Vietnam and Uruguay boast huge potential to expand trade links

According to Deputy Minister of Industry and Trade Do Thang Hai, Uruguay represents one of the country’s potential trade partners in Latin America. However, trade links between the both sides remains modest and has yet to meet the potential.

According to figures given by the Europe-American Market Department under the Ministry of Industry and Trade (MoIT), last year’s two-way trade reached US$190.5 million, up 106.5% on-year. Vietnam raked in US$102.9 million from exports to Uruguay, while spending US$87.6 million on imports from the Latin American nation, an increase of 76.7% and 157.2%, respectively.

Uruguay's data indicates that Vietnamese exports to this market in January hit more than US$5.7 million, up 2.4% over the same period from last year. Meanwhile, Uruguay's imports from the nation totaled more than US$1.6 million, down 48.17% on-year.

High per capita income, the development of the service industry, and frequent shopping habits of Uruguayan people are considered as favourable factors for Vietnamese exports.

Most notably, during the third meeting of the Joint Committee for Economic, Trade and Investment Cooperation of Vietnam and Uruguay held on April 14 this year, both sides agreed on a host of practical solutions aimed at solving obstacles in bilateral trade and investment relations. They also proposed trade promotion measures aimed at facilitating activities of the two countries’ businesses.

Deputy Minister Hai and Uruguayan Deputy Minister of Foreign Affairs Nicolás Albertoni consented to continuing working together to effectively implement the contents agreed upon at the meeting ahead of the 30th founding anniversary of diplomatic relations between the two countries.

Uruguay represents a potential market and one of the country’s most important partners in the region, Deputy Minister Hai said, adding that the country has an important voice in Latin America as it is one of the founding members of the Southern Common Market (Mercosur - including Brazil, Argentina, Uruguay, and Paraguay).

He therefore suggested the two sides further augment co-operation within bilateral and multilateral frameworks; as well as focusing on diversifying the structure of import and export products, promoting trade promotion activities, and supporting the business community in exploring the market and seeking business opportunities, thus further strengthening the bilateral trade.

At the meeting, the two sides also proposed new collaboration areas, including food safety, customs, science and technology, software, as well as wood exploitation and processing.

As a means of boosting exports to the Uruguayan market, the MoIT has advised Vietnamese businesses to actively seek market information and update economic-trade-investment policies of both countries through the MoIT, the Vietnamese Embassy in Argentina which is also in charge of Uruguay and Paraguay, the Embassies of Argentina and Uruguay in Vietnam, and trade promotion centres of provinces and centrally-run cities.

They should also actively participate in market survey activities, along with face-to-face and online trade-investment promotion events alongside Uruguayan partners to seek business opportunities, paying heed to improving the overall quality and competitiveness of products and developing new products.

The MoIT, relevant ministries and sectors; along with the Vietnam Trade Office in Argentina, Uruguay, and Paraguay; will provide market information and serve as a bridge connecting the Vietnamese business community with partners in these markets. This is along with helping to deal with difficulties facing Vietnamese firms attempting to make inroads into these markets.