Vietnam - South Africa trade to reach nearly 1.8 billion USD by 2024

Vietnam-South Africa trade by 2024 is expected to reach nearly 1.8 billion USD, consolidating South Africa's position as Vietnam's second largest trading partner in Africa. In the first 8 months of the year, Vietnam's exports to South Africa reached 566.9 million USD, up 5% over the same period, with key products including phones and components, footwear, computers and electronic products.

Trade developments and commodity structure

At the Vietnam - South Africa Business Forum on October 24, delegates said that bilateral trade turnover in 2024 will approach 1.8 billion USD. Vietnam's exports to South Africa in the first 8 months reached 566.9 million USD, up 5% over the same period, of which:

Indicators	Value	Note
Bilateral trade (2024)	Nearly 1.8 billion USD	South Africa is Vietnam's second largest partner in Africa.
Vietnam's 8-month exports to South Africa	566.9 million USD	Up 5% year-on-year
Phones and accessories	202 million USD	Main export products
Shoes	79 million USD	Main export products
Computers, electronic products and components	63 million USD	Main export products

Impact factors: policy and supply-demand dynamics

President of the Republic of South Africa Cyril Ramaphosa said he had discussed with Vietnamese leaders to promote economic , trade and investment cooperation, emphasizing that "the relationship between the two countries is not only an economic transaction but also a bridge of solidarity, trust and long-term development". He affirmed that the South African Government will reduce trade barriers and improve the legal framework for investment protection.

In terms of supply and demand structure, Vietnam has strengths in electric vehicles, batteries, renewable energy, digital transformation, electronics, textiles, agriculture and aquaculture (rice, coffee, seafood). South Africa has advantages in fruits, wine, livestock, aquaculture, mining, automobile manufacturing and infrastructure. The two sides agreed to promote technology transfer, build supply chains and expand cooperation to new areas such as clean energy transition, education and training, science and technology, innovation, digital transformation and tourism.

Compare history and position

With a turnover of nearly 1.8 billion USD in 2024, South Africa continues to be an important African market for Vietnam, after Egypt. In the first 8 months, exports increased by 5%, showing the recovery of demand in South Africa in the electronics and footwear groups, in the context of the global supply chain gradually stabilizing.

At the fundamental level, in the 2021-2025 period, Vietnam attracted about 185 billion USD in FDI, ranking among the 15 developing countries with the largest FDI attraction; FTSE Russell upgraded Vietnam's stock market to "secondary emerging" in early October. Assessments by the IMF and Standard Chartered both noted Vietnam's positive growth prospects. These factors create a foundation to support two-way capital flows and trade.

Prospects and trends

In the short term, Vietnam-South Africa trade could continue to benefit from South Africa’s commitment to reduce trade barriers and promotion efforts from both sides. In the medium term, delegates supported Vietnam’s early initiation of FTA negotiations with the Southern African Customs Union (SACU); if the promotion process goes smoothly, reduced tariffs would be a catalyst for key commodity groups and encourage two-way supply chain investment.

Prime Minister Pham Minh Chinh affirmed that Vietnam ensures macroeconomic stability and protects the legitimate rights of investors, which is an important policy signal for the plan to expand the presence of South African businesses in Vietnam and vice versa.

Industry Impact

Electronics, telephones: Demand in South Africa is the driving force behind exports; opportunities to expand into components, digital equipment.
Textiles, footwear: Benefit from competitive costs and ability to meet large orders; FTA (if any) can increase profit margins.
Agriculture and fisheries: Vietnam has strengths in rice, coffee, and seafood; South Africa has strengths in fruits, wine, and livestock, opening up seasonal complementary exchanges.
Renewable energy, digital transformation, electric vehicles and batteries: Listed as priority areas of cooperation, with potential for forming supply chain linkage projects.
Mining, automobile manufacturing, infrastructure: South Africa's advantages create opportunities to link inputs/raw materials for production in Vietnam.

Risk and monitoring

Investors and businesses need to monitor the progress of the Vietnam-SACU FTA, South Africa’s trade barrier adjustments, as well as the recovery of consumption in this market. The process of improving procedures and connecting supply chains across the region is a key variable for the trade growth trajectory.