Vietnamese goods seek to make inroads into South African market

South Africa represents Vietnam’s largest trading partner in Africa. South African businesses consider Vietnam as a potential market, with plenty of room to grow trade and investment co-operation in areas of both sides’ strength.

During a meeting held with the leadership of the Cape Chamber of Commerce and Industry in mid-February, Ambassador Loi proposed that the Chamber work closely alongside the Embassy to support Vietnamese businesses to find reputable partners in Cape Town.

The two sides are set to jointly organise an online B2B business forum between Vietnamese and South African businesses in May. The event is expected to attract the participation of businesses specialising in the fields of furniture processing, farm produce processing, fresh fruit processing, coffee growing and processing, and ceramic making.

Ambassador Loi also held a working session with managers of Khanh Viet Trading Cc Company in Cape Town, a private overseas Vietnamese enterprise that has engaged in import-export activities in the South African market over the past 12 years.

Currently, Khanh Viet only imports Vietnamese products, including rice, instant noodles, fish sauce, dry noodles, coffee, outdoor ceramics, interior, and exterior furniture.

At present, the products exported to this market remain limited. Yet, South Africa continues to represent a gateway for international exchanges, creating favourable opportunities in which the country can expand its co-operation with African countries in all fields, especially countries in the south of the continent.

The retail system is undergoing strong development in South Africa, a market made up of almost 60 million consumers, as well as in other neighbouring countries such as Mozambique, Botswana, Eswatini, Zimbabwe, Namibia, and Lesotho.

Despite enduring the negative impact caused by the COVID-19 pandemic, trade turnover between the two countries last year fetched roughly US$1.3 billion, of which Vietnamese export turnover rose by 24.3% annually to US$847 million, while its import value fell by nearly 40% to US$426.5 million.

Some of the items to record high export value include mobile phones, electronic equipment, computers, shoes, and textiles. Farm products such as coffee, pepper, and rice are also favourites among local people.

South African consumers have gained a greater understanding of Vietnam through tourism channels, which presents an advantage for Vietnamese products as they seek to make inroads into the South African market. In addition, South Africa’s climate and soil are unsuitable for rice cultivation, therefore Vietnamese rice products also have a foothold in this market.

However, the Vietnamese community residing in South Africa remains rather small, making it difficult for businesses to promote their products there. Along with this, Vietnamese goods also have to compete with similar products imported from China and Thailand as they vie for the lion’s share of the market.

Both countries are set to organise the fifth meeting of the Inter-Governmental Partnership Forum this year. Candith Mashego-Dlamini, deputy minister of the South Africa Department of International Relations and Cooperation, suggested that the two sides focus on agreeing to specific measures and initiatives aimed at further deepening bilateral ties. Priority will be given to expanding economic-trade co-operation in the fields of their respective strengths, such as agriculture, mining, aquatic farming, supporting industries for auto manufacturing, tourism, and education.

Moving forward, the Vietnam Trade Office in South Africa will co-ordinate efforts with Khanh Viet Company to promote Vietnamese ceramic and coffee products to the South African market, as well as to neighbouring countries.