Ramaphosa urges SA–Vietnam industrial cooperation to shift from raw exports

During his State Visit to the Socialist Republic of Vietnam, Cyril Ramaphosa addressed the South Africa–Vietnam Business Forum in Hanoi, calling for a transformation of bilateral trade from raw-material exports to deep industrial collaboration, value-addition and shared prosperity.

Trade imbalance and the case for value addition

President Ramaphosa noted that while South Africa and Vietnam have significantly expanded bilateral trade, the structure remains heavily skewed in favour of Vietnam: South Africa exports largely raw commodities—minerals, ores, fuels and agricultural products—while Vietnam exports higher-value manufactured goods. He flagged a trade deficit of around 30 % between 2023 and 2024 and said this imbalance underscores the urgent need to move beyond traditional trading models. He emphasised that the challenge of re-balancing the relationship is also "our greatest opportunity" to upgrade South Africa's export base, enter global value chains and partner with Vietnam in manufacturing, technology and services.

Complementary strengths and sectors for collaboration

Ramaphosa outlined how each country brings distinct advantages that can be leveraged jointly:

• South Africa: rich natural resources, mining expertise, a sizable agricultural base, burgeoning manufacturing capabilities.

• Vietnam: proven strengths in textiles, electronics, machinery, renewable-energy technologies, agile manufacturing systems. He proposed building integrated supply chains that tap each country's comparative-advantage—so South Africa can shift away from simply exporting raw materials, and Vietnam (and South African firms) can engage in downstream processing, manufacturing and export-oriented production. He pointed to specific sectors for cooperation: electric vehicles and batteries, renewable energy equipment, agro-processing, mineral beneficiation, advanced manufacturing, digital innovation and services.

Investment, strategic positioning and regional connectivity

The President highlighted that despite the trade relationship, there are currently no recorded Vietnamese investments in South Africa—something he said is "a gap that must be filled." He invited Vietnamese businesses to invest in South Africa and explained that the South African government offers financial and non-financial incentives to facilitate supply-chain diversification and foreign-investment flows. He also underscored South Africa's strategic advantage as a gateway into Africa via the African Continental Free Trade Area (AfCFTA), while Vietnam serves as a hub in the fast-growing Association of Southeast Asian Nations (ASEAN) region. He framed the South Africa–Vietnam partnership as a bridge between Africa and Asia, capable of channeling trade, investment and value-chains across continents.

Youth, education, tourism and shared prosperity

In a broader vision, Ramaphosa emphasised that economic cooperation must go beyond trade and investment: "This Business Forum is about shaping a shared vision of cooperation … that reflects our mutual aspirations for prosperity, sustainability and human development." He flagged education, training, research and innovation as critical complements, especially for empowering youth. He also highlighted tourism and people-to-people links as important soft-pillars of bilateral engagement.

Looking ahead

The President signalled that the South Africa–Vietnam relationship is entering a strategic phase: the elevation of the bilateral relationship to a "Strategic Partnership" status was referenced in media briefings ahead of the visit. (Government of South Africa) He encouraged business leaders on both sides to act swiftly: to identify investment-opportunities, joint ventures, manufacturing collaborations and supply-chain linkages that reflect long-term, not transactional, approaches.

Why this matters for South Africa

• Diversifying export-markets and moving up the value-chain supports South Africa's industrialisation, job creation and export-growth strategies.

• Partnering with a dynamic Southeast Asian economy such as Vietnam helps reduce reliance on traditional Western markets and builds resilience amid global trade uncertainties.

• The AfCFTA offers South Africa a broader continental market; linking that to ASEAN via Vietnam adds a global dimension.

• Value addition, manufacturing and services represent higher-skill, higher-wage opportunities compared with raw-commodity exports.

Final word

President Ramaphosa's remarks in Hanoi underline that South Africa's engagement with Vietnam is more than diplomatic fanfare: it is a strategic push towards reinventing trade, investment and industrial policy in an era of global supply-chain realignment. By pairing South Africa's resource-base and Africa-gateway status with Vietnam's manufacturing agility and Asian regional access, the two countries can build a partnership founded on value, not simply volume; on manufacturing, not merely extraction; and on shared prosperity, not unbalanced exchange.