Vietnam-South Africa Business Forum: A New Chapter in Economic Cooperation

The recent Vietnam-South Africa Business Forum held in Hanoi on October 24 was a spotlight event, marking a significant moment in the diplomatic and economic relationship between the two nations. This gathering brought together Prime Minister Pham Minh Chinh and South African President Matamela Cyril Ramaphosa, alongside a vibrant audience of ministers, government leaders, and around 200 business delegates from both countries.

A Historical Context

Since the establishment of diplomatic relations over 30 years ago, Vietnam and South Africa have nurtured their “Partnership for Cooperation and Development.” Economic and trade cooperation has become a cornerstone of this partnership. In 2024, bilateral trade reached an impressive $1.72 billion. Vietnam primarily exports electronics, phones, textiles, and agricultural products, while importing wood, minerals, and chemicals from South Africa. This balanced exchange showcases the complementary nature of their economies.

Investment Landscape

As of July 2025, South Africa has invested in 20 projects in Vietnam, contributing approximately $0.88 million, placing it at 109th among 151 countries investing in Vietnam. On the other hand, Vietnam has four investment projects in South Africa totaling $8.86 million, ranking 45th among 84 countries where Vietnam invests. This data points to a mutual willingness to explore and expand economic opportunities further.

Areas of Potential Growth

During the forum, business leaders from both nations acknowledged the vast potential still untapped in their economic relationship. Opportunities abound in sectors such as renewable energy, finance, tourism, and technology. Identifying these growth areas is vital for both nations as they plan strategic initiatives moving forward.

Institutional Collaboration

Both governments emphasized the importance of the Inter-Governmental Partnership Forum and the Vietnam-South Africa Joint Trade Committee. High on their agenda is the necessity of tackling market access-related challenges and enhancing cooperation in sectors where both countries excel, such as energy and infrastructure development.

PM Chinh’s Vision for Vietnam

In his address, Prime Minister Chinh warmly welcomed President Ramaphosa and highlighted Vietnam’s remarkable transformation over the past 80 years. He painted a picture of a nation that has evolved from a war-ravaged, agricultural society into one of the 32 largest economies globally, with a projected GDP of $510 billion by 2025. Chinh underscored Vietnam’s aspiration to achieve significant economic milestones within the next two decades.

Strategic Development Goals

Vietnam aims to pursue robust growth in the coming years, focusing on double-digit increases and leveraging both domestic and foreign resources. The government recognizes that the path to economic prosperity involves three strategic breakthroughs: enhancing institutions, infrastructure, and human resources. Emphasizing innovation and digital transformation was also a significant talking point, as Vietnam seeks to integrate modern economic strategies.

Encouraging Private Sector Collaboration

Chinh articulated a vision of shared responsibility between state and private sectors, stressing that businesses must lead in economic cooperation and investment. The approach of “state enabling, businesses pioneering” sets a collaborative tone aimed at fostering lasting and impactful partnerships.

Commitment to Stability and Growth

The Prime Minister reassured attendees of Vietnam’s commitment to creating a stable environment for investments. He highlighted the importance of a transparent legal framework and political stability, underscoring that a peaceful and innovative environment is crucial for attracting international businesses.

South Africa’s Perspective

President Ramaphosa also provided insights into the growing partnership. He emphasized that both nations serve as gateways to their respective regions—South Africa to Africa and Vietnam to Southeast Asia. This geographical advantage can serve as a powerful catalyst for bilateral trade and economic growth.

Shared Opportunities in Industry

Highlighting the potential for collaboration, Ramaphosa pointed out the complementary strengths of both countries. While Vietnam excels in sectors like electric vehicle manufacturing and digital transformation, South Africa boasts advantages in agriculture, mining, and infrastructure. This synergy creates opportunities for businesses to collaborate, particularly in clean energy and technology transfer.

Cultural and Tourism Exchange

Beyond economic cooperation, both leaders acknowledged the rich cultural heritage and natural beauty of their countries as significant assets for tourism and cultural exchange. This dimension adds another layer to their partnership, promoting mutual understanding and appreciation.

Future Directions

Looking ahead, Ramaphosa reaffirmed South Africa’s commitment to reducing trade barriers and improving legal frameworks for investment protection. He urged Vietnamese businesses to engage actively with their South African counterparts, encouraging concrete contracts and collaborative projects.

Through this forum, both nations have set the stage for an enriched economic partnership. As they embark on this journey, the focus on mutual growth, shared goals, and strategic collaboration promises to pave the way for a prosperous future.