The proposal is for the Brazilian meat processing corporation to expand its investment in Vietnam

On the afternoon of February 13, Prime Minister Pham Minh Chinh hosted a meeting with Mr. Renato Costa, the CEO of Friboi, a subsidiary of JBS S.A. Group from Brazil. The Brazilian Ambassador to Vietnam also participated in the meeting.

JBS S.A., founded in 1953, is currently the largest meat processing company in the world for both cattle and poultry. In 2023, the company generated a revenue of 74 billion USD and employs approximately 273.000 people across 24 countries. In Vietnam, JBS has been operating a 5 million USD investment in the leather industry since 2014. The company produces around 7.5 million square meters of leather annually through this project.

The relationship between Vietnam and Brazil continues to make substantial progress, especially with the upcoming elevation of their partnership to a strategic level in November 2024. Brazil remains Vietnam’s largest trade partner in Latin America, with bilateral trade reaching approximately 8 billion USD in 2024, marking a 12.2% increase compared to 2023.

Prime Minister Pham Minh Chinh emphasized his commitment to working alongside the Brazilian government to further strengthen and expand trade and investment relations, ensuring they develop in line with the potential of both countries and translating the strategic partnership into concrete results.

He pointed out that while the two nations are geographically distant, their political and diplomatic ties are closely-knit. Both economies present complementary strengths, and the people of both countries share mutual goodwill. In light of the many new developments on the global and regional stages, such as trade tensions, the Prime Minister underscored the importance of deepening cooperation, particularly in sectors that align with the interests of JBS S.A.

The Prime Minister encouraged the Brazilian Ambassador to Vietnam and the Brazilian business community to play an active role in promoting the negotiation and signing of the Vietnam-MERCOSUR Free Trade Agreement, as well as other bilateral agreements between the two countries in the areas of trade, investment, labor, visa policies and double taxation avoidance. He also urged Brazil to officially recognize Vietnam’s market economy status. Building on this, the Prime Minister emphasized the need for both sides to strengthen trade cooperation in a balanced manner, promote investment and foster greater business connections to fully utilize the complementary strengths of the two economies.

Furthermore, the Prime Minister called on JBS S.A. to expand its cooperation and investment in Vietnam, particularly in areas where the company excels, such as livestock farming, meat processing, and even exploring potential collaborations in industrial crops and coffee processing.

In addition to these areas, Vietnam expressed a strong desire to enhance cooperation with Brazil in the mining sector. Vietnam also offered to serve as a gateway for Brazilian businesses looking to enter the Southeast Asian market, as well as other markets where Vietnam has signed Free Trade Agreements (FTAs).

The Prime Minister tasked the Ministry of Planning and Investment with providing more detailed guidance and acting as the central coordinating body to continue collaborating with relevant ministries, agencies, and local authorities to support JBS S.A. Group as it explores and undertakes its business investment activities in Vietnam.

The Prime Minister also tasked the relevant authorities with reviewing and addressing the concerns and proposals from the group, including the Ministry of Agriculture and Rural Development (MARD) specifically considering the proposed cooperation in the fields of beef, cattle and poultry trade.

On the part of JBS S.A., Mr. Renato Costa explained that the purpose of this business trip was to discuss and understand the opportunities for expanding investment and cooperation with Vietnamese businesses. He highlighted that Vietnam’s rapidly growing market, which has substantial potential, offers broad investment opportunities. Furthermore, there is a great potential for leveraging Vietnam as a strategic hub to access the Southeast Asian market specifically and the wider Asian market in general.

Mr. Renato Costa expressed his strong desire for the Vietnamese government to continue facilitating favorable conditions for JBS S.A.'s business operations and investment expansion in the country. He further committed to working on fostering stronger connections between Brazilian and Vietnamese businesses, while also driving forward cooperation in key sectors as suggested by the Prime Minister.