods to penetrate the South American market. Meanwhile, Vietnam acts as a bridge for Argentina to enter the Association of Southeast Asian Nations (ASEAN) and Asia-Pacific.
He said the strong traditional relationship between the two nations, coupled with the attractiveness of each market, serves as a driving force and an attraction for them to get closer, expand, and develop their comprehensive relations, especially in the economic and trade sectors.
He went on listing challenges facing the sides’ cooperation, which include geographical distance, the lack of direct cargo and passenger transport routes, and differences in languages and business customs.
Khoi recommended Vietnam and Argentina focus on diversifying exports and imports and enhancing business cooperation regarding such potential goods as textiles, footwear, farm produce, wood products, and handicrafts. It is also necessary for the sides to coordinate the implementation of trade and investment promotion activities and push for the negotiations of a free trade agreement between Vietnam and MERCOSUR.
He also highlighted the expansion of technical and investment collaboration in sectors where both sides have strengths and demand like high-tech agriculture, agro-processing, biotechnology, health care, and green energy.
Source: VNA