FTA promotes Vietnam-Chile agricultural trade

According to the Agricultural Policy and Research Office of the Chilean Ministry of Agriculture, with the Free Trade Agreement (FTA) with Vietnam taking effect this year, the exchange of agricultural, forestry and livestock products between the two countries will have the opportunity to continue the growth momentum of recent years.

President Truong Tan Sang and Chilean President Sebastian Pinera Echenique after the signing ceremony of the Free Trade Agreement between the two governments in November 2011. (Photo: Nguyen Khang/VNA)

In a report, the agency said the above items accounted for 10.7% of trade turnover between the two countries.

In 2012, the exchange of agricultural, forestry and livestock products reached 60.2 million USD, of which Chile exported goods worth 48.4 million USD to Vietnam, and imported 11.8 million USD from Vietnam, up 23.8% and 34.3% respectively compared to 2011.

In the first nine months of 2013, Chile exported to Vietnam 37 million USD, up 3.2% over the same period in 2012, and imported 17.3 million USD, up 166%.

Forest products account for 62.2% of Chile's export turnover of the above product group, of which sawn timber contributes up to 59%.

Fresh grapes and wine are also prominent export products of Chile in the Vietnamese market during the above period.

Meanwhile, 96% of Chile's agricultural, forestry and livestock products imported from Vietnam are agricultural products, of which rice accounts for 61.4%. In addition, this South American country imports coffee, tapioca flour and tea...

According to the FTA between the two countries, 72% of Chilean products exported to Vietnam will immediately enjoy a 0% tax rate, and within 11 years, this rate will increase to 83%. Meanwhile, 83% of Vietnamese products currently exported to Chile will be completely exempted from tax immediately after the agreement comes into effect.

The report stated that Chile's export opportunities to Vietnam are increasing because of the increase in income of Vietnamese people and with it, consumer demand. Chile believes that the products that benefit the most from the FTA when exported to Vietnam are fresh fruit, pork and beef./.

According to Vietnam+