With market diversification a top priority in light of the Trump administration’s punishing tariffs, a recent state visit to Vietnam should open doors to deepening trade, amongst other issues.
South Africa is on a path of export diversification, and positioning the country in the minds of political leadership in various countries is crucial, says agricultural economist Wandile Sihlobo.
“What will need to follow these visits are technical engagements, particularly to widen exports of different sectors of our economy. The Department of Trade, Industry and Competition, along with the Department of International Relations and Cooperation, should lead such engagements,” he says.
“Indeed, South Africa’s Department of Agriculture should also take a keen interest in these engagements. Vietnam is a market we keep on our radar in agriculture. The country spends over $30 billion on agricultural imports annually.”
But South Africa is ranked 34th among agricultural suppliers to Vietnam.
“Consider 2024, Vietnam imported $34bn worth of agricultural products. South Africa accounted for only 0.3% of these imports (about $89 million). The key suppliers of agricultural products to Vietnam were China, Brazil, the United States, Argentina, Cambodia, Australia, India and Indonesia, collectively accounting for 70% of the country’s agricultural imports.”
Vietnam mainly imports maize, nuts, cotton, soybean oilcake, wheat, rice, soybean, beef and palm oil. South Africa already exports maize, apples and pears, table grapes, nuts and cotton to the country.
Sihlobo points out that some of these products face some duties, albeit at MFN levels that are reasonably low. “For example, South African apples, pears and table grapes face an 8% duty in Vietnam. If the duties were even lower, South Africa’s penetration into the Vietnamese market would be even more significant than it is now.”
In addition to these products, South Africa also exports a range of fruits, wine, red meat, grains and other products.
“Thus, state visits, such as the one in Vietnam, coupled with the recent trip to Indonesia and the upcoming trip to Malaysia, must always place a strong focus on trade in the agricultural sector.”
