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Lula to meet Vietnamese leaders in Hanoi to boost ties

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Business delegation with Lula includes Embraer ( ERJ ), JBS

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JBS eyes meat plant if Brazil beef import approved,

sources say

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Embraer ( ERJ ) in talks to sell planes to Vietnam, sources say

By Francesco Guarascio

HANOI, March 20 (Reuters) - Brazil's President Luiz

Inacio Lula da Silva will visit Vietnam next week, bringing with

him a business delegation including executives from planemaker

Embraer ( ERJ ) and food giant JBS that are both in talks for possible

deals in the Southeast Asian country, sources said.

Lula's second visit to Vietnam as president will take place

as Vietnam, under pressure from the Trump administration to

reduce its large trade surplus, is pledging to boost imports

from the United States, including of farm products such as

soybeans of which Brazil is a top exporter to the country.

Lula will travel to Vietnam on March 27-29 after visiting

Japan, according to the Brazilian government.

Lula is expected to invite Vietnam to attend a BRICS summit

in Brazil in July, a Brazilian official said, noting Vietnam was

invited last year to become a BRICS partner but has so far not

taken an official position on the matter.

Vietnam's foreign ministry did not reply to a request for

comment. Brazil's embassy to Vietnam declined to comment.

The two countries are expected to agree on an action plan on

defence, agriculture and energy, which could boost cooperation

on ethanol, a fuel of which Brazil is a major global producer,

the Brazilian official said.

Brazil wants also to increase exports to Vietnam and is

asking Hanoi to authorise imports of its beef, the official said

confirming earlier reports on Vietnamese state media.

BUSINESS TALKS

The opening of the Vietnamese market for Brazilian beef is a

precondition for an investment that Brazil's food giant JBS

is considering in Vietnam, three people briefed about

the talks, including the Brazilian official, told Reuters.

The company is studying building a meat-processing hub in

northern Vietnam, its first plant in Asia, with a possible

investment of tens of millions of dollars, the three people

said, declining to be named because the information was not

public.

JBS declined to comment.

Separately, Embraer ( ERJ ) is also in talks for the

possible sale of ten E190 narrow-body jets to flag carrier

Vietnam Airlines, the Brazilian official said.

It is also trying to sell C-390 military transport planes,

with a possible showcase flight in Vietnam in May, the official

and an industry source said.

Embraer ( ERJ ) declined to comment. Vietnam Airlines did not reply

to a request for comment.

Hanoi is in talks with the U.S. to buy C-130 military

transport planes produced by Lockheed Martin ( LMT ).

Vietnam is one of the world's fastest-growing aviation

markets and local carriers have long been seeking to expand

their fleets.

In recent days senior executives from aviation giants Airbus

and Boeing ( BA ) met top Vietnamese officials,

according to state media and an internal agenda seen by Reuters.

Vietnam is also working on the approval of China's COMAC jets.