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Argentina-Vietnam trade Soars, Driven by Agricultural Exports
BUENOS AIRES, Argentina (AP) — Trade between Argentina and Vietnam has surged in recent years, fueled by Argentina’s agricultural exports, according to recent foreign trade data. Vietnam has emerged as Argentina’s sixth most critically important commercial partner after more than five decades of bilateral relations.
Historical Ties and Strategic Partnership
Argentina was among the first Latin American nations to establish diplomatic relations with Vietnam in 1973, prior to Vietnam’s reunification in 1976. The two countries elevated their relationship to a strategic association in 2010, leading to increased bilateral visits and strengthened commercial ties.
Embassies were established in the mid-1990s,with Vietnam opening its embassy in Buenos Aires in 1995 and Argentina inaugurating its Hanoi embassy in 1996.
Explosive Growth in Trade Volume
Trade between the two nations has expanded significantly in the last two decades. Comparing 2004 figures with those of 2024, Argentine exports to Vietnam have increased more than 21-fold, while imports have risen more than 66-fold.
Over the past decade, exports have climbed 112%, and imports have increased by 295% between 2014 and 2024. Vietnam accounted for 4.1% of Argentina’s national exports in 2024, up from less than 0.4% in 2004.
Agricultural Exports Dominate
Soy and cornmeal constitute over 93% of Argentina’s exports to Vietnam, based on the 2020-2024 average. In 2024,exports rebounded by 57% following a drought in 2023,setting a new nominal record.
Vietnam is a key market for Argentine agro products. It represents 8% of the exports of the soy complex, making it Argentina’s third-largest partner behind India and China. It is also the main commercial partner for the corn complex, accounting for 19% of Argentine exports in 2024.
In 2024,Argentina shipped over 11 million tons of agricultural products to Vietnam,more than double the amount in 2023 and 36% above the average of the previous three years.
Exports to Vietnam surpassed those to China, the second most important destination for Argentine agro-industrial shipments, by 56%.
Imports from Vietnam
Approximately 70% of Argentina’s imports from Vietnam consist of machinery,devices,and electrical equipment,primarily cellphones. Footwear is the next largest category, typically representing 10% of imports based on a five-year average.
Trade Surplus and Technical Assistance
Vietnam is the source of Argentina’s third-largest bilateral commercial surplus. In 2024, the trade balance showed a surplus for argentina of nearly $2.5 billion, the highest ever recorded between the two countries.
The Foreign Ministry notes that Argentina has several technical assistance projects with vietnam, reflecting the importance of agriculture in their trade relationship.
Through the Secretariat of Livestock,Agriculture and fisheries (SAGYP),along with the Health Agency (Senasa) and the National Institute of Agricultural Technology (INTA),Argentina is engaged in four cooperation projects with Vietnam,focusing on improving rice and soy crops,technological innovation for the milk industry,and tropical fruit production.
Santa Fe Province’s Strong Ties
Vietnam ranks as the fourth-largest commercial partner of the province of Santa Fe, behind Brazil, China, and India. Exports from Santa Fe to Vietnam account for 8% of the province’s total exports, up from 4% in 2014. Over the past decade, Santa Fe’s exports to vietnam have grown by 77%.
Agricultural manufactures, particularly soy flour, make up 87% of exports from Santa Fe to Vietnam. Santa Fe is Argentina’s leading exporting province to Vietnam, accounting for 36% of the country’s total exports to that destination in 2024.
While soy flour and corn are the primary exports, there is potential to expand exports of wheat, cotton fibers, leather, cheeses, pharmaceutical products, and legumes.
Future Prospects
Vietnam’s economic growth is driving increased imports and consumption of products that Argentina can supply, such as meat and dairy. Beef consumption in Vietnam is rising, with imports accounting for a growing share of the market.
Vietnamese Prime minister Pham Minh Chinh has expressed interest in pursuing a free trade agreement between Vietnam and Mercosur. Brazil has already opened the Vietnamese market for Brazilian meat following a recent state visit.
Argentina-Vietnam Trade: A Q&A Guide to Soaring agricultural exports
This guide provides a extensive overview of the burgeoning trade relationship between Argentina and Vietnam. We’ll explore the key drivers, ancient context, and future prospects of this dynamic partnership.
What’s driving the growth in Argentina-Vietnam trade?
Argentina’s booming agricultural exports are primarily fueling the significant growth in trade with Vietnam. According to recent foreign trade data, this has led to a surge in trade between the two nations in recent years.
When did Argentina and vietnam establish diplomatic relations?
Argentina was among the first Latin American nations to establish diplomatic relations with Vietnam in 1973, predating vietnam’s reunification in 1976.
How has the relationship evolved?
The relationship between Argentina and Vietnam evolved over time:
1973: Diplomatic relations established.
1995-1996: Embassies opened (Vietnam in Buenos Aires and Argentina in Hanoi).
2010: The countries elevated their relationship to a strategic association.
This strategic partnership has led to increased bilateral visits and strengthened commercial ties, further fueling trade.
How much has trade between Argentina and Vietnam grown?
Trade has expanded dramatically in recent decades. Compared to 2004 figures:
Argentine exports to Vietnam have increased more than 21-fold.
Imports from Vietnam have risen more than 66-fold.
Over the decade between 2014 and 2024:
Exports have climbed 112%.
Imports have increased by 295%.
What percentage of Argentina’s exports go to Vietnam?
in 2024, Vietnam accounted for 4.1% of Argentina’s national exports, a significant increase from less than 0.4% in 2004.
What are Argentina’s main exports to Vietnam?
Soy and cornmeal dominate Argentina’s exports to Vietnam, constituting over 93% of the total based on the 2020-2024 average. In 2024, exports rebounded by 57% following a drought in 2023, setting a new nominal record.
Is Vietnam a major market for argentine agricultural products?
Yes, Vietnam is a key market:
It represents 8% of the exports of the soy complex, making it Argentina’s third-largest partner, behind India and China.
It’s the main commercial partner for the corn complex, accounting for 19% of Argentine exports in 2024.
How much agricultural product did Argentina ship to vietnam in 2024?
In 2024, Argentina shipped over 11 million tons of agricultural products to Vietnam, more than double the amount in 2023 and 36% above the average of the previous three years.Exports to Vietnam surpassed those to China, the second most significant destination for Argentine agro-industrial shipments, by 56%.
What does Argentina import from Vietnam?
Approximately 70% of Argentina’s imports from Vietnam consist of machinery, devices, and electrical equipment, with cellphones being a primary component. Footwear is the next largest category, typically accounting for around 10% of imports.
Does Argentina have a trade surplus with Vietnam?
Yes, Vietnam is the source of Argentina’s third-largest bilateral commercial surplus. In 2024, the trade balance showed a surplus for Argentina of nearly $2.5 billion, the highest ever recorded between the two countries.
What technical assistance projects does Argentina have with Vietnam?
Argentina has several technical assistance projects with Vietnam, primarily focused on agriculture:
Improving rice and soy crops.
Technological innovation for the milk industry.
Tropical fruit production.
These projects are facilitated through the Secretariat of Livestock, Agriculture, and Fisheries (SAGyP), along with the Health Agency (Senasa) and the National Institute of Agricultural Technology (INTA).
What is the role of the Santa Fe province in this trade relationship?
Vietnam is the fourth-largest commercial partner of the province of Santa Fe, behind Brazil, China, and India. Exports from Santa Fe to Vietnam account for 8% of the province’s total exports, up from 4% in 2014. Over the past decade, Santa Fe’s exports to Vietnam have grown by 77%.Agricultural manufactures, particularly soy flour, make up 87% of exports from Santa Fe to Vietnam. Santa Fe is Argentina’s leading exporting province to Vietnam, accounting for 36% of the country’s total exports to that destination in 2024.
What other products could Argentina export to Vietnam?
While soy flour and corn are the primary exports, there’s potential to expand exports of:
Wheat
Cotton fibers
Leather
Cheeses
Pharmaceutical products
Legumes
What are the future prospects for Argentina-Vietnam trade?
Vietnam’s continued economic growth is driving increased imports of products Argentina can supply, such as meat and dairy. Beef consumption in Vietnam is rising, and imports are growing. Vietnamese Prime Minister Pham Minh Chinh has expressed interest in pursuing a free trade agreement between Vietnam and Mercosur.
Key Takeaways: Argentina-Vietnam Trade
| Feature | Details |
|——————————-|—————————————————————————————————————————————|
| Driving Force | Argentina’s agricultural exports (soy and corn). |
| key Exports | soy products, corn. |
| Argentina’s Surplus (2024) | Nearly $2.5 billion. |
| Import Focus | Machinery, electrical equipment, cellphones, and footwear |
| Strategic Partnership | Elevated to Strategic Association in 2010.|
| future Outlook | Potential for growth in meat, dairy, and other agricultural products, possible free trade agreement with Mercosur. |