Vietnam is in the process of promoting negotiations on a Free Trade Agreement (FTA) with the Southern Common Market (Mercosur) bloc, to turn this FTA into a driving force to exploit the export market in the Latin American region.
The Common Market of the South (Mercosur) is a sub-regional bloc established in 1991 by Argentina, Brazil, Paraguay and Uruguay. Mercosur is a dynamic, competitive and growing economic and industrial region, with growing influence as the 5th largest economic bloc in the world. With an important geographical position in East Asia and the Asia-Pacific region, Vietnam is an important gateway for MERCOSUR countries to enter the ASEAN market.
As a member of the Mercosur bloc, Brazil is currently Vietnam's largest trading partner in the bloc and in Southeast Asia.
According to statistics from Vietnam Customs, in the first half of June 2024, Vietnam's pangasius exports to Brazil reached 4 million USD, up 5% over the same period last year. Cumulative pangasius exports up to the first half of June 2024 reached 50 million USD, up 47% over the same period in 2023. January 2024 was recorded as the month with the highest export turnover, with nearly 14 million USD, up 83% over the same period. Only in February 2024 did the export value of pangasius to this market decrease by 6%, reaching nearly 6 million USD.
Since the beginning of this year, Brazil has almost only imported frozen pangasius products and frozen pangasius fillets from Vietnam under HS code 03046200. The largest pangasius supplier to this market in the first 5 months of this year was Hung Ca 2, accounting for 19% of the value.
In addition, Vietnam's pangasius exports to some other markets in the bloc are still considered to have potential. By the end of May 2024, pangasius exports to Argentina reached nearly 1.5 million USD, an increase of 238%; to Uruguay reached more than 700 thousand USD, a slight increase of 2% over the same period. Meanwhile, Paraguay is still quite limited in importing pangasius from Vietnam. This country is a major exporter of agricultural products, livestock and electricity in the world. Currently, Vinh Hoan is the only Vietnamese enterprise exporting to this market in the first 5 months of this year.