Recently, in Hanoi, Dr Vu Tien Loc, President of Vietnam Chamber of Commerce and Industry (VCCI), had a working meeting with Ms Sara Valdés Bolaño, Ambassador of Mexico to Vietnam. The two sides agreed to facilitate the businesses of both countries to promote understanding and investment in each country and bring trade to far exceed the current US$2 billion level.
Speaking at the meeting Dr Vu Tien Loc affirmed that Vietnam always attached importance to cooperation with Mexico, hoping that the two sides will promote exchanges and strengthen cooperation between the two countries and the two regions ASEAN and Latin America, especially in the context that, by the end of 2015, the ASEAN Community will be established with more than 600 million people. The signing of TPP will open up great opportunities for both sides to further promote cooperation in trade and investment. Vietnam can expand penetration and increase exports to market in Mexico towards investment in production in Mexico, for both consumption in the domestic market and export to North America and Central - South America.
According to Mexican statistics, total two-way import-export turnover in 2014 reached US$2.26 billion, up 40 percent compared to 2013 and in the first 3 months of 2015, this figure was at US$776 million. Vietnam's export to Mexico has high growth and stability. Among the export items, seafood, textiles and footwear machinery and equipment rose to the top position, accounting for a large share of exports of Vietnam. In addition to the above items, in the coming time, Vietnam is fully capable of exporting to Mexico items such as furniture, crafts, jewellery, plastic products and stationery. However, most of the export products of Vietnam in this market such as footwear, textiles are made by the joint ventures (Nike, Reebok, Puma) or are exported via third countries.
Highlighting the potential for cooperation in the field of agriculture, Dr Loc affirmed that being one of the world’s biggest coffee producers and exporters, Vietnam and Mexico could collaborate and exchange experiences in planting and processing coffee, because the two sides have many similarities in social and economic development in this sector without major competition, as Mexico mainly produces Arabica and Vietnam is famous for Robusta coffee.
Mexican Ambassador to Vietnam Ms Sara Valdés Bolaño said that Vietnam and Mexico have many similarities, are members of APEC and TPP, so the two countries can share experiences and cooperate in the future, not just politically and economically, but also in the fields of education and training, science, and others. Mexican enterprises are interested in investment in export processing zones and free trade zones in Vietnam to produce goods that Vietnam has strength and can use local raw materials for export to third countries such as clothing, footwear, food processing, electronic components, etc. Ms Sara Valdés Bolaño hoped that both parties will come to negotiate Vietnam-Mexico Joint Committee on Economic, Trade and Investment Cooperation. The Mexican Ambassador to Vietnam hoped that through VCCI, they can connect more with Vietnamese enterprises.
Regarding incentives for Vietnamese enterprises, Ms Sara Valdés Bolaño said that in the past few years, Mexico has given goods imported from Vietnam most-favoured-nation (MFN) status. It is also one of the reasons for promoting export of Vietnam in this market. In the agricultural sector, Mexico has provided Vietnam some high-yielding crop varieties (maize, vegetables, pineapple), cattle (beef and dairy beef); training of agricultural technicians to Vietnam (corn planting techniques, artificial insemination, livestock pasture). Ms Sara Valdés Bolaño also pledged to support boosting economic and trade relations with Vietnam in general and the economic – trade promotion activities, and the major holidays of Vietnam and 40 years of diplomatic relations in 2015 between Mexico and Vietnam.
Agreeing with this point, Mr Cesar Fragozo, Representative of Trade and Investment Promotion Agency Mexico (ProMexico) asserted that seeking new markets is always a significant issue and Mexico focuses on penetration of emerging economies in the world, including Vietnam. He hoped that through this activity, Mexican businesses will find innovative ways to market themselves in Vietnam. Representative of ProMexico also encouraged Vietnam businesses to come to Mexico to grab the opportunity to learn about Mexican industry for the best longterm orientation and right investment.
To promote collaboration and have more efficient exploitation of the potential strengths of each country, as well as to promote the export of goods from Vietnam to Mexico, Ambassador Sara Valdés Bolaño said that the two sides should step up build and perfect the mechanism of bilateral cooperation, especially the establishment of the intergovernmental Committee, sign the Agreement on encouragement and protection of investment, agreement on avoidance of double taxation, provide a legal framework for promoting multi-faceted cooperation between the two sides; enhance the supply and exchange of information on policies, environment and business opportunities and promote business connections. Besides, representative agencies of both Mexico and Vietnam will further promote their bridging role and provide information on each others' strengths, production capacity and exports; culture, business practices and consumer markets.