Paving the Way to Africa

The Vietnamese delegation to the ASEANTEX 2005 consisted of representatives from over 130 enterprises, which was led by vice president of the Vietnam Chamber of Commerce and Industry (VCCI) Doan Duy Khuong. Vietnamese enterprises introduced their processed food, textiles and garments, footwear, medicines, engineering products, woodworks and handicrafts. Vietnam had one more pavilion to introduce and promote the image of the Vietnamese people, land and economic potential.

 

During the fair, VCCI co-operated with the Chamber of Commerce of South Africa (CHAMSA) to organise a Vietnam-South Africa trade promotion forum, which saw the participation of over 300 enterprises in Vietnam and South Africa. The forum was an opportunity for enterprises to introduce the Vietnamese investment and business environment.

 

At the same time, a seminar and meeting with enterprises in Cape Town was held by VCCI and the Cape Town Chamber of Commerce with the participation of 50 local enterprises. During the event, many contracts were signed. For example, the Hiep Hung Company signed a contract, valued at over US$100,000, to supply over 30,000 bags made of brocade and the Cape Linen Company signed a contract to supply bedroom items and handicrafts. Tran Trong Do, a member of the executive board of the Bank for Foreign Trade of Vietnam (Vietcombank), said that during the visit Vietcombank met representatives of four biggest banks in South Africa to discuss their possible co-operation in money transfer to help enterprises of both Vietnam and South Africa promote trade. It is expected that in early 2006, representatives from the four banks will go to Vietnam for further negotiations on their co-operation.

 

Talking about the fair, Bui Thuc Duc, director of the South Asia Footwear Import and Export Joint stock Company, said that the fair’s scale remained too small in comparison with the demand for trade exchange between ASEAN and South Africa.

 

In recent years, South Africa has become Vietnam’s largest trade partner in Africa. Vietnam’s export turnover to South Africa increased from US$1.6 million in 1995 to 55.5 million in 2004. So far, Vietnamese enterprises have exported products, which are major Vietnamese export items, such as footwear, rice, plastic and textile and garments, to South Africa. Of which, rice often occupies between 50 and 60 per cent of Vietnam’s total export turnover. Vietnamese rice after being imported to South Africa is exported to other African countries. Recently, Vietnam has begun to export industrial products, including electric and electronic equipment, household appliances and handicrafts to Africa. However, due to many reasons, the volume of trade exchange between Vietnamese and South African enterprises remain constrained, and is yet to match the two sides’ potential.

 

Do Nhu Dinh, deputy minister of trade, said that despite the rapid progress in trade exchange between Vietnam and South Africa, there were constraints in their exchange of investment and services. South Africa has not invested in any project in Vietnam yet. So far, some Vietnamese enterprises have opened their representative offices and branches in South Africa and some commercial banks have reached agreements on establishing agents. To further facilitate the two countries’ trade exchange, the two governments should create more favourable legal environments. In addition, information exchange should be promoted, especially in trade and investment promotion, lists of fairs and exhibitions and imports and exports.