By Dikeledi Molobela
Hanoi, Vietnam - President Cyril Ramaphosa says South Africa and Vietnam must move beyond trading in raw materials and build a partnership rooted in value addition, industrial collaboration and shared prosperity.
Speaking at the South Africa–Vietnam Business Forum in Hanoi during his State Visit on Friday, President Ramaphosa said that while trade between the two countries has grown significantly, the balance remains tilted against South Africa.
“South Africa runs a sizable trade deficit with Vietnam. We import significantly more than we export. Between 2023 and 2024, we had a trade deficit of 30%.
“South Africa largely exports raw commodities – minerals, ores, fuels and agricultural products – while Vietnam exports manufactured goods of higher value. This imbalance calls us to move beyond the traditional trade in raw materials. We need to work toward greater value addition, diversification and industrial collaboration. This challenge is our greatest opportunity,” the President said.
The President said both nations stand to gain from combining their respective strengths.
“South Africa has much to offer Vietnam – a rich resource base, advanced mining expertise, a robust agricultural sector and a growing manufacturing capability. Vietnam, in turn, brings extraordinary strengths in electronics, textiles, machinery and renewable energy technologies.
“Together, we can build supply chains that are not only profitable, but resilient, sustainable and future-focused,” he said.
President Ramaphosa called for increased investments, noting that there are currently no Vietnamese investments in South Africa.
“There are a number of financial and non-financial support measures available for Vietnamese companies that may be keen to invest in South Africa to diversify their supply chains,” he said.
Highlighting the vast investment opportunities, he said South Africa’s potential lies in “agriculture, agro-processing, mining and mineral beneficiation, manufacturing, advanced manufacturing and services”.
The President urged business leaders from both countries to seize the opportunity to shape a shared vision of cooperation.
“This Business Forum is about shaping a shared vision of cooperation between South Africa and Vietnam – a vision that reflects our mutual aspirations for prosperity, sustainability and human development,” he said.
He described South Africa and Vietnam as “innate partners”, with histories of resilience and shared values.
“Both of our countries have demonstrated remarkable determination in overcoming adversity and in building societies that stand proud on the global stage. This shared experience reminds us that economic cooperation is not simply about transactions. It is about building bridges of solidarity, trust and long-term prosperity,” the President said.
The President highlighted that the recent US tariff decisions have tested the resilience of many countries.
In response to these tariffs, he said the South African government has swiftly activated strategies to diversify its export markets.
“We have re-established trade offices and assistance desks, with our Asian trading partners as a central pillar in our outreach,” he said.
President Ramaphosa said the future of the partnership lies in collaboration across strategic and emerging sectors, including electric vehicles, battery manufacturing, renewable energy, agro-processing and digital innovation.
“By combining South Africa’s natural advantages with Vietnam’s manufacturing dynamism, we can create industries that generate jobs, drive exports and strengthen both our nations’ positions in the global economy,” he said.
Underscoring the geographic advantage of both countries, the President said South Africa serves as a gateway to Africa through the African Continental Free Trade Area (AfCFTA), while Vietnam is a vital hub in the fast-growing ASEAN [Association of Southeast Asian Nations] region.
“Together, our two countries can serve as vital bridges between Africa and Asia, connecting supply chains, enhancing trade flows and creating new pathways for investment."
President Ramaphosa also pointed to opportunities in education, tourism and clean energy, saying collaboration in these areas would deepen people-to-people ties and drive inclusive development.
“The future belongs to our youth. Partnerships in education, training, research and innovation can empower the next generation to drive inclusive and sustainable growth,” he said.
President Ramaphosa concluded by reaffirming South Africa’s commitment to a long-term, mutually beneficial relationship with Vietnam.
“We reaffirm our unwavering commitment to work hand in hand with our Vietnamese counterparts, our business leaders and our people to ensure that the potential of this partnership is fully realised. Together, let us move forward from friendship to partnership to shared prosperity,” he said. - SAnews.gov.za
