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 AfricaVietnam 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.