Businesses to tap Brazil market, increase exportsUpdate: 11/19/2014
(VOV) - Vietnamese businesses should capitalise on Brazil’s massive import tax reductions to further penetrate this large South American market, according to the Vietnam Trade Office in Brazil.
The Brazilian government recently decided to temporarily slash import duties from 16% to 2% on 240 machinery and equipment and 10 computing and telecommunication products. The decision is in effect from June 2014 to December 31, 2015.
Brazil is the world’s seventh largest economy, and two-way trade between Vietnam and Brazil is increasing rapidly, trailing after the US in the Americas.
In 2013 alone, bilateral trade value surpassed the US$2 billion mark, making Brazil Vietnam’s largest trade partner in Latin America.
The first seven months of 2013 saw impressive trade growth between the two sides, with value hitting more than US$1.7 billion, of which Vietnamese exports fetched US$723 million.
|Manufacturing integrated circuits for domestic use and export at 4P Company in Hung Yen (Photo:TTO)|
Currently, Vietnam mainly exports mobile phones and accessories, footwear, frozen fish fillets, artificial fibre, and integrated circuits.
Brazil mostly ships to Vietnam corn seeds, soybean and by-products resulting from the extraction of soybean oil, tobacco materials, cotton, leather and footwear accessories, and chicken by-products.
Brazil is rich in natural resources, a large potential market, and the most advanced industry in Latin America. It is a major economy of the Common Market of South America (MERCOSUR), the group of 25 (G-25), and the BRICS group (Brazil, Russia, India, China, and South Africa).
Experts say in its foreign affairs policy, Vietnam should consider Brazil an important partner to boost economic, trade and investment cooperation.
The Vietnam Trade Office in Brazil recommends that Vietnamese businesses boost trade promotions in Brazil to deeper penetrate and expand this market in order to increase their exports.
If market expansion measures are put in place, two-way trade between Vietnam and Brazil is likely to hit US$3 billion this year, it forecasts.