Vietnam, South Africa Accelerating Trade and Investment Promotion

Remarkable programmes included the Vietnam - South Africa Trade and Investment Promotion Seminar held at New World Hotel, Ho Chi Minh City, on March 27, 2014 and the Vietnam - South Africa Business Exchange organised at Animus Lounge, 19 Phung Khac Khoan, District 1, Ho Chi Minh City, on March 28, 2014.

The two countries established diplomatic relations in 1993, just before South Africa held its first democratic elections in April 1994. In the past two decades, the friendly bilateral relations have constantly developed in all aspects and achieved new progress not only in politics and economy.

 

South Africa is the biggest export market of Vietnam in Africa. In 2013, its exports to South Africa reached nearly US$765 million, up 25 percent over 2012. Meanwhile, South Africa is the second largest supplier out of 55 African countries with trade relations with Vietnam. It spent nearly US$155 million on imports from this market, up 40 percent over 2012. Overall, the total bilateral trade grossed nearly US$920 million in 2013, up 27 percent year on year.

 

Vietnam’s key exports to South Africa included telephones and accessories; footwear; computers, electronic products and components; machinery, equipment, tools and spare parts; garments and textiles; rice; chemical products; pepper; coffee; and cashew nuts. Telephones and parts were the biggest export, generating US$462 million in 2013, up 99.83 percent year on year. In the meantime, Vietnam imported steel, metals, chemicals, plastic materials, cotton, fibres, fertilisers and other products from South Africa. In addition to agricultural, forest and aquatic products, high-valued commodities like computers, electronic products were also shipped to this market. In the year, export revenue from machinery, equipment, tools and spare parts increased 44.06 percent year on year; takings from garments and textiles jumped 17.92 percent; pepper rose 31.49 percent pepper; iron and steel products climbed 85.3 percent; wood products leaped 25.39 percent; means of transport and spare parts advanced 15.27 percent.

 

In the coming time, the two sides will continue to deepen cooperation, particularly in the fields of their strengths such as garment - textile, footwear, fishery and wine, to bring bilateral trade ties to a new level that matches their development cooperation potential. Ms Ho Thi Ngoc Lan, Director of International Business of Kinh Do Corporation, who has long experience in doing business in South Africa, said, Kinh Do Corporation has supplied confectioneries to the two largest supermarkets in South Africa, namely Shoprite and Checher, and raised its export turnover to this market to US$4 million last year. Currently, Kinh Do Corporation is holding an advantage in this foreign market. And in 2014, the firm expects to expand its distribution channels by 20 percent over the previous year. In the future, Kinh Do will establish a representative office in South Africa and expand many showrooms to serve consumers here.

 

Ms Kr Magau, South African Ambassador to Vietnam, confirmed that South Africa not only appreciates the comprehensive cooperation with Vietnam, but is also the long-term ally and the second largest exporter of Vietnam. And, trade is the only way to improve people's lives and bring sustainable development not only for South Africa, but all African nations.

 

Mr Vo Tan Thanh, Vice President and Director of VCCI - HCM City Branch, said, as the economic centre of the southern region and the entire country, HCM City is always an attractive destination to foreign businesses, including South Africans. In 2013, the city’s economic growth reached 9.3 percent, more than 1.7 times that of the country's average. In the year to December 15, 2013, the city licensed 440 fresh FDI projects with a total registered capital of over US$963 million, an average of US$2.2 million per project. However, he added: "In investment relations, South Africa has only three effective investment projects in Vietnam with a modest registered capital of about US$180,000. Some Vietnamese companies like Vietranimex Export Import Joint Stock Company, Truong Thanh Furniture Corporation and Hanoi General Trade Company also had bonded warehouse establishment projects in South Africa."

South African Consul Do Thi Kim Lien also shared her experience in business cooperation with South Africa to Vietnamese companies. She said Vietnamese firms need to have patience, resolution, confidence and responsibility and honesty and willingly accept risks to achieve success. She hoped that, after this meeting, many contracts will be signed by companies of the two sides. The South African Consulate in Ho Chi Minh City will support to a maximum and be ready to become the bridge connecting enterprises of the two countries.

 

Specially, to make South African wines a favoured everyday drink for Vietnamese people, the Honorary Consul of South Africa in Ho Chi Minh City sponsored Animus cocktail show programme, which features cocktail concocted from South Africa wine, performed by Animus Joint Stock Company - an exclusive distributor of South African wine in Vietnam. Animus Vietnam Joint Stock Company sponsored African wines to artists, singers, musicians, directors, actors, actresses and models at the 27th Vietnam Charming Programme held in Da Nang City on March 27 and 28.