Vietnam-South Africa trade ties flourish

Of the figure, Vietnam’s exports to South Africa reached US$815 million and imports were US$147 million, said Vietnam Trade Counsellor Nguyen Hong Tien.

The country’s exports to South Africa have changed for the positive in recent years, Tien said, adding that coffee exports were up 71% (accounting for 18% of market shares) and footwear was up 7% (making up 12.5% of market share)

Meanwhile, due to a showdown in the domestic real estate market, waste steel imports from South Africa dipped sharply by 38%.

Tien said the economic development forecast for both Vietnam and South Africa in 2015 is positive. The Vietnam government has set a goal for a GDP growth rate of 6.2%, higher than last year’s rate of 5.98%.

While South Africa has predicted a growth rate of 2.6%, nearly twofold last year’s rate of 1.4%.

The Vietnam Government has continued to pay more attention to boosting ties with Africa, including South Africa and has announced diplomatic and trade promotion activities would be further accelerated in 2015.

However, Tien underscored the point that the two countries have not instituted direct relations in banking, causing difficulties for payment. In addition, direct air and maritime routes have not been established, which hinders trade.

Furthermore, Vietnam businesses have not paid sufficient attention to potential markets in Africa, particularly South Africa, such as making fact-finding tours or joining fairs and exhibitions.

The Vietnam Chamber of Commerce of the Embassy in South Africa cum in Mozambique, Zimbabwe, Namibia, Botswana, Swaziland and Lesotho reported that last year two-way trade turnover between Vietnam and these countries hit US$92.9 million, US$34.7 million, US$26.4 million, US$21.1 million, US$14.7 million and US$12.3 million, respectively.

Tien said cooperative prospects between Vietnam and these countries are huge as they are in high demand for importing Vietnam’s key export products, especially rice and believes South Africa is the gateway for improved relations with other African countries.