Undersecretary of International Economic Affairs concludes visit to Indonesia and Vietnam, highlighting the region’s potential to diversify Chilean exports

Joined by a public-private delegation that included ChileCarne’s President, Undersecretary Claudia Sanhueza underscored the strategic relevance of Southeast Asia to diversify Chilean exports and of these visits to deepen business ties with the region.

Indonesia, with a population over 275 million, is the fourth most populous country in the world, making it a significant market for Chilean exports. Although pork consumption is limited, as 87% of the population is Muslim, there is potential in its Christian minority of 28 million people and a significant Chinese population, living mainly in Bali. Indonesia also receives a growing number of tourists, 16 million in 2019 and 8 million in 2023, in full recovery after the COVID-19 pandemic.

In Jakarta, Undersecretary Sanhueza signed a joint declaration to start negotiations to deepen the Comprehensive Economic Partnership Agreement (CEPA) in force since 2019. She also delivered the formal letter requesting Chile’s accession to the Regional Comprehensive Economic Association (RCEP), a relevant economic bloc.

Juan Carlos Domínguez, President of ChileCarne, highlighted Indonesia’s potential as a market for pork and poultry exports. “Although pork consumption is currently low, there is significant potential thanks to growing tourism and the modernization of food culture among younger Indonesians,” he noted.

Vietnam, with a population of 99 million people, is a large market with rapid economic growth. In 2023, per capita pork consumption reached 38 kilos, one of the highest in the world. It is the seventh largest pork producer and second in Asia, following China.

In Hanoi, Undersecretary Sanhueza met the Vice Minister of Industry and Trade, Nguyen Hoang Long, to head the fifth committee of the bilateral FTA, in force since 2014. It reviewed the current state of bilateral trade, which surpassed $1.5 billion USD in 2023. The committee agreed to prioritize the visit of Vietnamese health authorities to Chile during the second half of 2024 to inspect beef and pork processing plants, as well as kiwi fruit production, with the aim of authorizing their access to the Vietnamese market.

“Vietnam is today a relevant trading partner for Chile with bilateral trade exceeding $1.5 billion USD. As an industry, we have been requesting the opening of Vietnam’s market for Chilean pork and poultry for over 10 years. Like most Asian countries, pork and chicken are an important part of the Vietnamese diet. Our main competitors are already exporting poultry and pork to this market, so it is vital to obtain authorization in order to maintain the sector’s competitiveness. The FTA between both countries, in addition to Vietnam and Chile’s adhesion to the CPTTP should facilitate the swift opening of this key market. Undersecretary Sanhueza’s trip and the meetings with various Vietnamese officials will reinforce Chile’s request to swiftly open the market for our meats,” stated ChileCarne’s President.

Undersecretary Sanhueza underscored: “Southeast Asia is key to diversify our economic and business ties with the rest of the world and this region. We have grown significantly in Asia in the last 30 years; however, we are deeply committed to keep strengthening these ties and the region’s countries have seen a level of growth and development that are an example for us and Latin America. That’s why we came here, with a public-private delegation, to deepen and expand our links with this part of the world.”

Chile has established itself as one of the world’s largest meat exporters, ranking fifth in pork exports and twelfth in poultry, according to the USDA ranking. In 2023, Chile exported a total of $1.25 million USD in meat, of which 53% was destined to Asia. China is the primary market for Chilean pork, with 129,000 tons exported in 2023 representing 44% of the total volume exported and $223 million USD. Vietnam, with a per capita pork consumption of 37.8 kilos, is one of the main and fastest growing potential markets for Chilean exports.