The Investment and Trade Promotion Center and the Chile Export Promotion Bureau held a seminar in HCM City on Tuesday to promote investment and strengthen cooperation between Vietnamese and Chilean businesses. — Photo courtesy of ITPC

HCM CITY — A seminar was held by the Investment and Trade Promotion Center (ITPC) and the Chile Export Promotion Bureau (ProChile) in HCM City on Tuesday to promote investment and strengthen cooperation between Vietnamese and Chilean businesses.

Hồ Thị Quyên, deputy director of ITPC, said that expanding into foreign markets, connecting with trade partners, and attracting investment have been key priorities for Việt Nam, especially HCM City, in the context of global economic integration.

She noted that Chile is one of Việt Nam’s important trade partners in South America, exemplified by the Việt Nam-Chile Free Trade Agreement (VCFTA) signed in 2014 and both countries’ participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Chile serves as a gateway between Việt Nam and other South American markets such as Brazil, Argentina, and Peru, she added.

Quyên also highlighted Chile’s dynamic investment environment, characterised by strong economic growth and favourable investment policies.

While HCM City's export turnover to Chile last year was around US$53.3 million, Quyên said the figure remains modest compared to its potential.

Việt Nam has significant opportunities to boost its presence in the Chilean market, especially in the processing industry and agricultural exports, thanks to FTAs and preferential tariffs, she emphasised.

She called for greater cooperation in areas such as exports, manufacturing, engineering, technological transformation, and sustainable development.

Bùi Hoàng Yến, in charge of the southern working group of the Việt Nam Trade Promotion Agency, said that the VCFTA has boosted trade between the two nations, with exports to Chile increasing by 200 per cent in the first ten years of the agreement.

According to reports, Việt Nam’s utilisation rate of preferential certificates of origin (C/Os) varied widely across different markets in 2023.

A preferential certificate of origin certifies that goods in a specific shipment qualify for preferential tariff treatment under a FTA.

Yến noted that VCFTA recorded a ℅ utilisation rate of 40.9 per cent, meaning that $40.9 million worth of goods were exported to Chile under preferential terms.

A high utilisation rate indicates that exporters are effectively leveraging FTAs to improve competitiveness and boost trade performance.

She suggested promising sectors for bilateral cooperation were aligned with Việt Nam’s shift towards a green and digital economy.

They include energy transition, mineral mining and processing (especially copper and lithium from Chile), high-technology, digital transformation, and smart agriculture.

Yến also pointed out that Vietnamese businesses face challenges in trading with Chile, such as logistics costs that are 25-30 per cent higher than in other Asian countries, longer shipping times, intense competition, and technological barriers.

To overcome this, she urged Vietnamese enterprises to invest in technology, upgrade management systems, and stay informed about recent policies and market information.

Pablo Arancibia Salazar, Trade Representative of ProChile, said Việt Nam’s trade balance with four South American countries, including Brazil, Chile, Argentina, and Colombia, has seen notable improvement. 

Seafood, wood processing, and clean energy present significant potential for fostering cooperation between Vietnamese and Chile businesses, Trade Representative of ProChile Pablo Arancibia Salazar said at the seminar. Photo courtesy of ITPC

He encouraged Việt Nam to diversify its export products and stabilise its supply of raw materials to optimise opportunities.

The representative also identified seafood, wood processing, and clean energy as sectors with high potential for cooperation between Vietnamese and Chilean businesses, he added.

To realise this potential, Pablo Arancibia Salazar said both countries should work toward more efficient and cost-effective logistics, simplify regulations, improve market information exchange, and foster stronger ties between their business communities.

ITPC said it would continue organising trade and investment promotion activities, offer consulting service, and support foreign businesses looking to invest in HCM City. 

In 2024, bilateral trade turnover between Chile and Việt Nam reached $1.8 billion, with $1.4 billion in Vietnamese exports of products like seafood, coffee, rice, and cement.

Việt Nam is Chile’s 12th largest supplier and is the fourth-largest Asian exporter to Chile, following China, Japan and South Korea.

As of April 2024, Chile has four investment projects in Việt Nam, with a total registered capital of $295,000. — VNS