Vietnam- Africa: huge potential in agriculture and mining cooperation

Africa has plentiful unexploited natural resources, minerals and land. The continent needs international cooperation for various fields like industry, oil, gas, trade, investment, manpower and specially agriculture. Vietnamese companies can forge cooperation in these interesting fields.

Potential for agricultural development

African population is crowded and is growing rapidly but its capacity for agricultural and industrial production is weak. According to experts, the agricultural underdevelopment is one of main causes for the inability of African economies to fully tap its available resources. Besides, Africa is recommended to develop agriculture as this spearhead economic sector creates most jobs. The continental agriculture needs some US$40 billion of investment capital to significantly reduce reliance on exotic foods. According to statistics, African countries spend US$18 billion a year to import foods.

Before this reality and the experience of Vietnam’s growing from a rice importer to a world-leading rice exporter, African governments want to form and strengthen agricultural cooperation with the Southeast nation. According to the latest information, many African countries have officially requested Vietnam to send farmers to African nations to teach Africans to cultivate, harvest and process rice. More than 30 Vietnamese agriculturists are helping farmers in some African countries like Benin, Mali, Mozambique and Guinea Conakry to apply Vietnam’s scientific and technical achievements and practices.

Besides, Vietnam centrally helps African countries train and develop human resources in the areas of Vietnam’s strengths such as agriculture, aquaculture. The Government of Vietnam has implemented many measures to support African rural development like introducing new crops and livestock, expanding aquaculture, supporting reforestation, protecting environment, ensuring food security and mitigating natural disasters. Vietnamese experts help African farmers to build models of technology transfer in the fields of irrigation, animal husbandry, cultivation, beekeeping, aquaculture, agricultural product processing, and others. Particularly, rice production models were piloted in Senegal, helping farmers to increase farming value. In addition, Vietnamese specialists also introduce new agricultural sectors like freshwater aquaculture and beekeeping to African farmers. What’s more, through a expertise network, the Government of Vietnam also helps African countries improve agricultural policies, water source management, land reform policies and others.

Huge opportunities for companies

According to Mr Ly Quoc Hung, Director of Africa, West Asia, South Asia Markets Department under the Ministry of Industry and Trade, African countries have been long famous for important natural resources like oil (accounting for 9.5 percent of the world’s reserves), gas (8.2 percent), cobalt (90 percent), platinum (90 percent), gold (50 percent), chromium (98 percent), manganese (64 percent), and uranium (33 percent). However, the African industry has long been rated most backward in the world. Except for oil, gas and minerals relatively developed in some countries, industries fail to meet the continental demand. According to economic experts, industrial growth has slowed down in most African countries for years. Most industrial companies have limited financial and technological capacities.

While in Vietnam, after a long period of political stability and economic development, key economic sectors have secured solid growth and sharpened international competitive edge like textile, footwear, agricultural equipment, electrical appliances, electronics, bicycles, motorcycles, building materials, furniture, plastics, pharmaceuticals, computer components. These sectors are in need in African nations and Vietnam can easily target to supply. Specifically, the Vietnam National Oil and Gas Group (PetroVietnam) has many joint oil and gas projects in Algeria. Besides, Vietnamese chemical and mining companies can also work with Africa to exploit rich mineral resources like platinum, chromium, manganese, cobalt, gold, diamond, copper, iron, coal, tin, bauxite, phosphate. Additionally, with a large fast-growing population, Africa is highly likely to import made-in-Vietnam apparels.

Africa and Vietnam are standing before new opportunities to boost economic development cooperation. Both parties have their own strengths to supplement each other. – VCCI

Tags: Vietnam Africa trade