As Việt Nam and Brazil mark 35 years of diplomatic ties this year, their collaboration across various sectors, particularly agriculture, is on the rise.

Brazil's agricultural sector is progressing, aligning with the global shift towards environmentally-friendly practices. Similarly, Việt Nam is striving for sustainable growth in its agricultural industry, a significant contributor to the nation's GDP, to meet evolving export standards, notably from markets like the EU and the US.

Việt Nam News reporter Ly Ly Cao spoke to Brazilian Ambassador to Việt Nam, Marco Farani and CEO of the National Corn Ethanol Association (UNEM) Guilherme Nolasco, to shed light on the partnership between the two countries and explore avenues to support Việt Nam’s agricultural sector.

Marco Farani: Last year, bilateral trade reached the sum of US$7.1 billion, making Brazil the largest trading partner of Việt Nam in South America. It is a phenomenal figure for two countries on almost entirely opposite sides of the world. President Lula and Prime Minister Phạm Minh Chính agreed that the bilateral trade has the potential to increase even further, achieving $10 billion by 2030. 

Our economies are in many instances complimentary, with Brazil being a well-developed agricultural economy and Việt Nam at the heart of global manufacturing. 

With this in mind, Brazil’s key exports to Việt Nam are mostly agricultural: animal fodder, cotton, soy beans, maize. Nowadays, Brazil is the lead global exporter of sugar, orange juice, beef, poultry meat and soybean.

Brazil and Việt Nam celebrate 35 years of bilateral relations this year and it is really fortunate that this anniversary coincides with the new momentum bilateral relations have gained since President Lula took office in January 2023. 

In September 2023, PM Chính visited Brazil. On that occasion, Việt Nam Ministry of Agriculture and Rural Development (MARD) and its Brazilian counterpart signed a Plan of Action for further development of our partnership in agriculture. 

Following up on the PM’s trip, the Brazilian Vice-Minister of Agriculture and Livestock visited Việt Nam and presented specific proposals for the opening of markets for certain products. 

One month later, in April, I had the honour to welcome to Hà Nội the Brazilian Chancellor, Mauro Vieira. Minister Vieira met with several Vietnamese authorities, with whom he reviewed the most important aspects of our bilateral partnership – agriculture included. 

This year, Brazil leads the G-20 Group and invited Việt Nam to participate in two technical tracks, Agriculture and Science, Technology & Innovation. PM Phạm Minh Chính is set to return to Brazil in November for the G-20 Summit at the Brazilian Government's invitation.

Marco Farani: Despite the impressive numbers I have just mentioned, trade activities between Brazil and Việt Nam still face many difficulties, mainly due to geographical distance and high logistics fees. The outcome of negotiations towards the opening of our respective markets to some key products could also help deepen cooperation. 

One of our main difficulties is that Brazil and Việt Nam still lack a bilateral agreement on technical cooperation. Such an agreement would provide an institutional umbrella under which we could develop a plethora of projects in the future. But, hopefully, this problem is going to be overcome soon. Negotiations are in their final stages and we are confident we will be able to sign the agreement very soon.

Guilherme Nolasco: Besides the formal matters, which are progressing through a partnership between the governments of Việt Nam and Brazil, we have some challenges mainly related to the distances that production needs to cover to reach the Asian consumer markets. Investment in logistics and energy infrastructure is essential to make Brazil more competitive.

A virtual meeting is planned for this coming December to begin preparing the activities outlined in the aforementioned plan.  

Further bilateral agreements are also expected, which could be signed during the visit of Brazil's President to Việt Nam in December of this year. They include the basic technical cooperation agreement, the investment facilitation agreement and the agreement to avoid double taxation.

As a country with an advanced agriculture sector and notable success in sustainable development, how can Brazil support Việt Nam in advancing towards sustainable agricultural development?

Marco Farani: I think sustainable development, as you mentioned, is really a key expression. One of the priorities of President Lula’s foreign policy is the promotion of sustainability – and I mean sustainability in all its three dimensions, environmental, social and economic. 

Research and technology (R&T) have been an important factor in our country's agricultural performance. In recent decades, Brazil has been able to increase agricultural productivity without a corresponding increase in the use of land. 

R&T is also being mobilised to recover degraded areas, making sure that no further native vegetation is destroyed in order to increase agricultural production. According to recent data, 68 per cent of the Brazilian territory is still home to native vegetation and the Brazilian Government intends to keep it that way - but without sacrificing economic growth.

Cooperation with partner countries is another aspect of Brazil's commitment to ensuring global food security and sustainability. As such, we are ready to establish a successful cooperation with Việt Nam in the area of agriculture. 

The bilateral Action Plan for Cooperation in Agriculture, signed by President Lula and PM Chính, constitutes the first foundation for our joint work. This plan contemplates five broad lines of action, two of which regard sustainability. 

I would also like to add a few considerations about green energy. Eighty eight per cent of the Brazilian energy matrix is composed of renewable sources, positioning Brazil as one of the leading countries in the global efforts towards energy transition. The employment of ethanol as a fuel source for transportation has been an important contributor to Brazil's success in the advancement of the energy transition. 

Guilherme Nolasco: One of Brazil's major challenges in pursuing sustainable development is reconciling environmental conservation with the socioeconomic needs of a developing country. 

This issue has been partially addressed through the use of technology and agricultural productivity, which allowed for the orderly use of land. Since the 1970s, the country has undergone a profound transformation in the agricultural sector, positioning itself today as a major global player in products such as corn, soybeans, sugar, cotton and others. 

By generating wealth and food without the pressure to open new agricultural frontiers, the country has kept sustainability at the core of its strategy.

Given the results we have achieved in the industry, I believe energy transition, environmental cooperation and agricultural cooperation are among the priority foundations for the partnership between the two countries. The Mercosur - Việt Nam agreement is also an important cooperation tool between the two countries. — VNS