In addition to financial factors, long geographical distances and rising logistics costs continue to pose major obstacles to exports to the South American market.

As Vietnamese businesses seek new room for growth beyond traditional markets, South America is showing greater openness to trade cooperation with Viet Nam. Supported by free trade agreements (FTAs), many of Viet Nam’s key export products have additional room to expand their market share in the region.

However, trade turnover between Viet Nam and South American countries has grown more slowly than expected in recent years. Frequently changing foreign exchange policies and import management mechanisms in some countries in the region have created challenges for exporters in managing payment risks, controlling exchange-rate fluctuations and developing contingency plans for international transactions.

Ngo Manh Khoi, Head of the Viet Nam Trade Office in Argentina, said the depreciation of local currencies has become one of the biggest pressures on import markets in South America. The weakening of local currencies has fuelled imported inflation, making foreign goods, including Vietnamese products, more expensive for local consumers.

Long geographical distances and rising logistics costs are also placing significant pressure on export activities. Shipping routes have been adjusted due to instability in the Middle East, extending transit times by up to 18 days compared with previous periods. This has increased costs and directly affected exporters’ profit margins.

Businesses should make use of bonded zones and transshipment logistics centres to optimise long-distance transportation costs. Apart from  cost-related challenges, changing consumer preferences are also reshaping market requirements across South America, Khoi emphasized.

According to Ngo Thu Huong, Trade Counsellor at the Viet Nam Trade Office in Chile,  Chilean consumers are placing increasing importance on product quality, modern design, convenience and sustainability. Criteria such as environmentally friendly packaging, organic certification and traceability are becoming common requirements for imported goods.

In the textile and footwear sectors, Chilean consumers are increasingly favouring products that are simple, comfortable and suitable for everyday use. Huong said this is an appropriate time for Vietnamese businesses to gradually shift from competing on price to competing on quality, design and green attributes.

Despite short-term challenges, South America is still regarded as a region with substantial potential for Vietnamese products.

Guillermo Pérez Cena, President of the Argentine Chamber of Commerce in Viet Nam, stated that markets in South America highly value the potential of Vietnamese products, particularly coffee. Businesses in the region have said there is still ample room for cooperation between Viet Nam, Chile and Argentina, especially as companies seek new markets, diversify supply sources and expand trade links beyond traditional markets.

Khoi said demand in Argentina for electronics, textiles and garments, footwear, coffee and technology components is still present. At the same time, Argentina’s domestic production capacity has not met consumer and industrial demand, creating room for imported goods.

However, to make effective use of opportunities in South America, Vietnamese businesses need to adjust their market strategies to make them more flexible.

Khoi said that rather than relying too heavily on consumer goods that are sensitive to economic fluctuations, businesses should increase the proportion of products serving manufacturing, industrial activities and essential local demand.

Viet Nam and the Southern Common Market (Mercosur) have officially launched negotiations on a free trade agreement (FTA). The move is considered a strategically significant step for the business community. Once tariff lines are reduced, Viet Nam’s key export products, including textiles and garments, footwear, wooden products, furniture and coffee, will enjoy a greater competitive advantage than competitors that do not have FTAs in the South American market.

Source: VOV

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