On eve of the ASEANTEX exhibition in November in South Africa, Vietnam Business Forum conducted an interview with the ambassador of South Africa to Vietnam, Mr. Goitsimolimo Leonard Pitso about highlighted the achievements in South Africa-Vietnam trade relations.
What significant trade development have the two countries had since the establishment of diplomatic relations between the two countries (December 12, 1993), in particular during the past three years?
Bilateral trade between South Africa and Vietnam has grown significantly since the establishment of diplomatic relations in 1993. Even over the last three years, trade volume has increased significantly. At current exchange rates, the trade volume has gone from US$91 million in 2002 to US$140 million in 2004. Another interesting development in this period is the increased exports of Vietnamese rice to South Africa, which accounts for about 50% of the export turnover. However most of this rice is then re-exported to other countries in the region, the South Africa Development Community, and other West African countries. I foresee that this trend will continue, also in other communities and products, as South Africa offers excellent port facilities, infrastructure and transport facilities to enable Vietnam to export its products to other southern African countries and not remain limited to only one export destination. I expect South African exports to Vietnam will also continue to grow, with the strong demand for construction materials and wood in Vietnam to fuel the high growth rate.
What can you say about the quality of Vietnamese rice, in comparison with other exporters, as one of the main exports of Vietnam to South Africa?
South Africa generally prefers maize or wheat as their staple food, with rice becoming increasingly popular. The origin of rice that South Africans buy at the supermarket are generally not the determining factor, as long as the rice is a good quality, long-grain rice, and easy to cook. Rice is mostly sold under known, existing brand names and only specialized consumers may look for the country of origin, for example to use in Japanese or Indian cooking. It is important for Vietnamese rice exports to limit the breakage to rice grains, as this impacts negatively on the quality. In the case of rice exports as in other food products, South Africa is a convenient entry point into the region and continent, and if Vietnam continues to export excellent Vietnamese rice, African countries will continue to buy it.
As South Africa is the gateway to Africa, what is South Africa doing to boost trade development between the two countries and also between Vietnam and Africa?
There are a number of trade and business events that take place in South Africa every year, including SAITEX and ASEANTEX, which are supported by the South African government through the relevant ministry, the Department of Trade and Industry. There is growing interest and participation from Vietnam. In fact, a high level Vietnamese delegation will participate in ASEANTEX this November in South Africa, and combine their visit with official meetings with the Deputy Minister of Trade and Industry that visited Vietnam last September. The South African Embassy in Vietnam has been working and will continue to work towards enhancing the good bilateral relations that exist through information exchanges, business and trade workshops, cultural events and tourism and education promotion.
What advice do you have for the Vietnamese enterprises that want to export goods to South Africa?
The South Africa market is diverse. Exporters should study the market to decide whether there is any potential demand for his or her products. They should use the services of the Chamber of Commerce and Industry or local government departments in both countries, or professional consultants besides, speaking to other business people that have already entered the market to learn from their experiences.
Reported by Thu Huyen
Vietnamese
