LATIN AMERICAN MARKETS MR. TRAN DUY DONG Deputy Director General of Market Department for the Americas Ministry of Industry and Trade

Overview 33 countries Area: 22 million km2 Population: 600 million Language: Spanish, Portuguese, English, French, dialects GDP (PPP): billion USD GDP/per capita: USD Total export (2012): billion USD Total import: billion USD

GDP Growth Economic Growth of Latin American countries in 2013 (Source: Economic Commission for Latin America and the Caribbean of United Nations)

GDP Growth In 2013, the total GDP of Latin America reached billion USD, an increase of 2.6%; Income per capita was 9.425USD / person / year. Most countries in the region have achieved GDP growth rate higher than the world average (2.4%).

GDP Growth In 2014, the regional growth of 2.9% is projected by CEPAL In fact, in 2013, Latin American countries achieved GDP growth rate of 2.6%, higher than the overall growth rate of the world economy (2.4%) and lower than the 3.0 % that they have reached in The global economic crisis has adversely impacted but not too negatively on this region. In 2013, Latin America continues to maintain its ability to cope better with economic shocks from outside.

Foreign Trade Import and Export Growth by years Unit: Percentage Source: Economic Commission for Latin America and the Caribbean of United Nations

Foreign Trade In 2012, the total two-way trade turnover between the Latin American region with the world was 2,200 billion, an increase of 3.6% compared to 2011, accounting for 6.1% of global trade; Total export reached 1,122 billion, an increase of 5.8% compared with 2011; Total import increased by 6.7% and reached 1078 billion dollars.

Foreign Trade The trade surplus of this region declined from 50 billion in 2011 to 44 billion in Latin American trade has been in deficit with China and Asia. The trade surplus with the United States and the new trade partners outside the region. The trade of balance with EU is actually balanced. Export and import in 2012 of Latin America only grew 5.8% and 6.7% respectively due to the impact of the Euro zone crisis, slowing growth in the United States, Japan, China and other emerging economies.

Foreign Trade Top Products exported by Latin America (2012) Source: Economic Commission for Latin America and the Caribbean of United Nations

Foreign Trade Top Products imported by Latin America (2012) Source: Economic Commission for Latin America and the Caribbean of United Nations

Foreign Trade Source: Economic Commission for Latin America and the Caribbean of United Nations Major export markets of Latin America (2012)

Foreign Trade Major import markets of Latin America (2012) Source: Economic Commission for Latin America and the Caribbean of United Nations

Foreign Trade Latin America is a source of many important products for the world market, such as crude oil, iron ore, copper ore and transport. This area is also the largest market for machinery, equipment, consumer products and transport, etc.

Foreign Trade Khu vực các nước đang phát triển đã trở thành thị trường xuất khẩu mới cho khu vực Mỹ La tinh. Good resilience and momentum of the region thanks to restructuring. In the period from 2000 to 2012, the export to the United States market has fallen nearly 20%, from 58% to 40%, the import also decrease from 49% to 31% In contrast, exporting to China jumped from 1.1% (2000) to 10% (2012). Similarly, importing also increased from 2.3% (2000) to 14.49% (2012) Import and Export within the region increased from 16% to 19%. Developing countries have become new export markets for Latin American region.

FDI Total FDI in Latin America, 2010 – 2012 (Unit: tỷ USD)

FDI FDI of Latin America, (Unit: tỷ USD) Source: Economic Commission for Latin America and the Caribbean of United Nations

Vietnam – Latin America Trade So far, Vietnam has trade relations with all 33 countries and territories in Latin America Region. Two-way turnover in a few dozen million dollars; in reaching USD 245 million. In 2013, over USD 6.7 billion, accounting for nearly 3% of the total import and export value of Vietnam;

Vietnam – Latin America Trade Source: Vietnam Customs

Vietnam – Latin America Trade In 2013, Vietnam’s export to this region reached 3.44 billion USD; In 2013, Vietnam’s imports from Latin America reached $ 3.34 billion USD; On the whole region, the balance of trade between Vietnam and Latin America is relatively balanced.

Vietnam – Latin America Trade Source: Vietnam Customs

Vietnam – Latin America Trade Export Growth of Vietnam to Latin America from 2009 to 2013 Source: Vietnam Customs

Vietnam – Latin America Trade Source: Vietnam Customs

Vietnam – Latin America Trade Source: Vietnam Customs

Vietnam – Latin America Trade Advantage -High import capacity, large population, high demand for produced and consumed goods -Tastes of the majority of consumers still prefer imported goods, suitable to a Vietnam goods. -Latin American countries have foreign economic policy directing to Asia, including Vietnam.

Vietnam – Latin America Trade Advantage -Goods supplementary for each other. -Many free trade area (Mercosur, Can, Unasur, Aladi...). -The FTA preferential agreement Vietnam - Chile; TPP has been in negotiation. -Many of the Intergovernmental Committees.

Vietnam – Latin America Trade Disadvantage -Information -Distance, transportation cost -Trade System -Communicative language

Vietnam – Latin America Trade Disadvantage -Payment methods -The trend of protectionism is increasing in some key markets such as Mexico, Brazil and Argentina -Tough competition with some goods in Asia (China, India) and goods in the region. -No priority for trade promotion activities in the region

Vietnam – Latin America Trade Export strengthening solution -Enhancing information about Latin American markets for Vietnam enterprises. -Enhancing information about Vietnam for business persons in Latin America. -Promoting information provision supporting online export. -Organizing seminars, business meetings in Vietnam.

Vietnam – Latin America Trade Export strengthening solution -Organizing delegations participating in fairs, exhibitions, market survey to find partners and customers. -Inviting foreign delegations to work, participate in fairs and exhibitions in Vietnam. -Promoting activities of the Trade and Industry Representatives, coordinating with oversea activities.

LATIN AMERICAN MARKETS For more details, please contact: MR. TRAN DUY DONG Deputy Director General of Market Department for the Americas Ministry of Industry and Trade Tel: ; Fax: Cell: ;