Vietnam - South Africa Promoting Trade, Investment and Tourism

Speaking at the seminar, VCCI Da Nang Deputy Director Nguyen Dien said Vietnam established diplomatic relations with South Africa on December 22, 1993 and had close relationships with the African National Congress (ANC) and the South African Communist Party (SACP). Since then, the bilateral ties have been strengthened and deepened by visits by leaders at all levels. The signing and enforcement of “Bilateral Trade Agreement, Cooperation and Development Partnership Joint Statement", “Agreement on Establishment of Intergovernmental Partnership Forum for Economic, Commercial, Cultural, Scientific and Technological Cooperation,” “Vietnam - South Africa Joint Statement", “Cooperation Agreement between the Chambers of Commerce" together with incentive policies, investment protection and double-tax avoidance has facilitated the two countries in promoting trade, tourism and investment.

 

On trade cooperation, South Africa is the gateway to enter Southern African countries and is one of the largest trade partners of Vietnam in Africa. The two-way trade turnover between Vietnam and South Africa climbed from the initial US$30 million to US$300 million in 2008. The bilateral trade revenue is expected to top US$700 million this year. Vietnam mainly exports mobile phones, rice, footwear, apparel, machinery, accessories, furniture and household goods to South Africa. The two countries also had many cooperation programmes in tourism, culture, education, science and technology.

 

However, investment and trade ties between companies of Vietnam in general, the central region in particular, and South Africa are not very active because of geographical distance and insufficient market information, he said. South Africa does not have any investment projects in central Vietnam and companies in central Vietnam have not made any investment in South Africa. To date, only 37 companies in central Vietnam are exporting some 10 product lines like seafood, apparels, footwear, rattan - bamboo items, woodwork, agricultural products, tyres, toys, incense sticks, and plastic folding doors to South Africa. The export value is also low, just over US$13 million.

 

First Secretary of the South African Embassy in Vietnam, Adriaan du Pisanie, said South Africa is a new diverse market, has rich natural resources, stable economy and politics, a favourable investment environment with reasonable policies, preferential business and regulatory environment, and easy market entry. These are good conditions for Vietnamese enterprises to promote investment cooperation. “Aquaculture, wooden furniture and accessories, and stainless steel utensils are fields where Vietnam should invest in South Africa," he noted. The South African Embassy in Vietnam will be an important bridge for Vietnamese businesses to understand more about the country, economy, business opportunities, policies, and preferential services in South Africa. Hence, the two countries can tap the potentials and advantages of each other to promote economic and trade relations.

 

In tourism cooperation, South Africa is one of most attractive tourist destinations on earth - the mystifying combination of the beauty of nature, wildlife, culture and history always gives visitors a unique and extremely enjoyable experience. South Africa is also very rich in natural resources, potentially competitive industries, multiform agriculture development, and advanced science and technology. All these factors make South Africa a locomotive of the 14 countries of the Southern African Development Community (SADC). In the past years, the two countries have stepped up tourism cooperation. South Africa has the largest number of tourists visiting Vietnam of any African country.

 

An official of Da Nang City said the central coastal city always desires to expand cooperation ties with South Africa, particularly in trade, investment and tourism, and always creates the most favourable conditions for cooperation expansion between Da Nang and South African agencies and businesses.

 

This was the third time VCCI Da Nang hosted seminars on the South African market for companies in central provinces. The seminar was a very meaningful activity to celebrate the 20th anniversary of Vietnam - South Africa diplomatic relations (December 22, 1993 - 2013) and helped strengthen Vietnam - South Africa ties in general and Da Nang - South Africa ties in particular.