AsemconnectVietnam - The wave of investment in upgrading logistics infrastructure throughout South America is a positive springboard supporting Vietnamese businesses in realizing their goal of expanding export market share to Argentina, Uruguay, Paraguay, and neighboring countries in the coming years.

Argentina's preliminary selection of a consortium to upgrade the strategic Paraná-Paraguay waterway opens up great expectations for optimizing logistics costs, thereby creating new and favorable opportunities to strongly promote the flow of Vietnamese businesses' exports into the potentially lucrative South American market.
According to information from the Vietnamese Trade Office in Argentina, the move by the Argentine government to preliminarily select the consortium of Jan De Nul (Belgium) and Servimagnus to implement the project of dredging, installing navigation aids, and managing the Paraná-Paraguay waterway is considered a key step towards comprehensively modernizing logistics infrastructure in the South American region.
A report from the Argentine Ministry of Economy clearly indicates that the Paraná-Paraguay corridor plays a crucial transportation role, handling nearly 80% of the country's total export value. Spanning over 1,500 km, this vital waterway serves not only Argentina but also acts as an irreplaceable trade gateway for Paraguay, Uruguay, Bolivia, and parts of southern Brazil.
Notably, the Argentine economic authorities affirm that the core objective of the project is to modernize the river transport system and minimize logistics costs. This is clearly a very positive sign for the entire Mercosur (South American Common Market) supply chain, both in the medium and long term.
From an international trade perspective, opening up and increasing the carrying capacity of the Paraná-Paraguay corridor will boost the efficiency of goods movement from deep within South America to the Atlantic Ocean via major seaports in Argentina and Uruguay. This trend promises to significantly improve operating times, reduce freight costs, and increase the capacity to handle import flows in the future.
For Uruguay, upgraded infrastructure enhances the strategic position of the Montevideo and Nueva Palmira seaports as international transshipment hubs in the region. These key logistics centers directly connect the flow of goods to Paraguay, Bolivia, and other inland regions of South America.
Meanwhile, for a landlocked country like Paraguay, optimizing the efficiency of the Paraná-Paraguay route is of vital importance. With reduced transportation costs and smoother flow of goods, the import of consumer goods and raw materials will receive more positive impetus for growth.
From the perspective of Vietnamese businesses, the Vietnamese Trade Office in Argentina considers this a very noteworthy development, as South America has long been a market with great potential but has been limited by relatively high logistics costs.
If the river and sea transport infrastructure network is comprehensively developed, Vietnam's key export items such as coffee, cashew nuts, pepper, processed seafood, textiles and footwear, wooden furniture, consumer goods, and electronic components will have the opportunity for strong breakthroughs.
Further analysis, the Vietnamese Trade Office in Argentina stated that Argentina is the largest market in terms of economy and population among the three countries. The continuous decline in inflation could support consumer sentiment and create a more favorable environment for importers. However, purchasing power for some non-essential goods remains cautious, as evidenced by the very low price increases in clothing and footwear. Conversely, food prices have risen higher than the general inflation rate, indicating that demand for essential goods remains relatively stable, creating opportunities for Vietnamese businesses to export agricultural products, processed foods, and essential consumer goods.
Furthermore, Uruguay's continued strengthening of its role as a regional logistics distribution hub will open up many flexible transportation solutions and optimal warehousing and transit systems for Vietnamese businesses as they penetrate deeper into Paraguay, Uruguay, and the entire Mercosur common market.
Paraguay stands out more for its macroeconomic stability than its consumer growth rate. Low inflation makes it easier for import, distribution, and retail businesses to plan their operations, manage costs, and forecast market demand. Demand for food and non-alcoholic beverages continues to grow, creating favorable conditions for Vietnamese businesses exporting food, agricultural products, and essential consumer goods.
"The wave of investment upgrading logistics infrastructure throughout South America is a positive springboard supporting Vietnamese businesses in realizing their goal of expanding export market share to Argentina, Uruguay, Paraguay, and neighboring countries in the coming years," the Vietnamese Trade Office in Argentina stated.
CK
Source: VITIC/Vneconomy.vn