Argentinian Ambassador sees bright economic picture for 2022

Argentinian Ambassador to Vietnam Luis Pablo María Beltramino

The year 2021 is nearing its end, having witnessed major changes induced by Covid-19 in global economic and social life. Could you share your views on the global economic picture as well as trade cooperation between Vietnam and Argentina in 2021?

I think we all experienced unprecedented vicissitudes caused by the pandemic in 2020 and 2021. The world economy has suffered the fiercest impacts of the pandemic. Global trade and supply chains have been disrupted continuously. However, we have seen the world economy’s positive changes since late 2021, given the global gross domestic product (GDP) index, as well as other aspects.

Thanks to the interaction between the Argentinian and Vietnamese economies, trade between the two countries grew steadily in 2020 and 2021 despite Covid-19 outbreaks. Vietnam’s exports to Argentina grew impressively in the past two years, especially electronic equipment, mobile phones and other electronic accessories.

Now as the year 2021 is nearing its end, I would like to say that luckily, Argentina and Vietnam have gone through this difficult and challenging period and have ceaselessly strengthened mutual trust to maintain positive growth of bilateral trade and achieve sustainable development in the future.

The global economy is forecast to face new difficulties due to new variants of the coronavirus that are leading many countries to reconsider their plans for reopening. Could you share your forecasts about Vietnam-Argentina trade in 2022?

New variants of the coronavirus have raised concerns for the global economy. However, we believe the situation will improve thanks to pandemic prevention efforts. Accelerating vaccinations worldwide is the most important measure to prevent the spread of the pandemic. In the current context, solidarity is also necessary for nations to overcome the pandemic.

Once the pandemic is effectively controlled, the world economy will surely recover quickly. New inter-governmental cooperation mechanisms will be established to promote trade and investment to achieve mutual development and global consumption growth.

Since countries around the world, including Vietnam, are preparing for safe adaptation to the pandemic and reopening their economy, I am optimistic about economic and trade cooperation between Vietnam and Argentina in 2022. The global economy is recovering, so I believe bilateral trade will also recover and grow as expected. In fact, in 2020 and 2021, annual bilateral trade already exceeded US$4 billion.

The Argentinian Ambassador (middle) and Vietnamese businesses at the ceremony introducing an Argentinian beverage brand in Vietnam

Vietnam is integrating into the global economy with aspirations for greater presence of its goods in world markets. How can Vietnamese goods penetrate the Argentinian market, in your opinion?

Vietnam is one of Argentina’s major trading partners and our key South-South Cooperation partner with 15 projects already developed in various fields. As you see, despite a bilateral trade imbalance, Vietnam’s exports to Argentina in 2020 and 2021 grew at higher rates compared with Argentina’s exports to Vietnam.

Despite pandemic impacts, we have seen the Vietnamese government’s timely measures to prevent manufacturing and supply chain disruptions. Vietnam has joined 17 free trade agreements – this will facilitate Vietnamese goods’ access to major markets, including Argentina.

As a member of the Southern Common Market known as MERCOSUR, Argentina is in the process of negotiating its integration into different economic blocs and nations. Vietnam is on the list of countries with which Argentina will negotiate integration at a higher level in the future. I think this will create new opportunities to increase the presence of Vietnamese goods in the Argentinian market.

Vietnam has many high-quality products. Vietnamese textiles, garments, leather and footwear products have become familiar to consumers in South American markets. However, to boost exports to Argentina, Vietnamese businesses should carefully study demand and consumer trend in the Argentinian market. Notably, they should identify the specific market segment for each product.

The global economic situation is expected to improve in 2022

In the context of shifts in investment trends, Vietnam has emerged as a potential destination. Does Vietnam attract Argentinian investors?

As you may know, the Argentinian economy leans towards trade rather than investment. We have been an investment receiving nation and currently focus our attention on international trade. Although Argentinian investment in Vietnam remains limited, we hope that it will increase in the future along with the tightening of bilateral economic cooperation, and in fact, we are striving to achieve this.

Argentina has potential industries with major achievements in the fields of energy and healthcare. We have successful businesses in the satellite service sector. Argentina is also a world-leading nation in the field of agricultural technology. Argentinian investors will surely be interested in Vietnam as a destination for their business expansion strategies.

The Vietnamese government and the Vietnamese Embassy in Buenos Aires, Argentina can identify suitable fields for Argentinian businesses to invest in Vietnam. For its part, Vietnam has a strong telecommunications technology sector and can promote investment in Argentina in this field.