Vietnam-El Salvador Business Ties boilstered

Vietnam and El Salvador will jointly organize trade and investment promotion programs and boost their business cooperation. That is the content of the recent meeting in Hanoi between VCCI Executive Vice President Nguyen Quang Vinh and Ambassador of El Salvador Ruben Omar Orozco Burgos.

VCCI Executive Vice President Nguyen Quang Vinh (R) receives Ambassador of El Salvador Ruben Omar Orozco Burgos

At the meeting, the Ambassador of El Salvador said that strengthening trade promotion and service exchange is the foundation for bolstering Vietnam-El Salvador cooperation ties. El Salvador signed free trade agreements (FTAs) with some countries and regions such as the EU, Mexico, Chile, Colombia, Central American countries and Latin America. In particular, El Salvador is favorably located between South America and North America, becoming a gateway for exporting and transporting goods to the United States as well as to Latin American countries.

He added that currently advantageous products and fields that Vietnam and El Salvador can promote trade and cooperation are textile, rubber, machinery and equipment, mechanical engineering and agriculture. Vietnam is strong in agricultural products, especially coffee, that can be exported to El Salvador.

Mr. Nguyen Quang Vinh emphasized that, in addition to strengthening trade cooperation to increase exports to balance the trade (Vietnam currently has a trade surplus with El Salvador), the two sides can organize offline or online meetings for businesses to introduce their products and services, attract investment, find ways to address their long geographical distance. These meetings will introduce policies, business opportunities and markets to the business communities of both sides. Providing detailed and timely information will greatly assist in enhancing trade value in the future.

Especially, according to Mr. Vinh, tourism is one of Vietnam’s advantages, which can be introduced to El Salvador market - the most populous country in Central America with diverse products and destinations. In return, El Salvador can also introduce new tourism services to Vietnamese tourists who are looking for different tourism products.

Vietnam and El Salvador established diplomatic relations in 2010. In August 2017, El Salvador opened the Honorary Consular Office in Ho Chi Minh City on the occasion of the visit by its Deputy Minister of Foreign Affairs to Vietnam. On February 15, 2023, El Salvador's Foreign Minister Alexandra Hill Tinoco opened the country's first embassy in ASEAN, which is located in Hanoi.

Economically and commercially, the two countries still have vast room for development, especially in telecommunications, agriculture and fisheries. The two-way trade value kept up growth momentum in the past time, from US$50.6 million in 2020 to US$126.2 million in 2021 and US$116.9 million in 2022. The two countries have many strengths that complement each other, especially in agriculture, fisheries, science-technology and telecommunications.

Vietnam’s main exports to El Salvador are telephones and components, machinery and equipment and spare parts and paper while its imports from El Salvador are mainly computers, electronic products, components and seafood products.

By Anh Mai, Vietnam Business Forum