Among newly targeted markets, South Africa, a leading economy in Africa, has emerged as a market of great potential for Vietnamese enterprises. The governments of Vietnam and South Africa have paid careful attention to the development of the two countriesrsquo; economic and trade co-operation.
So far, the Vietnam-South Africa economic and trade co-operation has developed rapidly. According to the Department of Africa and West Asia, under the Ministry of Trade, in recent years, South Africa has become the largest partner of Vietnam in Africa. The two countriesrsquo; two-way trade exchange has seen a high growth rate. In particular, Vietnam's export turnover to South Africa increased from US$1.2 million in 1992 to US$55.5 million in 2004. Vietnamrsquo;s import turnover from South Africa saw a sharp increase in 2002, 2003 and 2004. Vietnam imports mainly steel and steel products from South Africa, which account for 90 per cent of Vietnam's import value from the country. Goods exchanged by Vietnam and South Africa are various. Vietnamrsquo;s main export items to South Africa include rice, footwear, coal, plastic products, and textiles and garments. Rice is the most important export of Vietnam, accounting for between 50 and 60 per cent of the countryrsquo;s export turnover. Recently, Vietnam has exported electric, electronic, mechanic, household appliances, handicrafts and woodwork products to South Africa. Vietnam imports chemicals, steel, machines, artificial fabrics and plastic materials from South Africa.
Vietnam-South Africa co-operation in services and investment has yet to meet the two countries' potential. Some Vietnamese banks have become agents of some South African banks. In terms of tourism, South Africa is the country in Africa to have most visitors to Vietnam. Vietnam and South Africa have carried out some projects in tourism and trade promotion. South Africa has no direct investment projects in Vietnam and Vietnam has not invested in South Africa yet. The two countries have not developed bilateral co-operation in intellectual property rights.
Some Vietnamese companies are reported to have opened their branches in South Africa. For example, the Viet Trang Import and Export Joint stock Company (Viettranimex) has opened a branch in Port Elizabeth; the Hanoi General Import and Export (Haprosimex) has opened its branch in Pretoria. These branches are operating effectively. Some other companies, including the Saigon General Import and Export Company (Incomex), the Vietnam New Technology and Tourism Corporation (Newtatco), the Southern Shipbuilding Industry Investment and Development Company (SIDC) and the Thai Son Company of the Ministry of Defence are promoting the establishment of representative offices in South Africa.
To boost economic and trade co-operation with South Africa, according to the Ministry of Trade, the State should promote market studies and exploration, providing information about market, goods, trade barriers, and solutions for enterprises of the two countries. The Vietnamese embassies and trade mission in South Africa should provide further support to help Vietnamese enterprises enter the South African market by opening branches and representative offices and developing proper business strategies.
In fact, South Africa is an open market with fierce competition. Whether enterprises succeed in the market or not depends much on their dynamism and determination in market studies, information collection and analysis. More importantly, they should be active to export goods which are needed in South Africa, instead of exporting goods they already have.
Vietnamese
