Brazil reduces taxes on 100 imported goods from October 1

The import tax reduction measure is a good opportunity for Vietnamese goods to penetrate the Brazilian market.

The Brazilian government has just announced a reduction in import taxes for 100 items from October 1, 2013 to the original tax rates applied before September 2012.

In September 2012, in order to protect domestic production and limit the impact of the global economic recession, Brazil decided to increase import tax rates on 100 industrial and manufactured goods from the end of September 2012, bringing the majority of import tax rates in the past year to 25%.

The decision not to extend the application of the above import tax increase measure is based on a number of current conditions to stimulate manufacturing industries that need to import raw materials, contributing to fighting inflation, reducing production input costs, and on the other hand, the depreciation of the Brazilian Real currency compared to the USD also contributes to limiting imports.

Some key manufacturing sectors that benefit well from the import tax reduction policy include metallurgy, chemicals, pharmaceuticals, machinery, equipment, means of transport, tires, construction materials, etc.

The import tax reduction measure is a good opportunity for Vietnamese goods to penetrate the Brazilian market. The Brazilian market is large, has a lot of potential, a large population, and there is still much room for Vietnamese goods to penetrate. Consumer purchasing power and import demand, and preferences for imported goods are constantly increasing. Due to high input production costs and the weak competitiveness of Brazilian industry in consumer goods, imports are further stimulated.

On the other hand, the prices of imported goods from some Asian countries have increased due to increased input costs, and more and more Brazilian businesses are looking for Vietnamese goods with more competitive prices. Brazil is the original market and the world's leading supplier of raw materials such as: Oil and gas, iron ore, cotton, textile fibers, tobacco materials, footwear, sugar, alcohol, coffee, soybeans, meat, corn, and fruits.

Over the past 10 years, the scale of bilateral trade between Vietnam and Brazil has increased faster than that of most countries in the Asian region. According to the General Department of Vietnam Customs, in the first 6 months of the year, the value of two-way trade between Vietnam and Brazil reached 1,030.2 million USD, an increase of 31.2% over the same period (1.03 billion/ 0.78 billion USD). Of which, export turnover reached 499.4 million USD, an increase of 57.6% over the same period, higher than the average export growth rate of Asian countries to Brazil (9%). With efforts to promote trade, it is estimated that the trade turnover between the two countries will reach 2 billion USD in 2013, of which Vietnam's export value is about 1 billion USD./.

According to VOV - LY