"In the framework of Vietnam - Africa/Middle East Business Forum, which aims to tap into African - Middle East markets, the Vietnam Chamber of Commerce and Industry (VCCI) has launched many business supports for enterprises of both sides, e.g. forums and meetings for financial and banking companies, business matching events, presentations on business administration, human resource development administration, introduction of business opportunities and partner matching.”
This information is shared by Dr Doan Duy Khuong, Vice President of VCCI, at the Vietnam - South Africa Trade, Investment and Tourism Promotion Conference. The event was jointly held by VCCI in cooperation with the Dak Lak Provincial People’s Committee and the Embassy of South Africa in Vietnam in Buon Me Thuot City in early November 2016.
Currently, Vietnam is a leading strategic partner of South Africa in the Southeast Asian region. Economically, Vietnam’s trade turnover with South Africa always tops among its trade ties with other African countries. Thus, South Africa is seen as a prime example of Vietnam’s substantial trade ties with the African continent.
According to statistics, in nearly 10 latest years, the total bilateral trade value between Vietnam and South Africa has increased more than five times, from US$192 million in 2007 to US$920 million in 2013 and US$1.2 billion in 2015. In the first six months of 2016, the two-way trade value reached US$524.7 million, of which Vietnam’s exports valued US$473.3 million and its imports from South Africa were worth US$51.4 million.
Vietnam’s shipments to South Africa declined in the first six months of 2016 from a year earlier. But, key agricultural exports of Vietnam to South Africa still advanced strongly. Pepper and coffee posted an export growth 29.8 per cent and 75.9 per cent, respectively. Other gainers included mobile phones, footwear, computers, apparels and chemicals. Declines were machinery, equipment and cashew nuts because of South Africa’s economic slowdown.
Meanwhile, Vietnam mainly imported inputs for industrial manufacturing such as plastic, garment and textile material, footwear materials, chemicals, base metals, iron and steel.
Dr Khuong said, apart from rice, Vietnam can pin high hopes on boosting coffee and pepper export to the African market, especially Muslim states in North Africa. Coffee and pepper export has been on the sharp rise in the past years. Coffee accounted for 18 per cent of Vietnam’s exports to this market.
“Industrial cooperation is hugely potential for development, particularly mining, steel processing, mining technology, logging and pulp processing. Vietnam is considering cooperation with South Africa in thermal power, automobile manufacturing and assembly, food processing, wine production and specially chemical,” he said.
In the past years, South Africa has invested more than US$100 billion in infrastructure and planned to invest US$400 billion more in the next 15 years. This is a good opportunity for Vietnam to boost exports, especially for potential items such as coffee and cement.
He added that South Africa always has an important position in Vietnam’s general policy. Vietnam has constantly expanded cooperation with South Africa - an important gateway to Africa for Vietnam, a member of the emerging economic block of BRICS, a G-20 member and many important international institutions. This shows the confirmation of the Government of Vietnam to its focus on expanded cooperation with South Africa.
However, the two-way trade performance is still below their potential, Dr Khuong said. To boost the two-way ties, in addition to lowering transport costs and dealing with regional economic downturn, the two sides also need to be more active to seek investment and business opportunities. The two governments also need to encourage shipping and logistics enterprises to enhance their cooperation to better support importers and exporters in Vietnam and South Africa. Suggested cooperation fields include freight transport and forwarding, personnel training and ocean shipping cooperation.
For its part, as an information channel and a prestigious bridge for domestic and international companies, against the backdrop of extensive international integration, VCCI will collaborate with relevant bodies to organise useful activities to help enterprises to enhance their competitiveness and expand access to potential markets. In 2015, the agency had more than 30 presentations on African market in Vietnam’s major localities such as Da Nang, Quang Ninh, An Giang, Dong Thap, Dong Nai, Can Tho, Vung Tau, Ninh Thuan, Hue, Ha Giang, Ninh Binh and Thai Binh.
Speaking at the seminar, Vice Chairman of Dak Lak Provincial People’s Committee Nguyen Tuan Ha said, Dak Lak has a huge advantage and potential for tapping tourism. The province can integrate landscape, ecological, environmental and cultural values for tourism. The province also has a lot of agricultural products for export like coffee, pepper, rubber and honey. In addition, Dak Lak can also develop high-tech agriculture and renewable energy. For that reason, the provincial government will provide best conditions for investors to unlock local potential and advantage for joint development.
Anh Mai
Vietnamese
