Vietnam-Africa Business Forum: A Launch Pad for Enterprises to the African Market

Vietnam-Africa Business Forum: A Launch Pad for Enterprises to the African Market

The Vietnam Chamber of Commerce and Industry (VCCI) has been assigned by the government to set up the Vietnam-Africa Business Forum within the framework of the 'National Programme of Action on Promoting Vietnam-Africa Cooperation in the 2003-2010 Period.' ViB Forum interviewed Hoang Van Dzung, the Permanent Vice President of VCCI, about the forum.

Why should the Vietnam-Africa Business Forum be set up?

Africa is the third largest continent covering an area of 31 million square kilometres with a population of about 800 million people in 54 countries. Despite being less developed than other continents, Africa is a market of great potential with materials, purchasing power and many great development opportunities. The continent has become a place of competition for major economies. Many African countries have benefited from preferential policies in trade ties with the US and the EU. Via cooperation with Africa, Vietnam's enterprises can further enter these markets. Furthermore, Africa has a great purchasing power, though the market is less hard-to-please compared with the EU, the US and Japan in terms of quality and the sample of products. 

It is possible to say that Africa is an ideal market, suitable with Vietnam enterprises' production capacity, especially for the major products of Vietnam, including seafood, agro-produce, processed food, textiles and garments, handicrafts and home appliances. Furthermore, Vietnam has good political ties with most African countries and many are willing to provide preferential policies for Vietnam. Vietnam also has had many cadres and workers working in African countries for a long time. They therefore have experience in African land, people and markets. However, useful information about African countries is currently limited as Vietnam has yet to develop a network of commercial services in Africa. At the same time, Vietnam's enterprises have yet to fully understand the business potential and opportunities of the African market. Due to the demand for economic development, exemplified by the 'Vietnam-Africa: cooperation and development opportunities during the 21st century' seminar in May 2003, show that the two sides wish to further promote bilateral cooperation in many fields. With its functions and role in boosting Vietnamese businesses, VCCI has been assigned by the government to set up the Vietnam-Africa Business Forum under the government's directive on assigning responsibilities to ministries and agencies to carry out the 'National Programme of Action on Promoting Vietnam-Africa Cooperation in the 2003-2010 Period.'

What is the objective of the Forum?

The objective of the national programme and the forum is to promote and develop trade and investment with Africa with a particular focus on South Africa, Egypt, Algeria, Morocco, Angola, Tanzania and Senegal. The forum will help concretise objectives of attaining a trade turnover of US$1 billion with an export turnover of US$700 million in 2010 through the national programme. The forum also aims at implementing plans of the Vietnam-ASEAN, South Asia and Africa Commission under the VCCI executive board.

Can you provide some detailed information about the forum's activities?

The forum will carry out Vietnam-Africa economic and trade promotion activities, including cooperation between VCCI and embassies in Vietnam and chambers of commerce and industry of African countries, with which VCCI had signed cooperation agreements. Vietnam has finalised signing procedures with Johannesburg (in South Africa), Madagascar, Mozambique, Benin and Algeria so as to facilitate the organisation of meetings for enterprises focusing on cooperation, investment, potential partners and opportunities in African markets. Market exploration trips in major countries, such as South Africa, Algeria, Morocco, Angola, Tanzania and Senegal will also be organised for leaders of business associations. The forum will include training courses to provide information about legal and customs procedures, financial mechanisms and trademark protection, and other necessary regulations for enterprises exporting their goods to Africa. At the same time, exhibitions and fairs will be held in Vietnam and Africa, and websites on the African market will be developed. The Vietnam Business Forum newspaper will also open columns on Vietnam-Africa cooperation. Ideas of enterprises on difficulties in developing trade deals with African countries will be gathered to help find solutions.    

How will VCCI carry out the plans?

We have planned to organise the forum into two phases. The first phase will be carried out from April to December, 2004 with preparations for the establishment of the forum. The phase consists of the submission of a project on the establishment to the Governmental Office and the Ministry of Foreign Affairs, the submission of a project on financial support for the forum's activities and the gathering of ideas from ministries and agencies, as well as embassies and representative offices of African countries in Vietnam about the forum's activities. At the same time, a list of enterprises and business associations interested in the African market will be created. The second phase will be implemented from 2005 to 2006 with the above mentioned contents.

• Reported by Ngoc Minh