COMMENT: Brazil’s Lula builds economic bridges across the Pacific

COMMENT: Brazil’s Lula builds economic bridges across the Pacific
Lula’s Asian tour built on the success of Brazil's main exports – notably aircraft and agricultural products – while demonstrating the country's ambition to play a more significant role in global economic networks. / bne IntelliNews
By Ricardo Martins in Utrecht April 1, 2025

Brazilian President Lula da Silva concluded a busy diplomatic tour across Asia last week, giving a push to the country’s strategy of active non-alignment – or rather, multi-vector – diplomacy. While China remains Brazil’s top trading partner and naturally attracts the most attention, Lula has been working to strengthen ties with other key Asian nations, including Vietnam, Singapore, and Indonesia.

His tour began with a state visit to Japan (March 24-27), followed by a trip to Vietnam (March 27-29). The primary objectives were to diversify Brazil’s markets, forge strategic alliances, and promote economic interests, particularly in the sale of aircraft and meat, as well as advancing technical cooperation.

Lula in Japan

Lula’s visit to Japan was timed to celebrate 130 years of diplomatic relations between the two nations. Brazil has a deep historical connection with Japan, having received a significant wave of Japanese migrants in the early 20th century. Today, Japanese descendants make up 1% of Brazil’s 213mn population, and a portion of them have since migrated back to Japan. Currently, around 200,000 Brazilians live in the Land of the Rising Sun. The challenges faced by Brazilian Sansei and Yonsei workers in Japan, often treated as second-class workers, were also raised in meetings with the Japanese Prime Minister and union leaders.

As part of the celebrations, Japanese Emperor Naruhito extended a rare honour to the Brazilian delegation, receiving them at the Imperial Palace for a formal meeting followed by a banquet. In a highly symbolic gesture, the Emperor even paid a private visit to Lula at his hotel on the President’s final day in Japan.

Japan has not hosted a state visit since the COVID-19 pandemic, making this a notable diplomatic event.

A key outcome of Lula’s visit was the signing of the Action Plan for the Strategic and Global Partnership until 2030, which outlines ten major agreements and 80 commitments, mostly in the form of cooperation memoranda covering climate action, industry, transportation, education, science and technology, and agriculture. Most of these agreements were signed with Japanese Prime Minister Shigeru Ishiba. It was also agreed that high-level Brazil-Japan meetings will now take place every two years.

Lula is keen to accelerate negotiations for a Mercosur-Japan free trade agreement, similar to the one established with the European Union – particularly in response to the protectionist policies under Donald Trump’s second term.

In addition, the visit saw the finalisation of several deals between Brazilian and Japanese public and private entities. One major highlight was an order placed by All Nippon Airways (ANA) for 15 Embraer E190-E2 aircraft, with options for an additional five units, totalling up to 20 aircraft.

​ANA plans to deploy these aircraft on domestic routes to bridge the capacity gap between their larger Boeing 737s, which seat about 166 passengers, and smaller De Havilland Canada Dash 8s, accommodating around 74 passengers. ​The Embraer model seats between 97 to 114 passengers, with their delivery scheduled to commence in 2028. This acquisition marks ANA as the first Japanese operator of Embraer's E2 family of aircraft.

It was also set that Japan would resume imports of Brazilian beef once its sanitary mission confirmed that foot-and-mouth disease had been eradicated in Brazil – a status the country had already been certified for.

Lula presented Brazil as a safe and attractive destination for Japanese investment and invited Japan to strengthen its partnership with Mercosur. He also co-chaired the Brazil-Japan Economic Forum, which brought together 500 business leaders from both countries.

The Japanese media widely covered Lula’s visit, with Brazil being referred to as a "Southern power" and a "representative of the Global South." In a period of geopolitical turbulence, Japan’s renewed engagement with Brazil was largely seen as a positive and strategic move.

Lula in Vietnam

Vietnam, now an associate country of BRICS, is vying to join the burgeoning bloc as a full member. As the fastest-growing economy in the world, the Southeast Asian nation is also Brazil’s fifth-largest importer of agribusiness products, with bilateral trade reaching $7.7bn in 2024. Both countries aim to increase this figure to $15bn by 2030, with Brazilian beef and aircraft once again taking centre stage in negotiations.

During the visit, Lula met with President Luong Cuong, Prime Minister Pham Minh Chinh, and the Communist Party Secretary. The Brazilian leader also paid tribute to Vietnam’s national hero, Ho Chi Minh, at his mausoleum.

On March 29, an economic forum in Hanoi brought together over 100 key business leaders, ministers, and union representatives from both nations to explore new trade and investment opportunities.

One major announcement came from a Brazilian meat processing company, JBS, which plans to invest $100mn in Vietnam to establish a local meat processing facility. This move strengthens the country’s role as a growing consumer of Brazilian agricultural products, particularly beef.

Meanwhile, Vietnam's Prime Minister Pham Minh Chinh welcomed Brazil’s formal recognition of the nation as a market economy, drawing parallels between the countries’ development levels, rich cultural heritage, and shared focus on the Global South.

Aviation emerged as a key area of collaboration, with Lula revealing that Vietnam is considering the purchase of up to 50 Embraer aircraft. The Brazilian aircraft manufacturer is in advanced talks with state carrier Vietnam Airlines over the potential sale of 10 E190-E2 jets. In addition to aircraft sales, Embraer is exploring long-term investment in Vietnam’s aviation sector, including the establishment of a training and maintenance centre.

To this end, Prime Minister Pham Minh Chinh has invited Embraer to partner with Vietnamese firms in manufacturing aviation equipment, offering technology transfer, workforce training, and technical support. To facilitate the deal, the Brazilian public development bank, BNDES, will finance part of the aircraft sales, reinforcing Brazil’s commitment to expanding its footprint in Vietnam’s aviation sector.

Beyond commercial aviation, Brazil is positioning itself as an alternative to Russia in supplying military aircraft to Vietnam. Discussions also included closer cooperation in defence intelligence, a strategic move as Vietnam seeks to diversify its partnerships.

With investments in meat processing, aviation, and defence, Brazil is expanding its presence in Vietnam, not just as a supplier but as a long-term strategic partner. The potential for Embraer to establish a regional presence, supported by BNDES financing, marks a significant step forward in bilateral cooperation.

As Vietnam continues its meteoric economic rise, Brazil is seizing the opportunity to strengthen trade, industrial partnerships, and defence ties, further cementing its role in the fast-growing Asia-Pacific region, counterbalancing the instabilities caused by US President Donald Trump. In this regard, a Brazil-Vietnam Plan of Action was established to enhance this strategic partnership.

Lula’s Asian tour built on the success of Brazil's main exports – notably aircraft and agricultural products – while demonstrating the country's ambition to play a more significant role in global economic networks.

As geopolitical tensions persist and global trade patterns shift, Brazil's diplomatic outreach is a calculated effort to carve out a more independent economic position. The success of these strategic engagements will depend on Brazil's ability to translate diplomatic goodwill into tangible economic advantages, leveraging its strengths in agriculture, manufacturing, and diplomatic soft power to navigate an increasingly complex international landscape.

Ricardo Martins is based in Utrecht, the Netherlands, and has a PhD in Sociology specialising in European politics, geopolitics and international relations.

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