South African food producers and exporters have been urged to consider Vietnam as the next destination for their produce to further strengthen ties between the two countries.
Deputy minister of trade, industry and competition Nomalungelo Gina said despite maize being the major export to Vietnam with 53% of the total exports, she wanted to see diversity with other crops on the list.
A long, rich history
Gina was speaking during the Vietnam-South Africa economic cooperation in witnessing the two countries’ 30 years of diplomatic relations.
“The country has identified products like citrus, apples, meat products and others as export potential to Vietnam.
“The trade between the two countries was valued at R23.8 billion in 2022 from R16 billion in 2018, so it is important to increase and diversify exports to cover more valued added items in future,” she added.
Gina said it was important that all stakeholders come to the table – from manufacturing, agro-processing, logistics, seafood, energy, and agricultural products – so that viable plans could be compiled on how best to utilise the existing platforms to increase exports.
“South Africa’s basket of imports from Vietnam is dominated by manufactured products such as telephone sets, footwear, and printing machinery.
“However, South Africa’s imports from Vietnam are a bit more diversified as compared to our exports to Vietnam. Our exports are mostly primary products like oil, seafood, fresh fruits, and nuts,” she said.
The scope is there
Gina said there was scope for South Africa to increase exports such as agro-processing and automotive components. That would ensure that the economy of the two countries grows and more sustainable jobs are created.
“There is a need to diversify South Africa’s export basket and shape the massive trade deficit. Both countries need to make concerted efforts to increase South Africa’s value-added products to Vietnam,” she said.
Gina encouraged Vietnamese business people to explore investment opportunities in South Africa and South Africa’s producers to also look into spreading their wings to Vietnam.
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