In its import and export development strategy and market diversification strategy, Vietnam sees potential for extensive trade and investment cooperation with South Africa. On the occasion of South African President Thabo Mbeki’s visit to Vietnam, his delegation had an exchange meeting with Vietnamese companies at the Vietnam-South African Business Forum in Hanoi May 24. The forum was held by Vietnam Chamber of Commerce and Industry (VCCI) in coordination with the South African Embassy in Vietnam.
Nearly 20 companies from South Africa, which mainly operate in finance, banking, insurance, agricultural products, food, drink, chemical, wood, gold, silver, diamond, oil, gas, telecom, education, general trading and tourism, attended the forum to meet Vietnamese partners.
According to Vietnamese Deputy Minister of Trade Luong Van Tu, Vietnam-South Africa bilateral trade ties have significantly increased in recent years. At present, South Africa is Vietnam’s largest export market in Africa. Vietnam’s trade turnover with South Africa was just over US$56.8 million in 2004, while the figure jumped to US$101 in 2006. Vietnamese exports to South Africa are rice, footwear, coffee, wood and wooden products. In 2006, Vietnam spent US$54 million to import commodities from South Africa, including steel, ordinary metal and wood materials.
“However, the above figures do not meet the expectations and potential of the two countries,” Tu said. Bilateral trade ties between Vietnam and South Africa need to generate more activity in investment, banking, insurance, transport and tourism, which remain very modest. In addition, the two can mutually develop various fields like agriculture, forestry, fisheries, science, technology, education and construction.
According to information from the South African Embassy in Vietnam, until now, there is only one South African company to invest in Vietnam. Coca-Cola Sabco has invested in three factories in Vietnam, one in southern Ho Chi Minh City, one in northern Ha Tay Province and one central Danang City. South Africa’s leading multinational SAB Miller officially invested US$22.5 million in a joint venture with Vinamilk of Vietnam to brew beer, with annual output of one million hecto-litres, which became operational in March 2006. Several Vietnamese companies have already opened representative offices and branches in South Africa.
Tu said to boost economic and trade ties between Vietnam and South Africa, the two governments need to create a favourable legal environment for economic, trade, investment and tourism supported by the agreements on investment encouragement and protection, on double tax avoidance, on tariff and non-tariff barrier reduction, and on cooperation in agriculture, science, technology, and education.
Lan Anh
Vietnamese
