South African Market Has Room for Vietnamese Exports

In recent years, South Africa has become the biggest partner of Vietnam in Africa with the two-way trade exchange value seeing a significantly rapid increase. In particular, Vietnam’s export turnover to South Africa increased from US$1.2 million in 1992 to US$55.5 million in 2004.

 

In fact, since Vietnam opened its trade mission in South Africa in the 1990s, trade exchange between the two countries has increased rapidly. Also, this has helped Vietnamese enterprises export directly to the market.

 

Vietnam has exported various goods to South Africa, mainly rice, footwear, coal, plastic products, textiles and garments. Rice often occupies the highest proportion, accounting for between 50 and 60 per cent of Vietnam’s export value. Most Vietnamese rice exported to South Africa is re-exported to other African countries. In recent years, Vietnamese enterprises have begun to export electric and electronic products, household appliances, handicrafts and woodworks to South Africa.

 

At present, Vietnamese enterprises have not exploited fully potential of some exports, including plastic products, accounting for only 2.52 per cent of South Africa’s import turnover; rubber and rubber products, 1.3 per cent; handicrafts, medicines (2.25 per cent), synthetic fabrics, food and woodworks.

 

According to remarks by enterprises who accompanied Prime Minister Phan Van Khai during his visit to South Africa in November, 2004, Vietnamese enterprises do not have to worry about their competitiveness in South Africa. Bui Ngoc Loan, chairman of the Vietnam Freight Forwarding Association, said that there was much room for Vietnam’s main exports in the South African market and the African market as a whole. Loan said that Vietnamese enterprises should concentrate on exporting main items, including farm-produce, coffee, black pepper, processed food, textiles and garments, handicrafts and woodworks, as they have higher competitiveness than goods of the same kind imported by South Africa from other countries. Despite being one of the largest wood exporting countries in the world, South Africa’s woodworks are not as beautiful as Vietnamese-made products. Prices of textiles and garments in South Africa are not as competitive as Vietnam’s products. This offers an opportunity for Vietnamese textile and garment enterprises.

 

South Africa is the most developed country in Africa and the market has a huge demand for equipment and machinery, especially for producing consumer goods. Chinese and Thai enterprises are concentrating on exploiting this opportunity. According to experts, Vietnamese enterprises can export machinery and equipment to the market.

 

Another advantage for Vietnamese exporters is an effective assistance from the overseas Vietnamese community in South Africa. Many overseas Vietnamese have introduced Vietnamese products to local enterprises.

 

However, it is easy to understand that a long distance from Vietnam to South Africa is one of the obstacles to Vietnam’s export to the market. As a result, enterprises of both Vietnam and South Africa do not have enough information about markets, business customs, and taste of customers. To overcome this difficulty, the use of online trading floors is an effective solution. Therefore, the Vietnam Chamber of Commerce and Industry (VCCI) has recently launched a Vietnam-Africa online trading floor at www.vinafrica.com to connect enterprises of the two countries. to connect enterprises of the two countries.

Despite good understandings about its advantages and disadvantages, Vietnamese enterprises should consider South Africa a new market with fierce competition. The success or failure in the market depends much on their dynamism and determination.

 

 

C&T Tourism and Trading Co. Ltd (C&T Co) has exported its garment and textile products, and carved furniture and forest products to Europe, Japan and other Asian countries. In 2004, the total export revenues of the company stood at some US$300,000. We haven’t done business with any African firms and haven’t got access to African market yet. We participated in the ASEANTEX 2005 trade fair with the hope of seeking business and cooperation opportunities in African market. We hope to export garment and textile products and handicraft items to Africa and import timber from South Africa. In addition, we may import other products from South Africa into Vietnam and export other products from Vietnam to South Africa if we discover markets when discussing with our partners. In my opinion, South Africa is a huge potential market for Vietnam. However, we feel a bit hesitant about payment processes because at present there is no common international payment system such as L/C or T/T opening. The common payment method is goods-for-goods. If the payment procedures are improved, South Africa will become a very large market for us.

 

 

Our major products are garment and textile products such as T-shirts, polo shirts, pyjamas, and sleepwear. We are responsible for all production stages from design to sales. All our products are for export. In the first ten months of 2005, we have exported 300,000 products worth US$300,000. Viet Huy’s main export market is Europe. As far as I know, South Africa is an easy market for Vietnamese garments. Thus, we are taking part in the ASEANTEX 2005 trade fair with the aim of measuring the sales possibility of our products in South Africa. This is also our chance to discover the tastes, customs, sales and taxation procedures in South Africa.

 

 

VINAFOOD I is a State-owned enterprise specialising in importing and exporting agricultural products like rice, green peas, soybeans, black beans, peanuts, sesames and pepper. VINAFOOD I recorded a total export revenue of some US$25 million in 2004. In the first 10 months of this year, VINAFOOD I earned around US$15 million from exports. VINAFOOD I products have reached many nations worldwide. As for the African market, our rice has been exported to Angola and Algeria. However, we haven’t had business cooperation with South Africa. We expect to seek new partners and expand markets, not only for agricultural products but also others, in Africa at the ASEANTEX 2005. At present, South Africa doesn’t import much rice but the country is a commercial hub in Africa. We can export our products from South African to other Asian nations. We also want to find partners to import our concerned products from South African and to set up joint ventures or bonded warehouses with African businesspeople.

 

South Africa is a multi-race country with a very attractive nature. It may be my occupation-biased assessment but South Africa has a very special beauty. During this visit to South Africa, my first wish is to visit the unique nature and scenery of this country. After surveying customers’ tastes here, I will introduce our main products in South Africa. Our products comprise of interior decors like beds, wardrobes, tables, chairs and pictures in classical European styles. I hope that South Africans will like my products.