Vietnam and Brazil Move to Initiate FTA Negotiations with MERCOSUR

The Minister of Industry and Trade of Vietnam, Nguyen Hong Dien, and the Minister of Foreign Affairs of Brazil, Mauro Vieira, held a telephone conversation to advance the start of free trade agreement (FTA) negotiations between the Southeast Asian nation and the Southern Common Market (MERCOSUR).

The dialogue, which took place the previous day, aims to implement the agreements and commitments established during high-level visits and meetings between the two countries in 2025. These include the visit of Brazilian President Lula da Silva to Vietnam in March and the participation of Vietnamese Prime Minister Pham Minh Chinh in the expanded BRICS Summit in Rio de Janeiro in July.

Mauro Vieira stated that Brazil will present the proposal to begin FTA negotiations with Vietnam at the next MERCOSUR meeting, scheduled for early September 2025.

He highlighted the significant potential for cooperation between the two countries and noted that the signing of the agreement will open new opportunities for businesses, particularly in sectors where both have strengths, such as agricultural products, manufacturing, and consumer goods.

Brazil also committed to coordinating with other MERCOSUR members to accelerate this process during its pro tempore presidency in the second half of 2025.

For his part, Minister Nguyen Hong Dien appreciated Brazil's support and emphasized that the agreement will allow businesses from both countries to diversify their export markets and supply sources, in addition to strengthening their position in global value chains amid a volatile global economic climate.

He proposed organizing an initial meeting between the two parties in early September to officially declare the start of negotiations and to move swiftly toward the first round of dialogue.

Both sides agreed to convene a session to discuss in detail the roadmap and technical mechanisms necessary to promote the development of bilateral economic and trade relations.

According to data from Vietnam's Ministry of Industry and Trade, bilateral trade reached nearly eight billion dollars in 2024, an increase of 12.2 percent from the previous year.

In the first seven months of 2025, trade turnover was approximately 4.45 billion dollars, reflecting a slight decrease of 3 percent compared to the same period the year before.

Vietnam's main exports to Brazil include telephones, computers, electronics, machinery, footwear, and fisheries products, while its imports from Brazil consist of minerals, cotton, animal feed, soybeans, and wood products.

Currently, Brazil is Vietnam's second most important trading partner in the Americas, after only the United States, and its leading partner in Latin America.