On the occasion of the 45th anniversary of the establishment of diplomatic relations between Vietnam and Chile (1971-2016), Vietnam Business Forum has the honour to publish an article by H.E. Ambassador Claudio Quintana of Chile to Vietnam on trade and investment relations between Vietnam and Chile.
In trade relations, Vietnam is an important partner of Chile. It is diversified to cover various fields, has a strong history and a most promising future.
The bilateral Free Trade Agreement, in force since January 1, 2014,is also the first FTA Vietnam signed with a Latin American country. It covers over 9,000 products, opening up new opportunities for bilateral trade and facilitating access to other markets in the regions.
By December 2015, the bilateral trade value attained US$874 million, up 15 per cent compared to the previous year. In spite of negative impacts on Chilean export value such as lower copper price – a main Chilean export, there were new upsurges in other items namely wine of 36 per cent (worth US$12 million) and forestry products 12 per cent (US$52 million).
While in the same period, Vietnamese exports to Chile increased 59 per cent, exceeding the mark of US$600, mainly in consumer products.
Besides, Vietnam and Chile have signed Trans Pacific Partnership (TPP) together with 10 other members opening up trade relations in Asia-Pacific regions.
With TPP, members can increase the exchanges of products, abolish tax barriers existing in bilateral trade agreements and open up new cooperation in trade, service, SMEs and settlement of disputes. It is truly an important agreement in coping with challenges in the 21st century.
Both Chile and Vietnam have the potential to diversify their trade exchange; however, they should set the course in line with their specific conditions.
Chile has developed cooperation in various fields. For example, the tripartite cooperation with ASEAN has been implemented in the last three years with the contribution of Agricultural Research Institute of Chile and Hanoi University of Agriculture (now Hanoi Institute of Agriculture) introducing the planting of Quinoa in Vietnam and opening up opportunities for new cooperation.
Both countries will benefit from economic integration by participating in value chains and facilitating trade exchanges.
Chile wishes to develop special relations with Vietnam as a major trade partner.
In 2016, for its turn, Chile is Pacific Alliance Chairman with the participation of Mexico, Colombia and Peru. Chile has repeatedly expressed its commitment to intensifying relations between the Alliance and ASEAN, enhancing the relationship between neighbouring Latin American countries and other countries in Asia-Pacific region, promoting the potentials of this seaport country.
The Pacific has been strengthened by trade relations in the 21st century, and Chile admires the fast and sustainable development and economic integration of Vietnam with the world.
Celebrating the 45th anniversary of diplomatic relations between Chile and Vietnam, we can together take stock of achievements and set out challenges for the future, defining areas of mutual concern as well as efforts to continue success.
Indeed, our bilateral relations are traditional, successful and most promising.
Vietnamese
