New agreement strengthens trade ties with Vietnam

NOMPELO NDZIMELA LAST WEEK saw the launch of a Joint Trade Committee by South Africa and Vietnam designed to strengthen bilateral trade between the two countries and resolve specific market issues that may arise. This follows the signing of a trade agreement in 2000. Vietnam is South Africa’s fifth largest trading partner in ASEAN while South Africa is Vietnam’s largest trading partner in Africa. Bilateral trade between the two countries has increased from R29 million in 1993 to R785 million in 2003. Of this R785 million, approximately R559 million comprises South African exports to Vietnam. These are primarily base metals and account for 88.6% of total exports. South Africa’s biggest imports from Vietnam are footwear, textiles and textile products, although these imports have declined since 2002. ”In addition to growing the volume of trade, the challenge is to change the structure of trade to ensure greater diversity in traded products and services, which should more effectively reflect the capacities of the two economies,” deputy minister of trade and industry, Lindiwe Hendricks, said at the signing. She also offered South Africa’s support to Vietnam’s efforts to join the WTO.