Alvaro Jana, Director General of the International Economic Relations (DIRECON) under the Ministry of Foreign Affairs, expressed his belief on Chile’s recent Official Gazette, commenting on the Vietnam-Chile FTA that took effect as of January 2014.

DIRECON statistics show Vietnam is Chile’s second largest trade partner in Southeast Asia, and bilateral trade accounts for 20% of total trade value between Chile and ASEAN.

Two-way trade increased 26.8% annually between 2008 and 2013, reaching US$589 million last year. Chilean exports to Vietnam also rose 27.1% annually in the reviewed period.

This is the first FTA Vietnam has signed with a Latin American nation.

Jana says the agreement will create plenty of opportunity for Chilean exporters not only in Vietnam but also in Asia, and especially ASEAN.

It will help increase Chileans exports of beef, pork, dairy products and fruit to Vietnam thanks to reduced tariffs.

In turn, Vietnam will facilitate its exports such as coffee, printers, tea and cameras in the Chilean market. Among its key export items, footwear products are now enjoying a zero tax rate instead of the 6% level as previously.