With record bilateral trade, Lula begins State visit to Vietnam

After concluding his visit to Japan, President Luiz Inácio Lula da Silva arrived in Hanoi, Vietnam’s capital, on Thursday, March 27, for the second leg of his trip to Asia. This is Lula’s second visit to the country, where he will stay until Saturday, March 29. His first visit was in 2008, when he became the first Brazilian head of state to travel to Vietnam. The trip strengthens political ties between the two nations and serves as a reciprocal gesture, following Prime Minister Pham Minh Chính’s visit to Brazil in September 2023.

In Vietnam, Lula will meet with leaders of the country’s four main political institutions: President Luong Cuong, Prime Minister Pham Minh Chính, National Assembly President Tran Thanh Man, and Communist Party Secretary General Tô Lâm.

RECORD – Seventeen years after Lula’s first visit to Vietnam, bilateral trade has grown significantly, rising from USD 534 million in 2008 to a record USD 7.7 billion in 2024, with Brazil maintaining a positive balance of USD 405 million. The shared goal is to reach USD 15 billion by 2030.

STRENGTHENING – During the visit, the Action Plan to implement the Strategic Partnership, established in November 2024, will be adopted. This plan outlines initiatives to deepen dialogue, enhance cooperation and strengthen ties between the two countries. The visit also aims to bolster Brazil’s presence in Southeast Asia and its relations with the Association of Southeast Asian Nations (ASEAN), the world’s fastest-growing economic region. Bilateral agreements on trade promotion, information security and work permit facilitation for diplomatic staff will also be signed.

FUTURE – Brazilian Ambassador to Vietnam, Marco Farani, highlighted the significance of the visit amid Vietnam’s economic expansion and the region’s forward-looking trajectory. "Southeast Asia is currently the world’s most dynamic region, with economies growing at an average rate of 4% to 5% per year. Among them, Vietnam stands out as the fastest-growing economy—expanding by 7% last year, with projections of 8% growth this year," he noted.

35 YEARS – In 2024, Brazil and Vietnam celebrated 35 years of diplomatic relations. The relationship was elevated to Strategic Partnership on November 17, 2024, during a meeting between Lula and the Vietnamese Prime Minister on the sidelines of the G20 Summit in Rio de Janeiro, where Lula was invited to visit Vietnam. Over the past two years, Lula has met with Prime Minister Pham Minh Chính three times: in May 2023, in Hiroshima, during the G7 Summit; in September 2023, in Brasilia, during an official visit, and in November 2024, in Rio de Janeiro, at the G20 Summit.

TRADE FLOW – Vietnam is now Brazil’s top source of imports from ASEAN and its 14th-largest global supplier. Brazil exports more to Vietnam than to Portugal, the United Kingdom, France or Paraguay. The country is also the fifth-largest destination for Brazilian agribusiness exports. Brazil supplies about 70% of Vietnam’s imported soybeans and is its leading pork supplier (around 37%), as well as the second-largest supplier of poultry and cotton.

DIVERSIFICATION – Brazil is working to diversify its export portfolio, which remains highly concentrated in commodities, and is seeking greater access to the Vietnamese market for beef and civil and military aircraft. The announcement of Lula’s visit has helped advance longstanding requests from Brazilian exporters. In January, Vietnam waived the requirement for an International Sanitary Certificate for leather imports from Brazil. In March, it authorized the import of chicken offal and feet. Against this backdrop, the Brazil-Vietnam Business Forum will take place, with President Lula and Prime Minister Pham Minh Chính expected to attend the closing session on Saturday, March 29.

STRATEGIC PARTNERSHIP – The Action Plan to be adopted during the visit will outline priorities for the bilateral relationship across key global issues, including defense; economy, trade, and investment; agriculture and food security; science, technology, and innovation; environment and sustainability; energy transition; social and cultural cooperation; and consular matters. The Strategic Partnership aims to deepen political dialogue, strengthen economic ties, expand trade and investment flows, enhance coordination on multilateral issues, and foster new areas of cooperation. Vietnam is also among the countries that support Brazil’s bid for a permanent seat on the UN Security Council.