Brazil has decided to recognize Vietnam as a market economy.

During his talks with Vietnamese President Luong Cuong in Hanoi on March 28, Brazilian President Lula da Silva informed that the Brazilian Government has decided to join the group of more than 70 countries that have recognized Vietnam as a market economy

President Lula is on a three-day State visit to Vietnam.

He emphasized that his visit aims to reaffirm Brazil’s commitment to strengthening its strategic partnership with Vietnam as part of its broader policy to enhance relations with ASEAN and the Asia-Pacific region.

President Cuong thanked the Brazilian government for recognizing Vietnam’s market economy status and its progress in economic innovation and international integration, saying the recognition helps strengthen bilateral ties and supports the goal of raising the two-way trade to $15 billion by 2030.

During the talks, the two presidents directed relevant agencies to strengthen measures facilitating bilateral trade and investment, while discussing the potential initiation of negotiations for a preferential trade agreement between Vietnam and the Southern Common Market (MERCOSUR).

Brazil consistently maintains its position as Vietnam's largest trading partner in Latin America, while Vietnam remains a leading trading partner of Brazil in ASEAN.