Vietnam National Chemistry Group reaches cooperation agreement with Oceanside One Trading LLC

Prime Minister Pham Minh Chinh met with representatives of several prominent Brazilian economic corporations on the morning of November 17 in Rio de Janeiro during his attendance at the G20 Summit. 

Brazil is the fifth-largest country in the world and the largest in South America, with a population exceeding 211 million. It is Vietnam's most significant collaborator in South America due to its developed economy. Brazil is also recognized as an agricultural powerhouse, with a substantial demand for fertilizer imports and an expanding consumer products market.

The Vietnam National Chemical Group (Vinachem) is confident that it and its partners in Brazil will continue to transform potential into mutually beneficial collaboration in the coming period, particularly in light of the immense opportunities for economic and trade cooperation between Vietnam and Brazil, particularly with the interest shown by the leaders of both nations.

Vinachem, the largest domestic manufacturer of batteries and accumulators, has an annual supply capacity of over 10 million tons of fertilizer, over 7 million tires and inner tubes, and 1 million tons of chemicals and detergents. It is a key enterprise in Vietnam's industrial and chemical production sector. Its import-export turnover has experienced consistent growth, currently totaling approximately USD 700 million. Vinachem's products are distributed in 70 countries and territories globally.

Vinachem's trade turnover in the Brazilian market alone is estimated to exceed USD 90 million in 2024, which is nearly double the amount in 2021. This figure is expected to continue increasing in the years ahead.

The Vietnam National Chemical Group and Oceanside One Trading LLC signed a memorandum of understanding for economic cooperation in the presence of Prime Minister Pham Minh Chinh, based on these potentials. The bilateral relationship was thereby elevated to a strategic partnership that was founded on mutual benefit and equality.

Following the implementation of the cooperation agreement, the goal is to increase the import-export turnover with Brazil to USD 500 million annually by 2030, with an annual growth rate of two digits in multiple sectors.

The MOU outlines the primary areas of collaboration, which include the production and distribution of tires and inner tubes, fertilizers, chemicals, and related products; the expansion of business networks, market development, and research; the efficient management of transportation and supply chains; and the training and development of high-quality human resources.

Vinachem is currently conducting research on the deployment of high-tech Phosphoric Acid and standard Yellow Phosphorus products to participate in the semiconductor industry's value chain, which is in alignment with the Government's strategic objectives. This is particularly noteworthy in the field of new product development.

The Group and certain partners in Vietnam intend to import products from Brazil, including agricultural products and minerals, to serve as production inputs in order to execute their development strategy. In the near future, the Vietnam National Chemical Group is dedicated to utilizing its maximum capacity and collaborating with partners and customers in Brazil to further expand effective and practical cooperation.

Furthermore, Vinachem expects that the governments of both nations will persist in their efforts to facilitate market access and establish conducive environments for businesses to engage in productive collaborations across a variety of sectors. The Group respectfully asks the Brazilian Government to consider offering tax incentives for Vietnamese products, including rubber tires, fertilizers, and chemicals, in order to foster trade between the two countries.

On the morning of November 17, Prime Minister Pham Minh Chinh met with the leaders of three other major Brazilian corporations: Embraer (aerospace), JBS (the world's leading meat producer), and Alterosa (specializing in smart card technology), in addition to Oceanside One Trading, a leading trade corporation in the Americas.