Vietnam - Chile to resolve obstacles in agricultural trade

On October 11 morning at MARD, Deputy Minister Hoang Trung received and worked with Mr. Esteban Valenzuela, Minister of Agriculture of Chile. The meeting discussed promoting bilateral trade, focusing on agriculture - forestry - fisheries and sustainable development goals (SDGs). In addition, the two ministries discuss cooperating in veterinary medicine and plant protection.

Chile is a South American country with a diverse climate. Similar to Vietnam, Chile’s agriculture is a key industry, contributing significantly to the country’s economic development. Chilean agricultural products are famous worldwide with many leading items in global export turnover such as salmon, oysters, scallops, wine, fruit, and wood products.

Leaders of the two Ministries of Agriculture command the achievements of 50 years of diplomatic relations. However, it can be clearly seen that the trade of agriculture - forestry - fisheries products are imbalanced, as Vietnam mainly has a trade deficit. In recent years, the export turnover of agricultural products between the two countries has not reached 200 million USD. This is a modest number compared to the potential of the two countries’ agricultural sectors.

Vietnam has not exported any animal products to Chile, while about 130 Chilean enterprises are exporting animal products to Vietnam. The reason is that the two countries’ policy mechanisms have many differences, so providing information from Chile takes a long time, making it challenging for Vietnam to evaluate documents. Besides, Chilean businesses mainly speak Spanish, while Vietnamese businesses often use English.

Deputy Minister Hoang Trung says: “It is known that the Memorandum of Understanding between MARD and Chile’s Ministry of Agriculture was signed in 2002, along with two government-level cooperation agreements on veterinary medicine and animal protection.

We hope that in the coming time, the two sides will update the Memorandum of Understanding so as to suit the current economic context. More importantly, we should add relevant content to promote trade exchange and increase import-export turnover between the two sides.”

Thereby, Deputy Minister Hoang Trung proposes that the two ministries continue to open commodity markets and improve the trade balance of agriculture, forestry and fisheries. Future plans need to be based on each country’s strengths and specific needs; promoting business connections; training and exchanging experiences on animal and plant protection.

Currently, Vietnam is completing documents to import Chilean agricultural products. Recently, the Chilean delegation has worked and agreed on the draft documents with the Department of Animal Health and the Department of Plant Protection. Agencies under the two countries’ Ministry of Agriculture will continue negotiations related to management and the ability to improve goods. It is expected that in March 2024, MARD’s working group will travel to Chile to evaluate techniques and product quality.

Minister Esteban Valenzuela shares from Chile's side: “Chile has recently changed its policy apparatus. Taking this opportunity, we want to promote agricultural cooperation. As Deputy Minister Hoang Trung just mentioned, it took us a lot of time to exchange technical processes. Still, Chilean meat products have delayed their exports to Vietnam for several reasons after the Covid-19 pandemic.”

Recognizing the responsibility and goodwill of MARD, Chile’s Ministry of Agriculture highly appreciates the support from Vietnam. The head of Chile’s agricultural sector pledges not to let technical and legal obstacles slow down the information exchange process. Chile’s Ministry will simplify document evaluation, creating favorable conditions for Vietnamese businesses to export meat products to Chile.

Mr. Valenzuela is also pleased to announce that at the end of this year, the President of Chile will appoint an agricultural official in Vietnam. This person will be a focal point for the two Ministries to exchange information more easily and effectively. In the coming time, the two Ministries of Agriculture will jointly review and develop content for the new Memorandum of Understanding.

Currently, the MARD is promoting the establishment of the South-South Partnership Framework in agriculture, towards sustainable development goals (SDGs), focusing on food security and nutrition and improving livelihoods for farmers in developing countries. Vietnam pledges to support experts, science and technology, and breeding information.

Regarding sustainable rural development, Minister Valenzuela recognizes the potential of the agricultural tourism model. He himself experienced this model when he came to Sa Pa (Lao Cai) and hopes to discuss more about management, policies, and mobilizing people to participate in tourism development.