Tax & Accounting Blog

Vietnam’s Exports to Mexico in Recent Years

Blog, Global Trade, ONESOURCE April 29, 2016

Background 

 Vietnam and Mexico established diplomatic relations with each other after Vietnam’s liberalization in April 1975. Both nations have signed several cooperation agreements in areas such as scientific and technological cooperation, agriculture, healthcare, culture, education and suppression of visa requirements for official and diplomatic passport holders of both countries. Currently both Vietnam and Mexico are members of the Asia-Pacific Economic Cooperation (APEC), Forum of East Asia-Latin America Cooperation, the United Nation and the most latest mega-FTA Trans-Pacific Partnership (TPP)[1].

Vietnam and Mexico Trade Relations

Mexico is Vietnam’s second largest trade partner in Latin America. Vietnam is Mexico’s 12th largest trading partner in the Asian Pacific region. Two-way trade between these countries reached nearly 2.23 billion USD in 2014, an increase of 55.7 percent year-on-year noting an annual rise of 40%. In the first quarter of 2015, bilateral trade was valued at 776 million USD, clearly a significant sign that trade between these countries remains strong.

To break this down, Vietnam’s exports to Mexico include telephone and spare parts; footwear, computer; telecom products and devices; seafood; garments and textiles; transport vehicles and spare parts; machinery and devices; coffee; sporting tools; plastic products; bags, purse, suitcase and umbrella; wooden furniture and products; rubber etc.

Vietnam’s commodity imports from Mexico were valued at 477.5 million USD (CIF price). Major commodities imported also include some of the same items such as computers, telecom products and components; machinery and spare parts; and then food for livestock and materials; iron and steel of all kinds, iron and steel waste materials.

Officials in both countries attribute the increasing trade to the recently signed Trans-Pacific Partnership (TPP) agreement, to which Vietnam and Mexico are two active members.  Another contributing factor is the inauguration of a representative office of the Mexican import-export association (ANIERM) [2] in Vietnam.

In fact, both countries are banking on the TPP to push forward Vietnam and Mexico trade ties.   It is believed the TPP will provide great opportunities for the two countries’ exports. However, Vietnamese exporters have voiced concern they will face increasing challenges from Mexico in several products such as textiles, footwear, meat and fruit; industries to be watched and protected.

Vietnam appears to be an attractive investment destination, because of the abundance of low-cost manufacturing, young labor force and growing middle class. With the TPP agreement, Vietnam is banking on an influx of international investment and strengthened ties with all of the LATAM region.

To learn more about TPP, visit our Trans-Pacific Partnership Agreement page.

 ONESOURCE Global Trade

 

Sources:

http://www.customs.gov.vn

http://en.vietnamplus.vn

http://www.vietnamembassy-eum.gov.vn

[1] https://en.wikipedia.org/wiki/Mexico%E2%80%93Vietnam_relations

[2] Founded in 1944, ANIERM is a non-profit organization working to facilitate foreign trade, logistics and other services.