According to Mr. Tran Duy Dong, deputy director general of the Department of American Market under the Ministry of Industry and Trade, Latin America, which is home to 600 million people with high demand for manufactured and consumer goods, is a potential export market for Vietnam.
However, Mr. Dong also pointed out several market barriers to Vietnamese shipments, such as insufficient information, language, inconvenient transportation and payment methods...
Therefore, he emphasized the need to optimize exports to Latin America via informing Vietnamese businesses about trading opportunities, improving online supporting services for export, forming groups to visit trade fairs and evaluate markets...
Peru is considered to be a promising market. Up to 75% of Peru’s import-export companies are SMEs and consumers are open to imported goods, which can be re-exported to Colombia, Ecuador, Bolivia and Brazil.
Mr. Luis Tsuboyama, chargé d'affaires of the Embassy of Peru in Vietnam, affirmed that trade activities between two countries have grown significantly over the past two years; however, the volume remained below potential.
From just under $50 million worth of bilateral trade before 2005, trade between Vietnam and Peru has grown 159% during the 2005-2010 period and further increased 74.3% two years later.
Since the establishment of the Embassy of Peru in Vietnam in 2013, trade relations between the two countries have been on the rise, bilateral trade value has increased 104% to $350 million as of 2014.
In the first nine months of 2015, Peru has exported $50 million USD worth of goods to and imported $250 million from Vietnam.
Mr. Luis Tsuboyama said that upon joining the Trans-Pacific Partnership (TPP), Peru is now able to reach out to five new markets including Vietnam. Vietnam will exempt 66% of import duties, an equivalent of 98% of Peru’s exports to Vietnam. Duties on some products such as salmon, tuna, frozen anchovy and fish oil will be removed immediately after TPP has taken effect.
Vice versa, Peru is committed to removing 80.7% of import duties for Vietnam, equivalent of 62.1% of Vietnam’s exports. Peru will exempt 99.4% of duties in the 17th year of TPP.
He noted that besides the ten export staples from Vietnam even before the implementation of TPP, Vietnam is potential to export cashew, longan, lychee and dragonfruit when meeting requirements of Peru’s Sanitary and Phytosanitary, potentially next year. Furthermore, Vietnamese companies are also able to enter Peru’s public procurement, namely commodities, service and construction.