President Cyril Ramaphosa on Friday urged the Vietnamese to explore new ventures to diversify into untapped sectors and to build partnerships, thereby generating jobs, transferring skills and stimulating inclusive growth, as he noted low investment between South Africa and Vietnam.

Ramaphosa was speaking during a State visit to Vietnam, where he stated that there was no record of Vietnamese investments in South Africa.

He said there were several financial and non-financial support measures available for Vietnamese companies keen to invest in South Africa to diversify their supply chains.

“Our cooperation must extend into strategic sectors that define the economies of tomorrow. These sectors include electric vehicles, battery manufacturing, renewable energy, agro-processing and digital innovation,” he said.

However, Ramaphosa noted that in recent years, trade between South Africa and Vietnam expanded significantly.

South Africa ran a sizable trade deficit with Vietnam, importing significantly more than it exported, he pointed out.

“…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,” he said.

He said the imbalance between the countries called for a move beyond the traditional trade in raw materials.

“…we need to work toward greater value addition, diversification and industrial collaboration,” he said.

He said South Africa had much to offer Vietnam, in terms of mining, agriculture and manufacturing, while Vietnam, in turn, brought strengths in electronics, textiles, machinery and renewable-energy technologies.

“By combining South Africa’s natural advantages with Vietnam’s manufacturing dynamism, we can create industries that generate jobs, drive exports and strengthen both our nations’ positions in the global economy,” he said, describing the partnership as “untapped potential”.

Africa and Asia could connect supply chains, enhance trade flows and create new pathways for investment, Ramaphosa argued.

“Together, we can build resilient food supply chains, foster technology transfer in agro-processing and expand our mutual exports into new markets.

“South Africa has demonstrated strengths in mining, automotive manufacturing and infrastructure development. These can complement Vietnam’s strong base in electronics, textiles and industrial production,” he said.

He explained that South Africa was advancing renewable-energy and green hydrogen projects, while Vietnam was also investing in sustainable energy infrastructure.

He said Vietnam could leverage South Africa’s mineral wealth through investment and technology partnerships.