Vietnam–Argentina Trade Talks Gain Momentum With Focus On Cotton And Textile Inputs

Vietnam and Argentina are accelerating efforts to deepen bilateral trade ties, with a strong focus on securing raw material supply chains for the textile industry particularly cotton as both sides push to conclude a preferential trade agreement (PTA) between Việt Nam and the MERCOSUR bloc.

The development follows a recent virtual meeting between Deputy Minister of Industry and Trade Phan Thị Thắng and Fernando Brun, Argentina’s Secretary for International Economic Relations, where both sides reviewed trade progress and outlined priorities for 2026.

Textile-linked trade flows are emerging as a key pillar in the relationship. Argentina remains a major supplier of cotton and other agricultural inputs critical to Vietnam’s textile manufacturing sector, supporting the country’s position as a global hub for garment production.

According to Vietnam’s customs data, bilateral trade reached approx. US$ 4.3 billion in 2025. Notably, imports from Argentina valued at around US$ 3.4 billion, continue to be driven by essential raw materials such as cotton, maize, soybeans and animal feed, all of which underpin Vietnam’s textile and broader industrial value chains.

For Vietnam’s textile industry, reliable access to competitively priced cotton is increasingly strategic, particularly as global supply chains undergo realignment. Strengthening trade ties with Argentina and the wider MERCOSUR region is expected to enhance supply stability and reduce sourcing risks.

Against this backdrop, both countries are working towards a more structured and predictable trade framework. Vietnam has urged faster progress on the PTA negotiations, which were formally launched in December 2025, with Argentina playing a coordinating role within MERCOSUR.

In parallel, discussions are advancing on related agreements, including a double taxation avoidance pact and expanded market access for agricultural commodities, both seen as critical enablers for smoother cotton and textile raw material flows.

To further strengthen industry linkages, Vietnam has invited Argentine businesses to participate in key sourcing platforms such as the Vietnam International Sourcing Expo 2026, aimed at enhancing direct engagement between suppliers and textile manufacturers.

Argentina, for its part, has reaffirmed Vietnam as a priority partner under its Asia-focused trade strategy and has committed to actively supporting the PTA process. The country is also exploring potential accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a move that could further reshape trade dynamics in the textile and apparel sector.