With GDP totaling more than US$6 trillion and a population of more than 600 million, South America has great investment opportunities for Vietnamese companies. — Photo bnews.vn

With GDP totaling more than US$6 trillion and a population of more than 600 million, South America has great investment opportunities for Vietnamese companies.

Deputy director of the Ministry of Industry and Trade’s Trade Promotion Agency Ta Hoang Linh made the statement during a conference held on Wednesday in Ha Noi.

In recent years, Viet Nam’s exports to the region have experienced annual average growth of 30-40 per cent, Linh said.

However, Vietnamese enterprises still face several challenges in exporting to the region such as geographical distance, high transportation costs and cultural and institutional differences.

Former Vietnamese Trade Counselor to Chile Tran Dinh Van agreed. He mentioned inadequate market information and difficulties in language as two other obstacles facing Vietnamese exporters.

As for the Chilean market, Viet Nam’s goods also faced fierce competition from their peers from South American and Asia, he noted.

Le Thi Van Anh, director of Thanh Dat Joint Stock Co, which exports farm produce in the northern province of Hung Yen, said her enterprise stopped searching for export opportunities to the region as it had failed to receive payment for a cashew nut shipment in 2014 from a South American partner.

Her company couldn’t even get its products back, Van Anh told the Industry and Trade newspaper.

To facilitate Vietnamese exports to the region, Van called on closer co-operation between relevant State agencies and enterprises, especially in trade promotion.

He also suggested domestic firms improve their understanding about South American trade information, custom procedures and payment methods. — VNS