Brazil reduces import tax on 250 items creating opportunities for Vietnamese goods

Brazil reduces import tax on 250 items creating opportunities for Vietnamese goods

Telephones and components are among key products exported to Brazil.

Nhan Dan Online – The Brazilian Government has decided to temporarily lower import tax rates from 16 percent to 2 percent on 240 types of machinery and equipment goods and 10 types of information technology and telecommunications goods.

The import tax reduction went into force on June 24, 2014 and will last until December 31, 2015, according to Vietnam’s Commercial Affairs Division in Brazil.

Two-way trade between Vietnam and Brazil has grown strongly in the past years, putting it behind only the US in the American region. Thus, it is said that the import tax cut will create positive effects on bilateral trade. It is also considered an opportunity for Vietnamese exporters to expand their markets, reducing the dependence on specific markets.

In the first five months of this year, the two-way trade revenue between Vietnam and Brazil totaled US$1.23 billion, a year-on-year increase of 52.9 percent. Of the total, Vietnam exported US$579 million worth of goods to and imported over US$651 million from Brazil, up 42 percent and 64 percent over the same period last year.

Several Vietnamese goods exported to Brazil recorded higher earnings than during the same period last year including telephones and components (up 594 percent), aquatic products (52%), computers and electronic products (44%) and garments and textiles (55%).

The two-way trade between the two countries is expected to reach US$3 billion by the end of 2014.

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