Chairman of VCCI Pham Tan Cong had a meeting with Chilean Ambassador to Vietnam, Mr. Sergio Narea (Photo: Truong Dang)

During the meeting, Mr. Narea informed VCCI's Chairman about the upcoming visit to Vietnam by Ms. Claudia Sanhueza, Deputy Minister of Foreign Affairs in charge of Foreign Trade of Chile. According to him, Vietnam is one of Chile's important markets in the region, and he expects that the visit by the leaders of Chile's Ministry of Foreign Affairs will significantly enhance the trade relationship between the two countries.

Chairman Pham Tan Cong expressed his pleasure at the news of the upcoming high-level delegation from Chile, stating that Vietnam is ready to play a larger role in bringing Chilean goods into the market, as well as serving as a gateway for Chile to penetrate the dynamic ASEAN market.

Mr. Cong also praised Chile's role as a founding and active member of the Forum for the Progress of South America (Prosur) and as a member of the Asia-Pacific Economic Cooperation (APEC). While Vietnam is a key and active member of ASEAN, this will serve as a bridge to promote inter-regional cooperation.

According to VCCI's Chairman, the two countries also have great potential for cooperation in the field of green hydro and renewable energy such as wind and solar power. (Renewable energy in Chile accounts for 40% of the total electricity production and 13% of the world's green hydro produced from the southern part of the country).

Both sides have discussed the prospects of current and future trade cooperation.

He also thanked the Ambassador for participating in VCCI's promotional events such as the Spring Meeting in Quang Ninh in March 2024.

This year, Peru is the host country of APEC, and VCCI plans to organize a business delegation to participate in events during APEC High-Level Week in Peru. There is a possibility that the delegation will also visit and work in Chile. We hope to receive the support of the Ambassador in connecting VCCI with Chile's trade promotion organizations such as SOFOFA to facilitate the delegation in understanding the Chilean market and meeting Chilean businesses.

Regarding the delegation of Chile's Deputy Minister of Foreign Affairs to Vietnam, VCCI is ready to coordinate with the Embassy to organize business events if the program allows.

The bilateral Free Trade Agreement in 2011 and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018 have brought about great potential for development for Vietnam and Chile. Chile is currently Vietnam's fourth largest trading partner in Latin America. The trade structure between the two countries can complement each other well. Vietnamese businesses can also diversify their sources of production materials with Chile's export partners in wood, copper, and lithium. Vietnam can enhance its exports of seafood, consumer goods such as textiles, footwear, agricultural products, and food to Chile.

Both sides hope that Chile and Vietnam will have more high-level visits between leaders to further enhance trade relations.

Over the past 53 years of diplomatic relations (1971-2024), the friendly relations and cooperation between Vietnam and Chile have continuously been strengthened and developed in all areas. From then until now, the two countries have achieved many important milestones such as establishing a comprehensive partnership in 2007, signing a bilateral free trade agreement in 2011, and together joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018. Both sides maintain quite regular exchanges of visits.

Vietnam-Chile trade relations are steadily developing. Chile is Vietnam's fourth largest trading partner in the Latin American region. In 2023, bilateral trade turnover reached USD 1.57 billion, down 27.2% compared to 2022. Vietnam's exports amounted to USD 1.19 billion (down 30.7% compared to 2022) and imports were USD 375 million (down 13.2% compared to 2022).

Vietnam mainly exports consumer goods such as phones and components, computers, electronic products, machinery, textiles, garments, footwear, and seafood, among others. Imports mainly consist of seafood, wood and wood products, metals, iron and steel scrap, among others.

Regarding FDI, as of the end of 2023, Chile had 4 projects with a total registered capital of USD 300,000, ranking 116th out of 144 countries and territories investing directly in Vietnam.