The nation has great potential to bolster exports to Mexico, Peru, and Chile, three Latin American countries who have made high tariff-reduction commitments in line with the terms of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Footwear is one of Vietnam's export staples to the Latin American market

According to figures published by the Ministry of Industry and Trade’s European – American Market Department, one year after the deal has come into force, trade in goods between the nation and the three countries totaled US$5.12 billion. This includes Vietnamese exports reaching a sum of US$4.11 billion, representing a rise of 26.76% in comparison with the same period from 2018.

Vo Hong Anh, deputy head of the European-American Market Department, stated that the nation has recorded a trade surplus of US$3 billion with the three countries, with export growth of 26.3% to Mexico, 20.3% with Peru, and 36.4% to Chile.

This year has seen the country bring in US$3.74 billion from shipments to the three nations from January to October, an annual increase of 4.6%, despite the impact of the novel coronavirus (COVID-19) pandemic.

Vietnamese export staples include garment and textiles, footwear, seafood, furniture, along with telephones and parts.
Among the 11 members of the CPTPP, the trio of Latin American countries have pledged high commitments to cutting tariffs on Vietnamese products, with Chile pledging to remove up to 95% of duties on Vietnamese goods, while Peru and Mexico will reduce tariffs by 80% and 77% on Vietnamese products.

With these favourable conditions, local products have plenty of opportunities to achieve greater penetration into these potential markets.

Furthermore, Luu Van Khang, the Vietnamese commercial counsellor in Mexico, highlighted the Central American nation as a promising market for Vietnamese seafood, largely due to frozen fish and shrimp set to enjoy a 0% tariff from the third year of the CPTPP coming into effect. In addition, Mexico spends approximately US$351 million on frozen fish annually.

Vietnamese exporters should therefore pay close attention and come up with a suitable price for the Mexican market, which has large population and strong consumption, Khang suggested

In relation to Peru, Le Hong Quang, Vietnamese commercial counsellor in Brazil, suggested that firms strive to grasp the opportunities from the trade deal and boost exports to the market, where 75% of importers and exporters are small and medium-sized enterprises.

In addition to the free trade agreement signed with Chile in 2011, the CPTPP is expected to provide plentiful opportunities for Vietnamese enterprises to increase exports to the South American nation.