Boost from the CPTPP Agreement

Currently, Peru, Chile, and Vietnam are members of the CPTPP. Statistics from the Ministry of Industry and Trade show that five years after the agreement took effect in January 2019, the CPTPP has played a crucial role in driving Vietnam's trade with American markets, particularly with member countries like Canada, Mexico, Chile, and Peru. Notably, Canada, Mexico, and Peru established their first FTAs with Vietnam through this agreement.

According to Vietnam Customs, total trade with CPTPP markets in the Americas rose by 56.3%, from 8.7 billion USD in 2018 to 13.6 billion USD in 2023. Despite global challenges such as economic downturns and the Covid-19 pandemic, exports to these markets nearly doubled, increasing from 6.3 billion USD in 2018 to 11.7 billion USD in 2023. Vietnam's trade surplus with these markets also nearly tripled, rising from 3.9 billion USD to 11.01 billion USD, providing a strong boost to Vietnam’s macroeconomic stability. This growth has significantly contributed to Vietnam's trade with the broader Americas region, which reached a total trade value of 137.7 billion USD in 2023, with exports totaling 114.5 billion USD. Trade with partners like Canada, Mexico, Chile, and Peru has seen notable growth.

Previously, Vietnam had an FTA with Chile, but it was a smaller-scale, traditional agreement. The CPTPP granted Vietnam unprecedented access to two South American markets, Peru and Chile, as well as North American markets like Canada and Mexico, creating significant opportunities to enter high-potential markets.

According to the European-American Markets Department of the Ministry of Industry and Trade, three years into the CPTPP, Vietnam's exports to CPTPP markets in the Americas have shown substantial growth, particularly in countries like Canada, Mexico, and Chile. These results underscore the CPTPP's positive impact on Vietnam's exports, both directly and indirectly.

Vietnam's main exports to these markets include electronics and components, machinery, textiles, and footwear.

Growing Trade Between Vietnam and Peru, Chile

Specifically regarding Chile, 2024 marks the 55th anniversary of diplomatic relations between Vietnam and Chile. Over the past 55 years, relations between the two countries have flourished, especially in trade. Bilateral trade volume has quadrupled over the past decade, reaching 1.5 billion USD in 2023.

Chile is one of Vietnam's key partners in the region and was the first Latin American country to sign an FTA with Vietnam (in 2014). This year’s milestone visit is expected to inject new momentum into Vietnam-Chile relations, particularly in high-potential areas of collaboration.

In the first nine months of 2024, bilateral trade between Vietnam and Chile reached 1.24 billion USD, with Vietnam's exports to Chile amounting to 983 million USD, a 5.4% increase from the previous year.

Regarding Peru, it is currently Vietnam's largest direct investor in Latin America and the sixth-largest trade partner for Vietnam in the region, while Vietnam is Peru’s top ASEAN trading partner. Bilateral trade reached nearly 500 million USD in 2023.

In the first nine months of 2024, bilateral trade amounted to approximately 400 million USD, with Vietnam's exports to Peru totaling 344 million USD, a slight 1.6% decrease from the same period last year.

While trade between Vietnam and Peru and Chile has grown, significant potential for expansion remains. Both countries participate in numerous FTAs, which Vietnam can leverage to boost exports to other American nations through Peru and Chile.

According to the European-American Markets Department of the Ministry of Industry and Trade, by leveraging Chile and Peru as gateways, Vietnam can also promote exports to other South American countries, given Chile's FTA with the MERCOSUR bloc. Consequently, the CPTPP acts as a “launchpad,” enabling Vietnamese goods to capitalize on opportunities in Chile and Peru while expanding into the broader MERCOSUR market, even before Vietnam establishes an FTA with this region.