There is enormous potential
for investment and trade between South African and Việt Nam, according to political counselor at
the South African Embassy in Hà Nội, Mat Matiwane.Speaking at a seminar on trade, investment and tourism
promotion by South Africa in HCM City on Friday, he said the two countries have
something to offer each other.“South Africa is a major exporter of mineral-based
commodities, which could assist Việt Nam in its expanding industrialisation.”
Strong growth in domestic consumption fuelled by increasing income levels in
both nations is creating demand for their respective products, he said.“Infrastructure
development that took place in Southern Africa has also resulted in joint
ventures between service providers such as Việt Nam’s Viettel in
our neighbouring country.”Nguyễn Thế Hưng, deputy director
of the Việt Nam Chamber of Commerce and Industry’s HCM City
office, said
trade between Việt Nam and South Africa has increased
significantly.
It was worth US$924.5 million in the first 11 months of last year, with Việt Nam’s exports
accounting for over $704 million, he said.“As of November last year South African firms had invested
$1.22 million in seven projects in Việt Nam while Vietnamese firms had invested $1.6 billion in two
projects in South Africa."Despite the great strides in bilateral trade and
investment relations, trade between Việt Nam and South Africa remains largely untapped.”
In addition, South Africa,
with its many spectacular sights and cool weather around the year, remains an
unexplored destination for Vietnamese tourists, he said.Matiwane said: “It
seems there is a lack of information on both sides about each other’s business
opportunities as well as social and cultural environments. One cannot seize an
opportunity if one does not know that it exists.”
Some attendees pointed out
that the difference in payment methods -- with South African firms wanting
payment in advance while Vietnamese companies prefer letters of credit -- is
another obstruction to trade.Matiwane listed areas in which the two sides could
enhance co-operation, like aquaculture, shipbuilding, advanced manufacturing,
infrastructure, metals, mining, furniture, agribusiness, garment and textile,
and footwear.
There is huge potential for
export of Vietnamese agricultural products to his country, especially fruits it
does not have, he said.South Africa boasts stable economic growth, an abundance
of natural resources and modern infrastructure, and offers investment
incentives, and could also act as a gateway for Vietnamese products to the rest
of the continent, he added.
He also encouraged investors and trade partners to “take a long-term view to
co-operation” to ensure that their investment in trade with South Africa is
sustainable and profitable.Việt Nam’s main exports to South Africa are mobile
phones and accessories, computers, electronic products, footwear, coffee, rice,
pepper, wooden
products, and cashew nuts.It imports iron and steel, raw materials for footwear
and garment and textile industries, chemicals and plastic materials.The meeting
was organised by the VCCI in collaboration with the South African embassy in Việt Nam.
Source: Vietnam News, Vietnam Tuesday, 23 January 2018