Record exports to Vietnam a key market for Argentina

Argentina was one of the first Latin American countries to establish diplomatic relations with Vietnam in 1973, before its reunification after the war ended in 1976. Since then, bilateral ties have grown steadily for more than five decades.

After this, embassies as such were opened only in the mid-1990s: in 1995, Vietnam opened its embassy in Buenos Aires, and in 1996, Argentina opened its embassy in Hanoi.

Since 2010, relations have reached the level of strategic partnership, which has led to an increase in bilateral visits, strengthening trade, an expansion of the number of signed agreements and other aspects.

With the thriving relationship between the countries, trade volume between Argentina and Vietnam has increased significantly over the past two decades. Exports have increased more than 21 times and imports more than 66 times compared to 2004 levels.

Moreover, over the past decade, exports have increased by 112%, while imports have grown by 295% between 2014 and 2024. Vietnam has increased its share of national exports from less than 0.4% in 2004 to 2.3% in 2014 and 4.1% in 2024.

According to the average data for 2020-2024, more than 93% of Argentina's exports to this important region of Southeast Asia are made up of soybean meal and corn. Although the EXPORT basket to Vietnam is oriented towards Argentine agricultural products, in 2024 exports recovered by 57% after the drought in 2023.

Thus, exports to the Southeast Asian country not only overcame the drought, but also set a new nominal record. According to the 2024 foreign trade data, after more than half a century of bilateral relations, Vietnam has become the country's sixth-largest trading partner.

In terms of importance for the agricultural complex, Vietnam accounted for 8% of soybean complex exports, making it the third largest trading partner after India and CHINA . At the same time, it was the main trading partner for the corn complex, which accounted for 19% of Argentina's shipments in 2024.

Looking only at the main agricultural products - soybeans, corn, wheat, sunflower, barley and sorghum - Vietnam is Argentina's main buyer. As also highlighted in this weekly report, more than 11 million tons of agricultural products were shipped to Vietnam in 2024, more than double the 2023 figure and 36% higher than the average over the past three years.

Not content with this, exports to Vietnam increased by 56% compared to China, the second most important destination for Argentine agricultural products.

Import

In terms of imports, nearly 70% of imports from Vietnam to Argentina are machinery, household appliances and electrical equipment (mainly mobile phones and mobile phone parts).

Following this category is footwear, which typically accounts for 10% of imports, based on data averaged over the past five years.

In addition, Vietnam provides Argentina with the third largest bilateral trade surplus. After Chile and India, Argentina posted a bilateral trade surplus of nearly US $2.5 billion in 2024 , the highest ever in Argentina-Vietnam trade history.

As the MFA notes, and given the importance of agriculture in the export basket, Vietnam is one of the countries with which Argentina has the largest number of technical assistance projects.

Argentina, through the Secretariat of Livestock, Agriculture and Fisheries (SAGyP), the HEALTH agency (SENASA) and the National Institute of Agricultural Technology (INTA), is working on four cooperation projects with Vietnam: rice and soybean crop improvement , technological innovation for the dairy industry and tropical fruit cultivation.

Vietnam and Santa Fe: A Growing Relationship with Great Potential

Vietnam is the fourth largest trading partner of Santa Fe Province after Brazil, China and India. In this sense, Vietnam is the destination for 8% of Santa Fe Province exports, which is 4% more than in 2014.

In this sense, Santa Fe's exports to Vietnam have grown by 77% over the past decade.

Agriculture is a key component of trade between Santa Fe and Vietnam: 87% of the province's exports to this destination are agricultural products , primarily soybean meal. Santa Fe is also the main Argentine province exporting its products to Vietnam.

36% of Argentina's exports to this destination in 2024 went to Santa Fe.

While soybean meal and corn figure prominently in the export basket in this destination, wheat, cotton fiber, leather, cheese, pharmaceuticals, legumes and other products are also exported, offering enormous opportunities for Argentina in general and Santa Fe in particular to expand their presence in this strategic market.

Future Prospects

Vietnam's economic growth is stimulating imports and consumption of a wide range of products that Argentina produces and can expand its exports, such as MEAT and dairy products. Beef is one example of a product whose consumption in Vietnam is growing year on year, not only in volume but also in the share of imports in total consumption.

Vietnamese Prime Minister Pham Minh Trinh said this year that he would push for a free trade agreement between Vietnam and Mercosur. He has already received strong support from Brazil, which successfully opened the Vietnamese market to Brazilian beef during the Brazilian president's last state visit a month ago.