According to Mr. Luu Van Khang - Vietnam Commercial Counselor in Mexico (concurrently responsible for Guatemala, Honduras, El Salvador, Belize), in the first 2 months of the year, Vietnam exported more than 575 million USD to the Mexican market, down 16.9%. compared to the same period in 2022.

In particular, the decrease in computers and electronic components, which account for a large proportion of Vietnam's total export turnover to Mexico, has significantly reduced Vietnam's exports to this market. The reason is the global chip shortage and Vietnam does not have enough raw materials to supply to all markets, only focusing on supply to a few large markets such as the US. "I believe that after the electronic chip deficit is resolved, Vietnam-Mexico trade will rebound," Mr. Luu Van Khang said.

Computers and components - items account for a large proportion of Vietnam's exports to the Mexican market

Some other products are also in the group of reduced turnover such as textiles, footwear, and seafood. According to the explanation, it comes from the rule that the market develops sinusoidally; Importers fear that these product groups will also be subject to anti-dumping lawsuits like Vietnam's galvanized rolled steel and cold rolled steel in 2021 and 2022.

According to the representative of the Vietnam Trade Office in Mexico, the good news is that the tax rate applied to galvanized rolled steel products has been reduced by the Mexican government by 1.6% compared to the temporary ruling, the highest level is just over 10%.

Besides the decreasing items, there are still some items with increased, even higher, export turnover. Specifically, coffee products increase 6 times over the same period in 2022; phones and components increased by 47.4%; machinery and equipment and spare parts increased by 17.2%; Means of transport and spare parts increased by 42.9%.

Mr. Luu Van Khang also said that Mexico is a large market with about 130 million people but there is a very significant gap between rich and poor. 31% of the population is of working age, with an income of at least 200 USD/month, the group with income over 1,000 USD/month accounts for only 2%. Therefore, the Mexican market has a full range of customer segments from high-end to low-end.

In addition to the above advantages, Vietnam and Mexico are both members of the Comprehensive Progressive Agreement for Trans-Pacific Partnership (CPTPP), taking advantage of tariff incentives from this agreement is an important lever to promote promote trade between the two countries.

In the CPTPP Agreement, Mexico commits to eliminating 77% of tariff lines from January 14, 2018, equivalent to 36.5% of import turnover from Vietnam, and will eliminate tariffs on 98% of tariff lines. in the 10th year from the entry into force of the agreement. Some products that Vietnam can take advantage of tax incentives in the agreement to boost exports to Mexico include pangasius, basa fish, tuna, rice and textiles.

Minh Toan