Vietnam Economic News’ Truong Thu Hien spoke with Vietnamese Ambassador to South Africa Le Huy Hoang.
Vietnam considers African countries as important partners in all fields, and South Africa in particular as a business gateway to the continent. What is the current potential of South Africa?
South Africa is the fastest developing country in Africa. With a population of nearly 50 million, the country exports approximately US$100 billion worth of products and spends over US$100 billion on imports annually. Like other African countries, South Africa exports many kinds of valuable materials for industrial production and export processing, such as minerals, chemicals, wood, and cotton. Also, it imports many goods produced in Vietnam, including rice, rubber, coffee, pepper, and cashew nuts.
South Africa borders the sea and therefore has favorable conditions to support its fishing industry. Exporting seafood is one of South Africa’s chief advantages. In 2013, the country exported 22,600 tonnes of fish fillets worth US$112 million.
While many other African nations have to contend with both ethnic and religious conflicts, political instability, epidemics, hunger, poverty and backwardness, South Africa enjoys stability. Therefore, South African businesses play a decisive role in the markets of most African countries, especially those located in the southern part of the continent.
Could you briefly describe the results of trade between Vietnam and South Africa in 2014?
In 2014, the total value of trade between Vietnam and South Africa reached an estimated US$962 million, a rise of 4.6 percent compared with 2013. This included US$815 million worth of Vietnamese exports to South Africa, up 6.5 percent compared to 2013, and equal to 91 percent of the target set for 2014. Las year also saw US$147 million worth of Vietnamese imports from South Africa, down five percent compared with 2013 due to a 38 percent decrease in scrap imports (scraps were a major kind of Vietnamese imports from South Africa).
In 2014, the value of some Vietnamese exports to South Africa continued to increase. For example, coffee was up 71 percent, while computers, electronic products, and components rose by 26 percent. The South African market has a high demand for products imported from Vietnam.
What did the Vietnamese Embassy in South Africa do in 2014 to promote the presence of Vietnamese brands in this market?
In 2014, the Commercial Section of the embassy introduced 25 import-export companies from the two countries to one another. In addition, they built a Vietnamese pavilion to present Vietnam’s economic and commercial potential as well as Vietnamese products.
The Commercial Section also organized a fair aimed at popularizing Vietnamese rice, attracting the attention of South African businesses and visitors. Through the fair, six South African companies requested the Vietnamese side to send them sample products and offers. For example, Megacorp Trading C.c. have expressed an interest in signing a long-term contract to buy 250 tonnes of parboiled rice and 100 tonnes of long-grain white rice per month.
An event was successfully organized at the Saigon Restaurant in Johannesburg on May 22 to popularize Vietnamese Tra fish. Following the event, the restaurant has added to its menu many dishes made from Tra fish attracting South African customers.
On July 25, a Vietnam-South Africa trade promotion workshop was organized with the participation of nearly 50 South African businesses, 20 Vietnamese businesses, and some overseas Vietnamese companies in South Africa. Through the workshop, most Vietnamese businesses found partners for their export products.
On August 26, in Pretoria – the capital of South Africa – the embassy held a reception to celebrate the 69th anniversary of Vietnam’s National Day with 400 important guests from diplomatic missions of different countries. At the reception, many dishes made from Vietnamese rice and Tra fish were prepared on site to serve guests. A recent ceremony celebrating the 70th anniversary of the People’s Army of Vietnam also gave us a chance to introduce Vietnamese instant coffee.
On September 11, a forum in Johannesburg promoting investment into Vinh Phuc Province drew the participation of nearly 100 South African investors and businesses.
Finally, on October 31, a Vietnam-South Africa trade, investment, and tourism promotion forum successfully took place in Durban, and was attended by more than 80 businesses based in the city.
What do you think must be done to effectively promote Vietnam’s trade with Africa and South Africa in particular?
The African market, and South Africa in particular, hold potential, but also present many challenges. Most African countries are underdeveloped in all aspects, including trade. Political instability has hindered the exchange of information, market surveys and international payments. Weaknesses in the legal environment have led to fraudulent trade.
In such circumstances, our Commercial Section must organize trade promotion activities independently as a professional event organizer.
In fact, the funds for activities to promote trade with markets which bring Vietnam high export value are higher than the funds for activities aimed at promoting trade with markets which bring lower export value. Associations and sectors also pay greater attention to organizing trade promotion activities in markets which bring high export value. Meanwhile, markets which bring lower export value really need trade promotion activities and the participation of associations and sectors. While these markets cannot attract businesses through profitability, the state, as well as relevant associations and sectors, should bring into play their role as public service providers to ensure the interests of entire society and the national interest.
(Souce VEN)