08:42 | 25/03/2016 Trade
(VEN) - Trade relations between Vietnam and South Africa have steadily developed in the recent period. Bilateral trade reached US$1.16 billion in 2015, a rise of 20 percent compared with 2014, and this included US$1.04 billion worth of Vietnamese exports to South Africa, a 30.9 percent increase compared with 2014.
Vietnamese pavilion at the South African International Trade Exhibition 2015
Vietnamese exports to South Africa have grown on a stable basis in recent years. Key Vietnamese exports such as rice, seafood, coffee, pepper, cashew nuts, and high-tech products have found a secure niche in South Africa. Coffee, pepper, and cashew nuts occupy the number one position in the South African market; with footwear and tra fish rank second; followed by rice and telephones. The governments of the two countries are looking towards doubling current bilateral trade through the exchange of goods that are advantages of the two sides, for example South African coal, beef and fruit; Vietnamese rice, seafood, electronic products, computers, and construction materials, and resuming negotiations on the agreement on double taxation avoidance.
To attract investors, South Africa applies a variety of preferential policies in fields such as electrical equipment, household utensils, textiles and garments, leather, consumer goods, paper pulp, paper, wood products, auto spare parts, mineral mining, and green industry. Investors in the field of green, clean energy are offered special preferences. Infrastructure development investors are offered tax preferences.
The two sides have explored cooperation possibilities in thermoelectricity generation. Results showed that the quality of South African coal was sufficient to be used for Vietnamese thermoelectric plants. South Africa has sufficient coal resources for long-term supply to Vietnam at low costs. However, to ensure effective cooperation, Vietnam needs equipment and facilities that allow it to import large volumes of coal and deal with coal prices in accordance with international practices.
The Vietnamese trade office in South Africa has organized effective trade promotion programs such as the Vietnamese pavilion at the South African International Trade Exhibition (SAITEX 2015), the meeting between Vietnamese and South African businesses in Cape Town on the occasion of Deputy Prime Minister Hoang Trung Hai’s official visit to South Africa, and the presence of Vietnamese tra fish on the menu of the Saigon Cape Town Restaurant.
Vietnamese exports to South Africa this year are expected to reach US$1.2 billion. To achieve this target, the Vietnamese trade office in South Africa will intensify market research through activities such as seeking information about retail groups in South Africa and concurrent countries, assisting Vietnamese businesses in joining value chains in South Africa, and developing direct relations with retail chains in South Africa.
The governments of the two countries are looking towards doubling current bilateral trade through the exchange of goods that are advantages of the two sides, for example South African coal, beef and fruit; Vietnamese rice, seafood, electronic products, computers, and construction materials.
Nguyen Hong Tien, Vietnamese Commercial Counselor in South Africa