HCMC – New-generation free trade agreements (FTAs) are expected to serve as a strategic lever for Vietnamese exports to enter South American markets, where domestic production capacity in many sectors has yet to meet rising consumer demand.
To help businesses better understand market opportunities and overcome barriers related to distance, business culture and logistics, the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade on May 28 organized a hybrid seminar titled “Opportunities and Challenges in Developing the South American Market.”
At the event, representatives of the agency said Vietnam’s key export sectors, including electronics, textiles and garments, footwear, furniture and agricultural products, still have substantial room for expansion in South America due to the complementary structure of the two markets.
Production capacity in many South American countries remains limited for these product groups, while consumer demand continues to grow strongly.
Trade agreements such as the Vietnam-Chile Free Trade Agreement (VCFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Chile and Peru, have already reduced most import tariffs to zero. In addition, Vietnam’s planned launch of FTA negotiations with Mercosur is expected to create further tariff advantages for Vietnamese exporters in the region.
To take full advantage of these opportunities, experts said Vietnamese businesses should shift from price competition toward improving product quality. Products should be aligned with green consumption trends, offer traceability, use environmentally friendly packaging and include Spanish-language labeling.
Given the challenges posed by long shipping distances and rising logistics costs, businesses were also advised to strengthen foreign exchange risk management and make greater use of bonded zones and regional logistics hubs, particularly in gateway markets such as Chile, to optimize transportation costs.
Trade between Vietnam and South America has maintained strong growth momentum in recent years, reaching tens of billions of U.S. dollars annually. Vietnam mainly imports raw materials from the region, including corn, soybeans, cotton and animal feed ingredients.
In Chile, two-way trade exceeded US$2 billion in 2025, up more than 40% year-on-year, with Vietnam’s exports accounting for over US$1.7 billion. However, Vietnamese goods currently make up only 2% of Chile’s total imports, suggesting significant room for further expansion.
