Firms advised to take advantage of CPTPP to increase exports to Mexico

Tuesday, October 12, 2021  10:14

                      Illustrative image (Photo: VNA)

 Hanoi (VNA) - Despite continuous trade surplus with Mexico, Vietnam’s market share in this market is only 1.3 percent. Therefore, businesses should take advantage of incentives from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to expand the presence of Vietnamese goods in Mexico, experts said.

According to the Department of European and American Markets under the Ministry of Industry and Trade, despite impact of the COVID-19 pandemic, import and export turnover between Vietnam and Mexico in 2020 achieved positive results.

Two-way turnover reached 3.68 billion USD last year, up 6.12 percent year-on-year. Of the total, Vietnam’s exports were valued at 3.16 billion USD, up 11.7 percent and imports 523 million USD, down 18.58 percent.

In the first eight months of this year, the trade turnover hit 3.24 billion USD, a year-on-year surge of 36.08 percent, making Mexico become Vietnam’s second largest trader in Latin America, and the fourth in America, after the US, Canada and Brazil.

Of the total, the export value of Vietnamese goods enjoyed a year-on-year jump of 43 percent to reach 2.92 percent. This is the highest growth rate among CPTPP markets.

However, according to the assessment by the Department of European and American Market, the market share of Vietnam’s exports in this market is only 1.3 percent. There is still large room for Vietnam to continue increasing the export of goods, especially when both Vietnam and Mexico are signatories of the CPTPP.

Notably, the agreement clearly states that Mexico commits to eliminate 77 percent of tariff lines from January 14, 2018, equivalent to 36.5 percent of import turnover from Vietnam, and 98 percent of tariff lines in the 10th year from the date when the agreement came into effective.

Enterprises are advised to study the Mexican market’s demand, understand more about the CPTPP to bring into full play opportunities it brings about, and step up trade promotions, especially e-commerce platforms./.

VNA