If logistics and transport connections improve, Latin America-Vietnam trade is projected to grow by up to 10 per cent on a yearly basis, especially in sectors like industry, agricultural goods and energy, as the port is designed to handle 1.5 million TEUs annually, Vietnamese experts feel.

The port is expected to reduce shipping times from the country to Latin America by up to 30 per cent, or even half, which could help firms involved save up to 20 per cent in logistics costs compared to traditional routes.

Vietnam will also be better positioned to capitalise on existing trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam-Chile and Vietnam-Cuba Free Trade Agreements, with countries in the region, a Vietnamese news outlet reported.

Vietnam's import-export turnover with Latin American nations reached $20.6 billion last year. Its major exports to the region include farm produce, garments-textiles, footwear, processed foods, wood products, electronics and components. Its imports from there include raw materials, agricultural products, wood, garment accessories and animal feed.

SBS Zipper News Desk (DS)