South Africa to Continue to Strengthen Relations with Vietnam

April 27 became South Africa’s National Day after the demise in 1994 of the most brutal, racial and discriminatory system (apartheid), which was declared a “crime against humanity” by the United Nations. For the first time in the history of South Africa, black people voted for a democratic government on April 27, 1994, which gave birth to what is now famously known as the “rainbow nation” in which black and white South Africans live together, united in their diversity with the belief that South Africa belongs to all who live in it.

With the entrenchment and consolidation of democratic values, the South African people voted for their second Municipal elections on 1 March 2006 of which the majority of electorates voted for the African National Congress. Under the ANC-led Government the economy of South Africa is growing rapidly with an average growth of 4.9% in 2005. In his State of the Nation Address in February 2006 President Thabo Mbeki said that, “we should move faster to address the challenges of poverty, underdevelopment and marginalization confronting those caught within the Second Economy”.

Overall business confidence also remains high. Immediately after the Minister of Finance, Mr. Trevor Manuel presented his 2006-2007 Budget Speech to the National Assembly on 15 February 2006, the British Broadcasting Corporation (BBC) reported that “South Africa’s economy is set to sustain growth at its fastest pace in more than 20 years, with surging revenues allowing the government to hand out hefty tax cuts for individuals and small business taxes in the latest stage of campaigning to lower the burden on the lower and middle income groups”.

It feels good to celebrate South Africa’s National Day in Hanoi, Vietnam, a country that had supported the genuine course of the liberation of the black masses of South Africa during the height of apartheid. South Africa, under the ANC-led Government will continue to strengthen and expand its bilateral relations with Vietnam in all spheres of life.

Between September 2005 and January 2006, three South African Ministers, Dr. Essop Pahad in the Presidency accompanied by Deputy Minister of Trade and Industry, Ms. Elizabeth Thabethe, Mr. Mosiuoa Lekota of Defence and Mr. Ronnie Kasrils of Intelligence visited Vietnam.

The Vice Minister of Trade of Vietnam Do Nhu Dinh led a Vietnamese trade delegation that participated in ASEANTEX 2005 and witnessed the inauguration of the Joint Trade Committee between South Africa and Vietnam. Also the Minister of the Government Office of Vietnam Doan Manh Giao also visited South Africa in March 2006. These high level visits are indicative of the growing bilateral relations between South Africa and Vietnam.   

The bilateral trade between South Africa and Vietnam is growing significantly since the establishment of diplomatic relations during the past decade. Two-way trade between the two countries grew from US$150 million in 2004 to US$250 million in 2005. Whatever progress we have made so far, much remains to be done to unleash our full potential to strengthen economic relations between our two friendly countries.

While trade has signified great potentials for economic cooperation, investments between South Africa and Vietnam remains low, constituting less than 1%. There remains a challenge to identify potential investment sectors that would benefit our two friendly countries and peoples.

The tourism sector also requires further attention. In 2005, about 700 have Vietnamese visited South Africa and over the past few years a significant number of South African tourists have visited Vietnam. Tourism can be a driving force for economic development and an agent for promoting people-to-people contact.

 

I would like to take this opportunity to congratulate the Government and peoples of the Socialist Republic of Vietnam on successfully hosting the recent 10^th Congress of the Communist Party of Vietnam. We are confident that whatever resolutions has been adopted during the Congress, the Vietnamese leadership will continues take bold steps in ensuring economic development to push back the frontiers of poverty.