“In the process of international economic integration, one of the key tasks of the import – export development strategy of Vietnam is expanding and diversifying its markets. The Republic of South Africa is emerging as a market with huge potential for Vietnam’s enterprises now,” affirmed Dr Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) at the workshop on Vietnam – South Africa investment and trade promotion held recently in Hanoi.
The workshop was attended by 16 enterprises from South Africa seeking trade and investment opportunities, including those involved in the fields of agro-processing, information technology, mining, etc and for the first time two enterprises in South African defense. Many Vietnamese enterprises also participated in the workshop.
According to Dr Khuong, Vietnam and South Africa established the diplomatic relations in 1993. This relation has been a solid foundation for the development of cooperative relations in various fields. In the economic field between the two countries, in April 2000, a trade agreement between the two countries was signed, stipulating most favoured nation for each other in two-way trade. In particular, in the South African official visit of Prime Minister Phan Van Khai in November 2004, the two countries signed a number of important documents such as the Joint statement on Partnership for Cooperation and Development, the Agreement establishing intergovernmental partnership forum on cooperation in economy, trade, science, technology and culture; the agreement establishing a Joint Trade Committee, etc. This is an important premise to promote stronger multi-faceted and long-term relations between the two countries.
Dr Khuong said that Vietnam mainly exports to South African goods including footwear, textiles, coffee, rice, gem products and precious metals, wood and wood products, computers, electronic products and components, rattan, seafood, milk and dairy products, cashew nuts, coal, instant noodles, etc., while Vietnam imports mainly from South Africa items namely iron and steel, metal, wood and wood products, chemicals, plastic materials, cotton and fibre of various types, fertilizers, etc.
Trade turnover between the two countries has grown steadily over the years. This is shown in the figures over the years. Particularly, in 2012, trade turnover between the two countries reached US$722.6 million, in which export reached US$612.6 million while imports reached US$110 million. In 2013, import and export turnover reached US$920 million, in which export reached US$765 million and import US$155 million.
“Although there have been significant results in cooperation and business relations, objectively, these results are still low compared with the potential and desire of both sides. Enterprises of the two countries play a leading role in raising the level of economic and trade cooperation between the two countries, contributing to consolidating and further developing the friendly bilateral relations,” said Dr Khuong.
Dr Khuong hopes that the Vietnam – South Africa workshop on trade and investment promotion will be a positive contribution to the promotion of relations on trade, import, export, investment in which the two governments take into great consideration.” The VCCI is and will always be providing active support for the two countries’ enterprises to do business together,” said Dr Khuong.
According to South African Ambassador Kgomotso Magau Ruth, South Africa is the largest partner of Vietnam in Africa. She confirmed that South Africa has very favorable conditions for trade cooperation with Vietnam, while South Africa mainly exports minerals that Vietnam needs for its industrial development. In addition, national security is also a strength of South Africa, which is also a potential area for Vietnam’s market.
According to a representatives of the Ministry of Trade and Industry of South Africa, due to the fact that trade turnover between the two countries have grown steadily over the years yet lacking of balance. In particular, South Africa suffers from trade deficit and exports raw commodities to Vietnam. Therefore, this time, South Africa wishes to promote export of its finished goods that South Africa has advantages in such as weapons, military equipment, etc.”
Quynh Chi
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