Promoting Vietnam-Africa Trade Ties

 

Le Ngoc Thi – an official of South West Asia and Africa Department (Ministry of Industry and Trade) said that: Most African countries have been developing strongly. Africa and Vietnam are standing before new opportunities to boost economic development cooperation.

 

Vietnam-Africa trade turnover has achieved strong growth over the past years thanks to policies to promote trade ties between Vietnam and African countries and the dynamism of businesses in tapping new markets.

 

Vietnam has trade ties to almost all 53 African countries with key markets. The Vietnam Government has set out a national action plan to promote relations between Vietnam - Africa period 2011 - 2015 to promote comprehensive relations with African countries. There are 9 embassies and 5 representative offices of Vietnam to Africa.

 

According to the department, trade between Vietnam and Africa registers an average growth of over 30 percent a year. In 2009, Vietnam’s exports to Africa hit US$1.56 billion, an increase of 20 percent over 2008. In 2010, Vietnam’s exports to Africa hit US$1.8 billion, an increase of 15 percent over 2009 and 10 folds over 2001. The growth rate of Vietnamese exports to South Africa has been higher than imports for many years, so Vietnam maintains a trade surplus to this market.

The key Vietnam’s export markets in Africa are South Africa, Egypt, Nigeria, Algeria, Senegal, Angola, and Ghana... Key economic sectors have secured solid growth and sharpened international competitive edge like textile, footwear, agricultural equipment, electrical appliances, electronics, bicycles, motorcycles, building materials, furniture, plastics, and computer components.

 

Africa is not much of a demanding market and does not have strict requirements like other markets in the world. The sectors are in need in African nations and Vietnam can easily target to supply.

 

Rice is one of the most impressive exports in terms of growth with 30 percent of total export value in this market. In 5 years later, rice is still Vietnam’s biggest export commodity because of African’s demand. Africa nations imports US$1billion value of rice per year, especially Nigeria, Senegal, Ghana…

 

Followed are textiles and garments, mechanical and pharmaceutical products.

 

However, Vietnam’s trade exchange with Africa is still modest in comparison with other markets due to a number of difficulties such as geographical distance and communications infrastructure. In order to fill the gaps, Vietnam will be active in its promotion programmes to expand its market outlets and encouraging businesses to boost trade in the African market.

 

Vietnam’s key import commodities from Africa include wood materials, cotton, raw cashew nuts, iron and steel, raw cashew nuts, gold materials, etc. In 2009, total import value of Vietnam from Africa is US$508 million. In 2010, the value is US$767 million. The key import markets are South Africa, Tanzania, Nigeria and Ghana.