The Chile-Vietnam free trade agreement (FTA) which comes into effect this year is seen to boost agro-food exchange between the two sides, according to the Chilean Ministry of Agriculture’s Bureau for Agricultural Studies and Policies.

Under the agreement, 72 percent of Chilean goods exported to Vietnam will enjoy a tax rate of zero. The figure will be 83 percent within the next 11 years.

Meanwhile, 83 percent of Vietnamese export items will enjoy the rate right after the FTA takes effect.

In the latest report from the bureau, it maintained that rising Chilean exports to Vietnam, which include fresh fruits, pork and beef is due to Vietnamese people’s increasing income and consumption.

Agricultural, forestry and breeding products make up 10.7 percent of the two countries’ trade turnover. In 2012, two-way trade of these items reached 60.2 million USD, of which Chile’s exports to Vietnam hit 48.4 million USD, up 23.8 percent over the previous year.

In the January-September period last year, Chilean exports stood at 37 million USD, up 3.2 percent against the same period in 2012, and imports hit 17.3 million USD, up 166 percent.

Chile mainly exports grapes and wines to Vietnam and imports rice, coffee, tapioca and tea.

Source: VNA