Vietnam explores cooperation with Pacific Alliance

Vietnam and the Pacific Alliance (AP) which groups four Latin America countries are exploring the possibility and potential to push up economic cooperation given the fact that the Trans-Pacific Partnership (TPP) trade agreement can be revived.

AP is a Latin American trade bloc with deep integration among member countries, namely Chile, Colombia, Mexico and Peru.

At the seminar “The Pacific Alliance and Vietnam in the Global Context” in Hanoi on May 22, Vu Quang Minh, secretary to Vietnam’s Minister of Foreign Affairs, said AP is a young organization which was established six years ago, but has quickly grown and impressed many countries in the world.

AP members have waived visas for each other’s citizens since November 2012, established a common fund, and gradually brought their free trade agreement into effect.

AP members have reduced tariffs on more than 12,000 products and services (92%) and are expected to remove all tariffs on goods and services by 2020, Minh added.

The alliance is becoming stronger with a population of nearly 220 million people and a per capita income of over US$6,000. It has fostered strong cooperation ties with countries in not only Latin America but also in Asia-Pacific and around the world.

Economic and especially trade cooperation between Vietnam and four AP members have grown steadily with an annual increase of 15-20%. In 2016, bilateral trade between Vietnam and AP reached more than US$7 billion, accounting for over 50% of Vietnam’s total trade with Latin America.
Vietnam and AP also have cooperation links when participating in TPP, Minh said.

At the seminar, director of Asia, Africa and Oceania of the Colombian Foreign Ministry Alfredo Ramos said TPP once revived will help boost trade between Vietnam and AP. Besides, the seminar is aimed to introduce potentials and opportunities of cooperation between Vietnamese and AP enterprises.

However, he also mentioned many barriers between the two sides in economic cooperation, especially geographical distance in the absence of effective transport routes.

Source: Saigon Times