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The President of Brazil recently announced the recognition of Vietnam as a market economy during a meeting with the President of Vietnam.
At their meeting at the Presidential Palace today, the two leaders discussed ways to enhance the Vietnam-Brazil Strategic Partnership and exchanged views on regional and international issues. Brazil officially announced its accession to the group of over 70 countries that have recognized Vietnam’s market economy status.
Vietnam welcomed this decision, affirming that it acknowledges Vietnam’s achievements in economic reform and international integration while contributing to strengthening bilateral relations, aiming for a trade turnover of $15 billion by 2030.
Both sides highly valued the decision to upgrade bilateral ties to a Strategic Partnership in November 2024 and explored the potential launch of negotiations for a preferential trade agreement between Vietnam and Mercosur—the South American common market bloc.
Vietnam and Brazil agreed to enhance cooperation in various fields, including defense, security, science and technology, clean energy, education and training, culture, sports, and people-to-people exchanges. Additionally, both countries will actively negotiate and sign agreements to facilitate their Strategic Partnership.
Regarding international cooperation, the two leaders reaffirmed their commitment to close coordination and mutual support in international organizations, multilateral forums, and interregional platforms. They emphasized the importance of resolving international disputes through peaceful means, based on international law and the United Nations Charter.
Following the meeting, the Presidents of Vietnam and Brazil witnessed the signing of several key agreements, including the Action Plan for the Implementation of the Strategic Partnership, the Agreement on Gainful Employment for Family Members of Diplomatic Personnel, the Agreement on the Exchange and Protection of Classified Information, a Memorandum of Understanding (MoU) on Trade and Industry Cooperation between Vietnam’s Ministry of Industry and Trade and Brazil’s Ministry of Development, Industry, Trade, and Services, and an MoU on Football Cooperation between the two nations’ Football Federations.
Vietnam and Brazil established diplomatic relations in 1989, upgraded to a Comprehensive Partnership in 2007, and further elevated their ties to a Strategic Partnership in November 2024 during the G20 Summit in Rio de Janeiro. Economic and trade relations between the two countries have continued to grow significantly, with bilateral trade reaching nearly $8 billion in 2024.
Brazil is currently Vietnam’s largest trade partner in Latin America, while Vietnam is a key ASEAN partner for Brazil. Both countries have substantial potential for cooperation in agricultural exports, particularly in coffee, rice, and electronics.
Previously, before recognizing Vietnam as a market economy, Brazil could determine the normal value of Vietnamese goods by referencing the prices or production costs of a third-party market economy country rather than using actual data from Vietnamese businesses. This practice could lead to higher anti-dumping duties, as the reference prices might not accurately reflect the real costs of Vietnamese enterprises.
With the recognition of Vietnam’s market economy status, Brazil will now be required to use the actual prices or production costs of Vietnamese companies to calculate dumping margins. This change provides Vietnamese businesses with a better opportunity to safeguard their interests in trade remedy investigations.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnamese law firms specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
