A Bird's-Eye View to Chilean-Vietnamese Bilateral Trade, and the Way Forward Mr. Jaime Rivera Trade Commissioner & Coordinator of ASEAN Markets of PROCHILE
Basic Data Vietnam Chile Official Name Socialist Republic of Viet Nam Republic of Chile Surface 329,560km 2 756,096km 2 Population 86,928,000 17,819,054 Capital Hanoi Santiago Religion Buddhist/Taoist/Confucianism (85%), Catholic (9%) Roman Catholic (66.6%), Protestant (17%) Official Language Vietnamese Spanish Government Communist State Republic National Day September 2 September 18 Chief of State Presidentof the Republic Truong Tang Sang President of therepublic Michelle Bachelet 2
Chile and Vietnam: Highlights 2003-2010 Vietnam reopened embassy in Santiago, Chile, in December Chile reopened embassy and consulate in Hanoi, Vietnam, in October In November 2006, ProChile opened a commercial office in HCMC 2003 2004 2005 2006 Chilean President Ricardo Lagos, made historical visit to Hanoi 10 Chilean parlamentarians traveled to Hanoi to tighten bonds and increase cooperation Michelle Bachelet, President of Chile, visited Hanoi in the context of the APEC meeting. The negotiation process for the Chile- Vietnam FTA is agreed.
ProChile Vietnam: Highlights 2007-2012 A delegation of eight Chilean parliamentarians visited Hanoi and HCMC, in response to the invitation extended by the President of the National Assembly CFR-RecalcineLab invested a total of USD 80 million, in the acquisition of Domesco laboratory near HCMC Vice President of National Assembly, Uong Chu Luu, visited National Congress with eleven Vietnamese parliamentarians 2007 2008 2009 2010 2011 2012 Deputy Isabel Allende visited Hanoi to commemorate the centenary of Chile s former President, Salvador Allende lndecember 2011, a Chilean delegation from The Ministry of Finance visited Vietnam to gather information related to mining policies, the legal system, the mining royalty, etc. Delegation from the Vietnamese Ministry of Education visited Chile to learn more about the Program of Guarantees for Education, from March 31 to April 10 Negotiations start for the Vietnam-Chile FTA
ProChile Vietnam: Highlights 2012-2016 Technical assistance between Chile and Vietnam: Quinoa cultivation program in Ha Giang Parliamentary delegation from Finances and Budget Commission of National Assembly of Vietnam visited Chile for technical visits with Chilean parliamentarians, authorities from the Treasury Ministry and the National Customs Agency 2012 2013 2014 2015 2016 Sebastian Pinera, President of the Republic of Chile, visited Hanoi on March 21 25 with a delegation of businesspeople, to attend seminars and to do technical visits Chilean business delegation of the National Agricultural Society and Agricultural and Livestock Service visited HCMC Kick-off of the Vietnam -Chile FTA 1 st meeting of the FTA s commission
Vietnam and Chile, Bilateral Relations A closerlook intothelastyears Chile activelysupportedtheentranceof Vietnam to theapec and OMCand recognizedvietnam as a marketeconomy. Fuente ProChile y Ministerio de Comercio Tailandes. 6
The last four Presidents of Chile have made State Visits to Vietnam
How to develop bilateral trade?
CHILE IN ASEAN: Commercial Objetives The capitalization of the FTA s of Chile with Malaysia, Vietnam and Thailand, is one of the main objectives in the ASEAN region. In these particular markets, we expect to grow at rates over 20% in goods that exclude copper, while in the other countries of the ASEAN block, our goal is to grow at a pace over 10% a year.
CHILE IN ASEAN: Strategy ASEAN looks to Chile: Consolidation of Chilean products in the market, increase of the exports of services in key sectors, capitalization of Free Trade Agreements, y the promotion of Chile as a focus for entrepreneurship, innovation and tourism 1 Products 2 Services 3 FTA s 4 Innovation
Free Trade Agreement with Vietnam Opportunities of Commercial Sub platforms FTA AFTA, Tariffsof 0% to 5% 11
Main products exported to Vietnam Salmon and Trout, US$M 40,000 35,000 34,615 +23% 36,903 30,000 29,900 25,000 20,000 15,000 13,379 10,000 5,000 0 2010 2011 2012 2013 Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos).
Mainproductsexportedto Vietnam Manufacture of Spare Parts for Construction and Carpentry, US$M 40,000 35,000 +24% 34,918 30,000 28,071 25,000 21,465 20,000 15,000 15,670 10,000 5,000 0 2010 2011 2012 2013 Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos).
Mainproductsexportedto Vietnam King Crab, US$M 10,000 9,000 8,000 +53% 9,097 7,000 6,000 5,963 5,000 4,000 3,404 3,000 2,000 1,000 0 0 2010 2011 2012 2013 Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile (Balanza de pagos).
Mainproductsexportedto Vietnam Chilean Seabass, US$M 6,000 5,000 +36% 5,308 4,000 3,715 3,899 3,000 2,000 1,000 0 0 2010 2011 2012 2013 Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile
Mainproductsexportedto Vietnam Fresh Grape, US$M 6,000 5,000 +20% 4,288 5,140 4,000 3,000 3,191 3,564 2,000 1,000 0 2010 2011 2012 2013 Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile
Mainproductsexportedto Vietnam Pharmaceutical products, US$M 3,000 2,500 2,415 +58% 2,000 1,500 1,423 1,524 1,000 798 500 0 2010 2011 2012 2013 Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile
Mainproductsexportedto Vietnam Dried Fruits, US$M 1,800 1,600 1,560 1,400 +2635% 1,200 1,000 800 600 400 200 0 0 0 2010 2011 2012 2013 57 Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile
In November 2006, Chile opened the commercial office in HCMC. Fuente: Inteligencia Comercial ProChile, con cifras del Banco Central de Chile
VIETNAM Highlights, 2007-2010 Wine Tasting Event 27Vineyards 250 Participants Flavoursof Chile Wine Tasting Event 29 Vineyards Seafood products Tasting 100 Participants International Food & Hotel Fair Sea Products Olive Oil FreshFruits Wines 2007 2008 2009 2010 Business Conference Chile- Vietnam 25 Businessmen SponsorshipBanco de Chile &SOFOFA Wine Tasting Event 37 Vineyards 300participantes ASOEX Prochile Mission 25 businessmen Business Conference Chile- Vietnam 25 businessmen Chilean Wine Tasting 26Vineyards
VIETNAM Highlights, 2011-2014 CWT 22Vineyards 250People Invited 200 Participants Launch of Chilean Mussel In hotel Rex, in Ho Chi Minh City 50 Participants SNA Mission Business Conference Seminars 2011 2012 2013 VietFish Fair Chilean presence in important fair dedicated to seafood and sea products. Launch of Chilean Pisco Chilean/Taiwanes e Somellier invited 60 Participants CWT 24Vineyards 250 Invited People Launch of Fresh Fruit and Chilean Cherry In large supermarket chain Tasting of Chilean Food Products In hotel Nikko Saigon.
VIETNAM Highlights, 2013-2016 Chilean Wine Tasting Hanoi 18 vineyards 200 participants PhytoSanitary Agreement to send fresh chilean fruitto the Vietnamese Market ProChile Coordination Meeting CWT 2013 2014 2015 2016 International Vietnam Shop & Franchising Fair Entry into Forceof FTA Vietnam- Chile FTA Workshop
VIETNAM Invitations to Chile, 2009-2014 2009 2010 2011 2012 2013 2014 Universityof Fine Artsof HCMC Truong Phi Duc: Vicedean Nguyen Dung An Hoa: Professor Fresh Fruit Importers Truong Than Liem TraThiNgocHan Retail Businessman Nguyen Anh Hong Forest Businessman Le Viet Trung Forest Businessmen Phan Trung Hung Phan Dinh Thu To Ngoc Ngoi Fresh Fruit Importers Sunny Ma Wayne Cao Forest Businessman Phan Hoang Chuong Le Viet Trung Forest Businessman Luu Phuoc Loc
VIETNAM The Way Forward Challenges Work on overcoming non-tariff barriers such a misunderstanding procedures, lack of information, wrong interpretation of the legal framework Improve the banking linkeagebetween both countries to avoid overcharge, to have more recognized banking institutions, etc. Create strategic partnerships in service areas such as agriculture, aquiculture, mining and IT Create warehouses and distribution centers to expand business areas and coverage not only to Vietnam, but to Laos and Cambodia also
A Bird's-Eye View to Chilean-Vietnamese Bilateral Trade, and the Way Forward Cảmơnbạn!