Together we strive to bring Vietnam - Latin America relations to new heights

In the coming time, economic relations between Vietnam and Latin America will certainly continue to flourish and be raised to a new level…



Minister of Foreign Affairs Pham Binh Minh

From July 5-6, 2012, the Vietnam - Latin America Forum on Trade and Investment was hosted by the Ministry of Foreign Affairs in Hanoi, with the participation of nearly 20 countries in the Latin American region (including Central America, South America and the Caribbean). For the first time in the history of Vietnam - Latin America relations, a large-scale forum was held to exploit the potential for economic, trade and investment cooperation, bringing the relationship between Vietnam and countries in the Latin American region to a new level, commensurate with the good traditional political relationship that has existed up to now.

Latin America: A region rich in potential and dynamic development

Latin American countries have many similarities and are connected to each other in terms of historical traditions, culture, race, religion, language (most speak Spanish, Portuguese and English)..., creating great advantages for exchange, cooperation and integration between countries within the bloc as well as between the region and the world.

Although accounting for only more than 8% of the world's population (577.2 million people) and 14.7% of the world's area (21.5 million km2), Latin America has diverse natural and mineral resources, accounting for a large proportion of the world's total reserves such as: silver (31%), copper (28%), coal (27%), forest area (25%), oil (24%), nickel (24%), bauxite (17%), tin (16%), iron (14%), uranium (5%) ...

Many Latin American countries, with three leading economies, Brazil, Mexico and Argentina, members of the G20 Group, have achieved quite high levels in many fields such as oil and gas exploitation and processing, energy (hydroelectricity, wind power, etc.), mineral exploitation, high technology, biofuel technology and technology, agriculture, agricultural, forestry and seafood processing, etc.

In recent years, the Latin American economy has made a breakthrough, developing strongly in all aspects, along with Asia, being considered as bright spots in the growth of the world economy. Latin American countries have chosen the right economic development path, achieving impressive and admirable achievements. The GDP of the whole region achieved an average growth rate of 5.3% per year in the period 2006-2010 compared to 2.4% in the period 2000-2005, especially the growth rate of some countries such as Argentina reached 9% (2010), Colombia 5% (2010) and Chile 5.3% (2010).

In 2011 alone, in the context of the global economic and financial crisis, the Latin American economy still achieved a fairly high GDP growth rate of 4.3%, total GDP value reached over 6,006 billion USD, GDP per capita reached 9,308 USD; export turnover was over 1,000 billion, FDI attraction reached a record 130 billion USD, an increase of 73% compared to 2010.

Along with the development of the whole region, some large economies in Latin America such as Argentina, Chile, Brazil, Mexico, Uruguay... have had a strong rise, in which Brazil became the 6th largest economy and Mexico became the 13th largest economy in the world with total GDP value in 2011 of 2,294 billion USD and 1,661 billion USD respectively. The World Bank forecasts that in the next 5-10 years, the Latin American economy will maintain a GDP growth rate of 4-6% per year, inflation and unemployment will be maintained at single digits.

In parallel with the development process in each country, Latin America is increasingly interested in promoting regional and international connectivity and integration. In recent years, a series of sub-regional and regional political-economic integration organizations have been strengthened or newly established such as the Union of South American Nations (UNASUR), the Community of Andean Nations (CAN), the South American Common Market (MERCOSUR), the Central American and Caribbean Common Market (CARICOM), the Bolivarian Alliance for Latin America (ALBA)….

This trend has turned Latin America into a large and increasingly homogeneous market, facilitating access and business and investment activities for partners outside the region.

In order to serve development goals, most Latin American countries have made important adjustments in foreign policy in general and foreign economic policy in particular. From focusing on Western Hemisphere partners, Latin American countries have proactively expanded relations with partners outside the region, especially strongly oriented towards Asia-Pacific.

In that direction, many Latin American countries are increasingly actively participating in inter-regional integration organizations such as the Asia-Pacific Economic Cooperation Forum (APEC), the East Asia-Latin America Forum (FEALAC), the Trans-Pacific Partnership Agreement (TPP), and are interested in establishing relations with ASEAN. This is an important premise for developing relations between Vietnam and Latin American countries in a more cohesive and effective direction.

Vietnam-Latin America: From traditional friends to comprehensive partners

Vietnam and Latin American countries have a long-standing friendship and solidarity, which originates from the similarities in the history of the struggle for national liberation. José Marti, a Cuban and Latin American revolutionary and cultural figure, mentioned the heroic tradition of the Vietnamese people in fighting against invaders in his short story “A Walk in the Land of the Annamese” published in his work “Golden Age”, published in the US in 1889. He was considered by Cuban leader Fidel Castro as “the first Cuban and Latin American to discover Vietnam”.

In his search for a way to save the country, President Ho Chi Minh also visited Martinique Island in the Caribbean, Uruguay and Argentina in 1912 and later sowed the seeds of solidarity, friendship and cooperation between Vietnam and Latin American countries. The ideology of independence and freedom is the spiritual bond that has united the Vietnamese and Latin American people from the generations of José Marti, Ho Chi Minh to the present day.

The Vietnamese people will always remember and be grateful to the Latin American people for their vigorous anti-war movements, expressing their staunch support for the Vietnamese people's struggle for national liberation and reunification for independence and freedom, contributing to the formation of a front of the world's people supporting Vietnam.

The visit and meeting with President Ho Chi Minh by Chilean Senate President Salvador Allende in 1969, and President Fidel Castro's visit to the liberated area of ​​Quang Tri in 1973 will forever be symbols of that solidarity and precious support. Right in the midst of the struggle for national liberation, Vietnam established diplomatic relations with Cuba (1960), Chile (1971) and Argentina (1973).

After Vietnam's historic victory in 1975, political and diplomatic relations between Vietnam and Latin American countries were expanded. In the five years (1975-1980), Vietnam established diplomatic relations with 10 Latin American countries. Vietnam also stood side by side with Latin American friends in the struggle for independence, democracy and social progress. Latin American countries strongly supported Vietnam's accession to the United Nations in 1977, assisted Vietnam in overcoming the consequences of war, expanded foreign relations, and opposed blockade and embargo measures.

Since Vietnam initiated the renovation process in 1986, relations with Latin American countries have entered a new phase of development, stronger and more comprehensive. Since 1986, Vietnam has established diplomatic relations with 14 countries in this region. The exchange of visits and contacts between high-ranking leaders of Vietnam and Latin American countries has been carried out regularly, thereby establishing a comprehensive partnership framework between Vietnam and a number of countries.

Dozens of cooperation agreements and treaties have been signed, creating favorable mechanisms and legal corridors for the development of multifaceted cooperation between Vietnam and Latin American countries. Coordination and mutual support at international organizations and multilateral forums are increasingly close. Exchanges and interactions between groups and people-to-people friendship organizations are constantly developing.

By 2012, Vietnam had established diplomatic relations with 27 Latin American countries, established intergovernmental joint cooperation committees with 5 countries, and established political consultation mechanisms with 15 Latin American countries. Over the past 10 years, there have been 9 visits by Vietnam's highest-ranking leaders to Latin American countries, and 10 visits by Latin American leaders to Vietnam. Vietnam currently has 7 embassies in the region; 8 Latin American countries have opened embassies in Hanoi.

The good and constantly developing political and friendship relations have created a solid premise and foundation for the expansion and strengthening of multifaceted cooperation between Vietnam and Latin American countries, especially in the fields of trade and investment. Two-way trade turnover has continuously increased, by approximately 30% per year, from 300 million USD in 2000 to 5.1 billion USD in 2011, a 17-fold increase. Particularly with the three largest economies in the region, Brazil, Mexico and Argentina, two-way trade turnover has exceeded 1 billion USD with each country. The total committed investment capital of Vietnam to regional countries has also reached about 7 billion USD, concentrated in the fields of energy and telecommunications.

Despite rapid and impressive development, the economic-trade-investment relations between Vietnam and Latin America are still modest, not commensurate with the good political relations and potential of the parties. Vietnam's bilateral trade turnover with Latin American countries accounts for only a small proportion of the total trade turnover of each country. Vietnam's trade and investment relations with the region are mainly focused on a few partners. Latin American countries' investment in Vietnam is still small compared to the potential of investors.

Information, propaganda, promotion and introduction activities about the business environment, potentials and economic opportunities between Vietnam and Latin American markets are still limited and not very effective. Enterprises on both sides still lack understanding and proper attention to finding partners and accessing each other's markets.

Taking Vietnam-Latin America relations to a new level

The recent developments in relations between Vietnam and the Latin American region, especially economic and trade relations, are just the beginning. There are many grounds to believe in the bright prospects of future cooperation between Vietnam and Latin America.

Firstly, Vietnam and Latin American countries have a foundation of solidarity, good traditional friendship and strong political determination to develop the relationship more and more substantially, serving the development of each country. The Vietnamese Government always attaches importance to and wishes to strengthen relations with Latin American friends, considering the countries in the region as potential cooperative partners in the development and modernization process. For their part, Latin American countries also increasingly attach importance to developing relations with the Asian region, including Vietnam, and are ready to cooperate with Vietnam for mutual development.

Second, the two sides still have much untapped potential for economic cooperation, and there is still a large space for developing business and investment relations. Latin American countries can develop cooperation and investment projects in Vietnam in their areas of strength such as oil and gas exploitation and processing, developing traditional and renewable energy sources (thermal power, hydropower, nuclear power, wind power, biofuels, etc.), infrastructure construction, pharmaceuticals, agricultural and food processing, etc.

For their part, Vietnamese enterprises can further promote their strengths in rice production, aquaculture, production of household electronics, agricultural machinery, telecommunications services, shipbuilding, automobile and motorbike manufacturing and assembly, etc. in the Latin American market. Vietnam and Latin American countries have many opportunities to develop partnerships in agriculture, energy, transportation, logistics, telecommunications and services, etc., based on the strengths of resources, labor, technology and strategic position of each economy in the current trend of regional and global economic integration.

Third, the international economic and political environment in the coming time will continue to create favorable conditions for the development of relations between Vietnam and Latin American countries. East Asia and Latin America continue to maintain peace and stability, with economic growth rates higher than the general growth rate of the world economy.

The economic and political integration trends in the two regions will continue to develop, creating conditions for external partners to access the two large regional markets. The trend of inter-regional cooperation through established mechanisms such as APEC, FEALAC, TPP, ASEAN-MERCOSUR... will create more opportunities to connect countries on both sides of the Pacific basin.

In that context, the organization of the Vietnam - Latin America Forum on Trade and Investment in Vietnam will create opportunities for Vietnamese and Latin American partners to meet, make direct contact, enhance understanding, and exchange measures to strengthen trade and investment relations, thereby forming specific cooperation mechanisms and agreements.

This is a proactive step by the Vietnamese Government, demonstrating its respect and determination to continue developing the relationship between Vietnam and friendly countries in Latin America.

It can be affirmed that in the coming time, with the desire and determination from both sides, with the dynamism and rapid economic development of Vietnam and Latin American countries as at present, with many untapped potentials, the economic relations between Vietnam and Latin American countries will certainly continue to flourish and be raised to a new level, commensurate with the existing good political relations, serving the interests of the people of each country, for peace, stability, cooperation and development in the two regions and in the world./.

Pham Binh Minh
Member of the Party Central Committee, Minister of Foreign Affairs

According to (Vov.vn)-LT