Vietnam, South Africa seek to unlock economic potential

South African businesses regard Vietnam as a key market and an ideal “springboard” for expanding exports and gaining access to the broader ASEAN market.

National Assembly Vice President Nguyen Hong Dien directly answers questions from South African businesses on administrative reform and Vietnam’s investment environment. (Photo: VNA)
National Assembly Vice President Nguyen Hong Dien directly answers questions from South African businesses on administrative reform and Vietnam’s investment environment. (Photo: VNA)

Hanoi (VNA) –– Vietnam and South Africa are looking to tap greater potential in trade and investment, with their complementary strengths opening opportunities in manufacturing, technology, energy, agriculture and mineral processing.

The prospect was highlighted at the Vietnam-South Africa Business Forum held in Cape Town on October 2 during National Assembly Vice President Nguyen Hong Dien’s official visit to South Africa.

The forum, organised in coordination with Wesgro - the Western Cape’s tourism, trade and investment promotion agency, brought together officials and businesses to discuss ways to expand bilateral economic ties.

Dien said South Africa, one of Africa’s major economies, has strengths in natural resources, industry, finance and infrastructure and serves as a gateway to the continental market. Vietnam, meanwhile, boasts advantages in manufacturing, agriculture, electronics, technology and international trade and serves as a gateway to ASEAN.

Bilateral trade reached 1.3 billion USD in 2025 and topped 1.7 billion USD in the first seven months of 2026, up 45% year-on-year. South Africa is now Vietnam’s second-largest trading partner and largest export market in Africa, while Vietnam ranks fifth among South Africa’s trading partners in ASEAN.

The Vietnamese official said the figures were encouraging but remained below the two countries’ potential. He called for greater investment cooperation in high-value sectors, including processing and manufacturing, digital transformation, artificial intelligence, green economy, renewable energy, mineral processing, high-tech agriculture and supporting industries.

These areas are also among the priorities under the Vietnam-South Africa Strategic Partnership, he noted.

He affirmed that the Vietnamese National Assembly and Government are ready to work with their South African counterparts to facilitate business cooperation. Vietnam will continue improving its investment environment and creating favourable conditions for South African businesses in line with Vietnamese law.

He also called on South African authorities to provide similar support for Vietnamese businesses seeking investment and business opportunities in the country.

JP Van der Merwe, Wesgro’s Deputy Director-General for Investment, said Western Cape, with a population of 7.6 million, has an export-oriented economy in which services account for about 70%. The province has attracted growing foreign investment, particularly in software and information technology, and is increasingly seeking investment from Asian markets.

Western Cape currently imports large volumes of Vietnamese electronics, textiles and garments, footwear, chemicals and medical equipment. Its major exports to Vietnam include maize, fruit and flowers, as well as industrial products such as boats and yachts

JP Van der Merwe, in an interview with Vietnam News Agency correspondents in South Africa, said that alongside its traditional strengths in agriculture and food, Vietnam’s manufacturing sector is attracting growing attention. Although the number of South African companies investing in Vietnam remains modest, their increasing interest in expanding into the ASEAN market is expected to open up new opportunities.

He highlighted Vietnam’s clear competitive advantages, including its market of 100 million people and impressive economic growth, which has averaged more than 6% over the past five years and reached around 8% last year. South African businesses regard Vietnam as a key market and an ideal “springboard” for expanding exports and gaining access to the broader ASEAN market.

At the forum, Director General of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade Vu Ba Phu introduced Vietnam’s investment environment and said the ministry is ready to help connect businesses from the two countries. He encouraged South African companies and trade associations to engage more actively in business-to-business activities and build long-term partnerships in Vietnam.

The forum also provided a venue for businesses to discuss administrative reforms, investment opportunities, potential direct air services between Vietnam and South Africa, and cooperation in mining and metallurgy.

Before leaving South Africa for Tanzania to attend the 153rd Assembly of the Inter-Parliamentary Union, Vice President Dien met with representatives of the Vietnamese community in Western Cape./.

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VNA

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