South Africa is one of the key export markets of Viet Nam in Africa, with export revenue of $765 million last year.— Photo canthotv

HCM CITY (Biz Hub) — There is huge potential for co-operation in sectors such as mining, agriculture produce processing and the garment and textile industy between Viet Nam and South Africa, delegates said at a seminar yesterday in HCM City.

Attending the forum were government officials, representatives of local firms and a delegation of sixteen South African enterprises seeking business opportunities in Viet Nam.

Vo Tan Thanh, director of the Viet Nam Chamber of Commerce and Industry in HCM City, said that although trade between Viet Nam and South Africa was still modest, it had expanded in recent years, reaching US$920 million last year, a year-on-year increase of 27 per cent.

South Africa is one of the key export markets of Viet Nam in Africa, with export revenue of $765 million last year, he said.

Talking about investment, he said, investment in each others countries remained modest.

Up until now, South African firms have invested in three projects in Viet Nam with a total registered capital of $180,000.

Vietnamese companies like Vietranimex, Truong Thanh Furniture Corporation and the Ha Noi Trade Corporation just invested in projects to build bonded warehouses in South Africa.

Kenneth Malatsi, representative of the South African Ministry of Industry and Trade, said by implementing activities, South Africa wants to expand investment and trade ties as well as to narrow its trade deficit with Viet Nam.

Situated at the southernmost tip of the African continent, South Africa is the gateway to a continent of 200 million people for Vietnamese goods, he said.

Its stable economic growth, abundance of natural resources and modern infrastructure, plus investment incentives offered by the government, means South Africa offers good business opportunities for Vietnamese investors in many sectors, including mining, agro-processing, tourism, textile, pulp, paper, furniture, IT, automotive and green economy industries, he said.

South African firms participating in trips to Viet Nam, who are active in wine, chemicals, safety equipment, information and communication technology, mining, military equipments and others, are looking to form partnerships with Vietnamese companies such as creating joint venture companies, that go beyond standard buying and selling relationships, he said.

Kgomotso Magau, the South African Ambassador in Viet Nam, said being a major exporter of mineral-based commodities, South Africa can meet Viet Nam's industrial sector's demand.

"We have noted a strong growth of domestic consumption fuelled by increasing income levels, not only in South Africa, Viet Nam and Africa in general, presents an upwards demand for our products," she said.

Do Thi Kim Lien, the South African Honorary Consul in HCM City, encouraged businesses in the two countries to be more active in learning about each other's markets.

The consulate pledges to offer maximum support to Vietnamese firms, who want to seek investment opportunities in South Africa, said Lien. — VNS