Vietnam seeks export opportunities to Africa as risks increase in traditional markets

Faced with unpredictable fluctuations in key export markets such as China, Europe and the US, Vietnam is making efforts to shift its search and expand its market to Africa - a region considered to have great potential, few technical barriers and an increasing demand for many types of Vietnamese goods.

Container loading and unloading at Saigon New Port.

Promoting trade with African countries

In recent times, Vietnam has continuously carried out many high-level diplomatic activities with African countries. Notably, the official visits to Senegal and Morocco by Vietnamese National Assembly Chairman Tran Thanh Man as well as the recent visits to Côte d'Ivoire and South Africa by National Assembly Vice Chairman Vu Hong Thanh. Diplomatic activities accompanied by promoting foreign trade are opening a new phase in economic and trade cooperation between Vietnam and the African region.

During the working trips, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan held bilateral meetings with many important ministries and sectors of Senegal and Morocco. The meetings focused on areas with high potential for cooperation such as agriculture, processing industry and import and export of essential goods. In particular, the policy and law discussion between the two countries, co-chaired by the Vice Chairman of the National Assembly, attracted widespread attention from businesses, opening up many opportunities to access market information and establish partnerships.

According to the representative of the Ministry of Industry and Trade, these business trips not only demonstrate strong political commitment from Vietnam but are also concrete steps to realize economic cooperation projects with Africa approved by the Vietnamese Government.

Africa – a market with wide open potential

Africa currently has a population of over 1.4 billion people, forecast to exceed 2.5 billion by 2050. It is one of the fastest growing regions in the world, with a growing middle class.

According to statistics, by 2024, Vietnam's export turnover to Africa will reach about 4 billion USD and its import turnover from this region will be about 5.5 billion USD. However, the turnover with many countries in the region is still modest. For example, Senegal, an important partner in West Africa, currently accounts for only nearly 1% of total two-way trade with Africa, showing that there is still a lot of room for cooperation.

African countries have a great demand for agricultural products, food, essential consumer goods, machinery and equipment for agricultural production, construction materials, etc. - areas in which Vietnam has strengths.

Advantages of Vietnamese goods

Vietnam is the world's leading exporter of rice, coffee, pepper, cashew nuts and seafood. In 2024, Vietnam's agricultural trade surplus will reach nearly 18 billion USD. Vietnamese rice is present in more than 150 countries and territories. In addition, Vietnam's processing, textile, electronics and household goods industries are also developing strongly, capable of supplying a variety of goods with increasingly high quality.

Economists say Africa is a market with growing purchasing power, high profit margins and does not impose strict technical barriers like the European Union (EU). This is a great opportunity for Vietnamese goods, especially in the context of many fluctuations in traditional markets.

Dr. Phan Chi Hieu, President of the Vietnam Academy of Social Sciences, emphasized that when the African Continental Free Trade Agreement (AfCFTA) is fully implemented, Vietnam will have a great opportunity to boost exports to this region, because goods between the two sides are highly complementary and do not compete directly.

Vietnamese Trade Counselors in several African countries said that consumers there highly appreciate the quality and price of Vietnamese goods, especially products of natural origin, environmentally friendly, meeting basic standards and suitable for consumer needs in the region.

According to Mr. Hoang Duc Nhuan, Commercial Counselor in Algeria, North African countries such as Algeria and Tunisia have a large demand for importing Vietnam's key agricultural and aquatic products such as raw coffee, pepper, cashew nuts, coconut rice, tra fish, basa fish, frozen shrimp, etc., while some West African countries such as Senegal need to buy more rice, pepper, confectionery and cereal products.

During the official visit to Senegal by National Assembly Chairman Tran Thanh Man from July 22-24, 2025, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan signed a Memorandum of Understanding on rice trade with Senegalese Minister of Industry and Trade Serigne Gueye Diop, according to which Vietnam will supply 100,000 tons of rice to this West African country each year. The signing of the MOU on rice trade with Senegal is of great significance, contributing to ensuring food security, stabilizing the rice market, minimizing the negative impacts of climate change and natural disasters in Senegal. At the same time, this cooperation agreement also aims to strengthen the good economic and trade relations between the two countries; contribute to diversifying rice export markets; and find more outlets for the rice industry and Vietnamese farmers.

Barriers to consider

However, conquering the African market is not easy. Long distance, high transportation costs, lack of market information and incomplete legal framework are major barriers for Vietnamese enterprises.

In addition, the unstable international payment situation, weak logistics infrastructure, and especially political risks in some countries are also factors that businesses need to carefully calculate.

A representative of the Department of Foreign Market Development (Ministry of Industry and Trade) recommended that Vietnam should develop a focused market access strategy, combining trade promotion, brand promotion and strengthening diplomatic and commercial presence in this region. At the same time, industry associations and businesses should proactively participate in fairs and exhibitions, establish distribution channels and seek long-term partners locally.

Strengthening connectivity towards sustainable development

To support businesses, the Vietnamese Government is promoting negotiations and signing of trade and investment agreements, double taxation avoidance, investment protection, etc. to create a solid legal foundation for bilateral cooperation. At the same time, cooperation projects issued by the Ministry of Industry and Trade such as "Strengthening trade relations with the African Union in the 2022-2025 period", "Promoting trade exchange of some key import and export products between Vietnam and key markets in Africa in the 2024-2026 period" or "Developing relations between Vietnam - Middle East - Africa" are also being implemented in substance.

Vietnam also welcomes African business delegations, especially from Senegal, Morocco, Nigeria... to Vietnam to attend major fairs such as Vietnam Expo, Vietnam Foodexpo, Vietnam International Sourcing... to enhance business exchanges and seek practical cooperation opportunities.

In the context of traditional markets such as the US, Europe, and China facing increasing barriers – from tariffs, technical barriers to declining demand – moving towards Africa is a strategic move, in line with the trend of diversifying markets and global supply chains.

Expectations from the business community

Currently, many Vietnamese enterprises have begun to exploit the African market. Corporations such as PAN Group, Vinamilk, Hoa Phat, Hapro, Intimex, Angimex... have had export activities or researched the market in a number of countries in the region. In addition, the Vietnam National Industry and Energy Group (PVN) and the Military Industry and Telecommunications Group (Viettel) have also invested in production and business in Algeria and Mozambique for many years. However, the number of Vietnamese enterprises present in Africa is still modest compared to its potential.

To increase efficiency, experts recommend establishing logistics centers or transit warehouses in key countries such as Senegal, South Africa, and Morocco to shorten delivery times and reduce costs. At the same time, cooperation in banking, insurance, and import-export support services should be promoted.

Along with that, the support of Vietnamese diplomatic agencies and trade offices in the area will be a solid foundation to help Vietnamese enterprises approach, expand and develop sustainably in this potential market.

baotintuc.vn

Source: https://baolaocai.vn/viet-nam-tim-co-hoi-xuat-khau-sang-chau-phi-khi-rui-ro-gia-tang-tai-thi-truong-truyen-thong-post650004.html