In their strategy of diversifying supply chains and expanding into international markets, industrial enterprises are no longer seeking only individual trade contracts but are instead aiming to build in-depth cooperative networks. The business trip of the Vietnam Chemical Corporation (Vinachem), led by Chairman of the Board of Members Phung Quang Hiep, to the Republic of South Africa from June 22-26, 2026, demonstrates this approach through a work program prepared with multiple layers of objectives, from raw material sourcing and markets to establishing a foundation for industry cooperation.
Choosing South Africa - a strategic choice.
South Africa is Africa's most industrialized economy and a regional hub for mining, chemicals, and logistics. It also serves as a gateway to the African market, which has a growing demand for fertilizers, industrial chemicals, and agricultural supplies.
The choice of South Africa, therefore, is not simply about opening up another export market, but reflects a strategic approach to accessing manufacturing and trading centers that can be deeply integrated into regional supply chains.
A program designed along the value chain.
Unlike many trade promotion programs that focus solely on business networking, Vinachem's work schedule in South Africa is structured around three overarching objectives: securing production resources through meetings with mining companies; expanding markets and distribution systems through business networking forums; and establishing long-term cooperation mechanisms by connecting with representative organizations of the South African chemical industry.
The participation of leaders from member enterprises such as Lam Thao Superphosphate and Chemicals, DAP - Vinachem, Southern Fertilizer, Vietnam Apatite, LIX, and Casumina shows that the program is implemented according to an ecosystem model, creating conditions for each unit to directly access partners suitable for its production sector.
From raw materials to self-sufficiency
In this program, Vinachem chose to work with Kropz - one of the largest phosphate mining companies in the region, owning the Elandsfontein mine (South Africa) and the Hinda project (Congo), demonstrating the Group's priority in proactively diversifying its raw material sources.
The discussions focused on ore quality, mining capacity, logistics, and the ability to supply Vinachem's fertilizer plants on a long-term basis. According to sources from the working program, both sides aim to promote commercial contracts in the near future if the technical and economic conditions meet the requirements.
In the context of a volatile global raw material supply chain, direct access to major suppliers shows that Vinachem is shifting from a short-term purchasing mindset to proactively building a stable supply source to serve long-term production.
Connecting markets with the power of the entire ecosystem.
If Kropz represents the input problem, then the activities in Cape Town and Johannesburg are geared towards the output of the value chain.
In Cape Town, Vinachem participated in a networking program organized by Accelerate Cape Town, attended by representatives from the city government and businesses operating in the fields of industrial chemicals, agricultural supplies, logistics, packaging, processing, and international trade. Instead of simply showcasing individual products, the delegation presented Vinachem's entire production ecosystem, from fertilizers, basic chemicals, and consumer chemicals to batteries and technical rubber.
Following this, in Johannesburg, the Vietnam-South Africa Business Networking Forum, co-organized by the Vietnamese Embassy in South Africa and Vinachem, brought together South African businesses and investors, along with the participation of the South African Chamber of Commerce and Industry (SACCI) and the Chemical Industries Association of South Africa (CAIA). After the forum, businesses from both sides participated in B2B working sessions to directly exchange information on trade and investment cooperation opportunities.
Establishing a platform for industry collaboration.
One of the highlights of the trip was the signing of a Memorandum of Understanding on cooperation between Vinachem and CAIA.
Unlike typical trade agreements, this MOU aims to establish a long-term cooperation mechanism in the fields of chemicals, fertilizers, rubber, batteries, logistics, chemical safety standards, technology exchange, and sustainable development. Direct connection with the representative organization of the South African chemical industry expands the potential for cooperation not only between the two organizations but also between member businesses from both sides.
It's not just a trade promotion trip.
Overall, the working program in South Africa shows that Vinachem is not approaching the market on a case-by-case basis, but is gradually building a long-term presence in the region. The exploration of the possibility of opening a representative office in South Africa to support logistics, connect with partners, and develop the market is an indication that this direction will not stop at the current trip.
From a broader perspective, the series of activities in South Africa reflects a shift in the integration mindset of leading Vietnamese chemical companies: from expanding exports to participating more deeply in the global value chain, from seeking business opportunities to building strategic cooperation networks. This is also a direction consistent with the goal of enhancing self-reliance, diversifying markets, and increasing the position of Vietnam's chemical industry in the process of international integration.
Source: https://congluan.vn/vinachem-mo-rong-khong-gian-phat-trien-tu-nam-phi-post351320.html
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