South Africa, VN to increase trade
South Africa, VN to increase trade
Trade between Viet Nam and South Africa has great potential for development with co-operative ties in many sectors, South African Ambassador Kgomotso Magau said yesterday during a seminar and business matching event held in HCM City.
As a major exporter of mineral-based commodities, South Africa is able to meet industrial sector demand in Viet Nam, she said.
"Our embassy has noted strong growth in domestic consumption fuelled by increasing income levels, not only in South Africa, Viet Nam and Africa in general. This presents an upward demand for our respective products.
"We have also noted that infrastructure development in our region has resulted in joint ventures between service providers such as Viet Nam's Viettel in our neighbouring country," she said.
Nguyen The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry in HCM City, said that trade between Viet Nam and South Africa had increased significantly but was far below potential.
Bilateral trade was worth US$1.1 billion last year, with Viet Nam's exports accounting for $1 billion. Kabelo Kenneth Malatsi, director of the Export Promotion, Trade and Investment of the Department of Trade and Industry South African, said that South Africa wanted to expand investment and trade ties to narrow its trade deficit with Viet Nam.
Malatsi is leading a delegation of 20 business executives from South Africa to explore trade opportunities in Viet Nam.
Looking for investors
South Africa is also seeking foreign investment in sectors like advanced manufacturing, metals, mining, bio-fuel and agribusiness as well as precision engineering, ICT and electronics, and leather and footwear. South Africa offers stable economic growth, abundance of natural resources and modern infrastructure plus investment incentives offered by its government, according to Malatsi.
Do Thi Kim Lien, the South African Honorary Consul in HCM City, said with such exchange activities, trade between the two countries was likely to expand greatly and reach $2.4 billion this year.
"We are striving to boost exports of Viet Nam's agricultural products, garments and textiles, footwear and essential products to South Africa," she said.
Meanwhile, South Africa's fruit and wine, the country's famous export items, have great potential for trade in the Vietnamese market.
Ho Thi Ngoc Lan, export director of Topcake Joint Venture Co Ltd, said the country had high requirements of quality compared to other African countries.
Vietnamese businesses must attach special importance to product quality when exporting to South Africa, she noted.
Hue Phong, chairman of Happy Bank, told Viet Nam News that he was interested in investing in technology, education and agriculture in South Africa.
Viet Nam's main exports to South Africa are mobile phones and accessories, footwear, garments and textiles, coffee, rice, gemstones and metals, timber and timber products, computers, seafood, milk, cashew nuts and instant noodles.
