As geopolitical tensions reshape global trade and diplomacy, Brazil and India are taking decisive steps to deepen their ties across Asia, signaling a more assertive role within the Global South. President Lula’s recent visits to Japan (March 24-27) and Vietnam (March 27-29) highlight Brasília’s strategy of diversification. Does Lula’s East Asia tour and India’s ‘Act East’ policy converge in a shifting Indo-Pacific landscape?
RICARDO MARTINS, CURITIBA, BRAZIL
LATIN AMERICA CORRESPONDENT, NEWS ANALYTICS
a 5 mins read.
In Vietnam, Lula championed deals that boost Brazil’s flagship sectors: aviation, defence (notably Embraer), and agribusiness (led by giants like JBS). But the picture has since become more complex. Donald Trump’s renewed tariff offensive has disrupted Vietnam’s trade trajectory, forcing Hanoi to recalibrate. While this may complicate Brazilian export ambitions, it has opened new space for China to renegotiate and reinforce its influence, potentially softening its stance on the South China Sea in return for closer trade coordination.
In this changing landscape, India is also a pivotal actor. Its “Act East” policy has implications not just for Southeast Asia – creating new pathways for cooperation in the Indo-Pacific – but for partners like Brazil that share a multipolar, development-focused worldview.
JAPAN ACTION PLAN
The main purpose of President Lula da Silva’s visit to Japan was 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 213 million 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 also paid a private visit to Lula at his hotel on the President’s final day in Japan—an uncommon mark of respect.
Japan has not hosted a state visit since the COVID-19 pandemic, making this a notable diplomatic event. The last official state visit to Japan was six years ago, by then-U.S. President Donald Trump.
A key outcome of the 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, several deals between Brazilian and Japanese public and private entities were finalised during the visit. 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. Deliveries of the E190-E2S are 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 will resume imports of Brazilian beef once its sanitary mission confirms that foot-and-mouth disease has been eradicated in Brazil—a status the country has already been certified for.
Lula positioned 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.
President Lula’s visits to Japan and Vietnam signal Brazil’s pivot toward Asia, aiming to strengthen ties amid rising global uncertainties and evolving trade dynamics in the Indo-Pacific.
EXPANDING FOOTPRINT
Vietnam, now an associate member of BRICS, is positioning itself as a future full member of the bloc. 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 $7.7 billion. Both countries aim to increase this figure to $15 billion by 2030, with Brazilian beef and aircraft once again taking centre stage in negotiations.
During President Luiz Inácio Lula da Silva’s state visit to Vietnam from March 27 to 29, 2025, he met with President Luong Cuong, Prime Minister Pham Minh Chinh, and the Communist Party Secretary Tô Lâm. The Brazilian leader also paid tribute to Vietnam’s national hero, Ho Chi Minh, at his mausoleum.
On Saturday (29th), 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 $100 million in Vietnam to establish a local meat processing facility. This move strengthens Vietnam’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 Vietnam as a market economy, emphasising the countries’ similar development levels, rich cultural heritage, and shared focus on the Global South.
Aviation emerged as a key area of collaboration, with President Lula revealing that Vietnam is considering the purchase of up to 50 Embraer aircraft. Embraer has been in advanced talks with 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.
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 economic rise, also heavily targeted by Trump’s first tariff salvo, Brazil is seizing the opportunity to strengthen trade, industrial partnerships, and defence ties, further cementing its role in the fast-growing Asia-Pacific region, counter-balancing the instabilities caused by Donald Trump. A Plan of Action was established to enhance this strategic partnership.
VIETNAM SHIFTS GEARS
Vietnam, once seen as a safe haven for Western manufacturers looking to diversify away from China, now finds itself in Washington’s crosshairs. Targeted with a steep 90% tariff rate, then reduced to 10%, second only to Cambodia, Vietnam is facing a forced recalibration of its global trade strategy. This shift comes as the U.S. voices long-standing concerns over trade imbalances, transhipment practices, and intellectual property enforcement.
In response, Hanoi is moving swiftly: requesting tariff delay, pledging increased purchases of U.S. defence and commercial goods, and offering to review key issues such as monetary policy and origin rules. The stakes are high—Vietnam’s $123 billion trade surplus with the U.S. is its lifeline, and its stock index has already plunged 14% since the tariffs were announced. In this context, Brazilian aircraft deals, including possible military sales, may no longer hold.
Yet Vietnam is also repositioning itself geopolitically. As an associate BRICS member and close partner of China, India, and Brazil, it could pivot further toward South–South alliances. Brazil, however, may face fallout, as U.S. pressure threatens its growing civil and military aerospace exports to Vietnam.
As trade tensions and power rivalries reshape Asia, Brazil and India are recalibrating their strategies — deepening ties, diversifying partners, and redefining Global South leadership.
INDIA’S “ACT EAST” POLICY
India’s “Act East” policy, launched under Prime Minister Narendra Modi in 2014, has evolved into a cornerstone of New Delhi’s foreign engagement, reinforcing ties with Indo-Pacific neighbours and asserting India’s role as a regional counterweight to China. Its deepening partnerships with Mauritius, Thailand, Sri Lanka, and BIMSTEC members demonstrate a clear commitment to multilateralism, connectivity, and economic integration.
This regional engagement complements India’s global multilateral ambitions, as seen in its assertive roles within BRICS, the G20, and the Global South. Brazil, a strategic partner in these forums, shares India’s vision for a multipolar world, democratic governance, and inclusive development.
Coordinating India and Brazil’s efforts—particularly in South–South cooperation, trade reform advocacy at the WTO, and tech and climate diplomacy—could amplify their voice in reshaping global governance. With Vietnam’s growing closeness to BRICS members, including India and Brazil, there is an emerging opportunity to align regional outreach with broader multilateral goals.
In sum, in an increasingly polarised world, India’s “Act East” is no longer just a regional policy — it’s a pillar of a wider, pragmatic, and values-driven foreign policy strategy.
(Ricardo Martins. PhD in Sociology, specialising in international relations, geopolitics, and Latin American politics. He recently completed his postdoctoral fellowship at Utrecht University in the Netherlands and covers major developments in Latin America for TNJ. The views expressed are of the author and do not necessarily reflect the views of The News Analytics Journal.)
Major Highlights-
- Brazil is diversifying diplomatic and economic relations in Asia, aligning with countries like Japan, Vietnam and India amid shifting global power dynamics.
- Embraer secures major deals in both Japan and Vietnam, marking Brazil’s rising aerospace influence in Asia and creating opportunities for local partnerships.
- Brazil and India are emerging as key players in South–South cooperation, advocating multipolarity, sustainable development and inclusive global governance structures.
- U.S. tariffs pressure Vietnam to rethink its global trade strategy, inadvertently opening doors for deeper Brazilian and BRICS-aligned partnerships.
- India’s “Act East” complements Brazil’s Asia push—together, they represent a new, assertive leadership model within the Global South.
