South Africa and Vietnam enjoy mutually warm and reciprocal relations. The two countries established diplomatic relations in December 1993. In the year 2000, Vietnam moved its residential embassy from Luanda to Pretoria. South Africa's embassy in Hanoi, Vietnam was opened on 1October 2002. South Africa's first resident Ambassador to Vietnam was the late Ambassador Sipho S Makana whose term of office ended unexpectedly with his passing away in February 2004. South Africa's current Ambassador to Vietnam, Dr Goitsimolimo Leonard Pitso, presented his credentials in August 2004.

Official visits and delegations
The late Foreign Minister of South Africa, Mr Alfred Nzo, visited Vietnam in July 1998. During Deputy Minister Pahad's visit to Vietnam in September 2000, the Deputy Minister expressed the wish that the expansion of ties between the two countries should focus on agriculture, science and technology, tourism and foreign affairs co-operation. From the Vietnamese side, Mr Nguyen Phu Binh, Vice/Deputy Minister of Foreign Affairs represented Vietnam at the World Conference Against Racism in Durban from 31 August to 7 September 2001. A trade delegation from Vietnam visited South Africa in November 2002 while representatives from the South African Department of Trade and Industry undertook a technical visit to Vietnam during the same period. Vietnam has taken initiatives in the quest to strengthen its co-operation with South Africa. For instance, the Vietnam News Agency opened an office in Pretoria during the latter half of

2003. A business delegation led by the Deputy Chairperson of the Hanoi People's Committee attended SAITEX 2003 together with a number of Vietnamese business organisations, many of whom also participated in SAITEX.

The visit to South Africa by Prime Minister Phan Van Khai in November 2004, was the first visit by a serving Vietnamese Prime Minister. A large business delegation accompanied the Prime Minister. President Mbeki accepted an invitation to visit Vietnam on a convenient date to be negotiated through the diplomatic channels. During the visit, the following agreements were signed:

• Joint Declaration between the Government of the Republic of South Africa and the Government of the Socialist Republic of Vietnam on partnership for Co-operation and Development;
• Agreement concerning the establishment of an Inter-Governmental Partnership Forum for Economic, Trade, Scientific, Technical and Cultural co-operation; and
• Joint Announcement on the establishment of the Joint Trade Committee.

Agreements

The following agreements have already been signed with Vietnam:

• On 22 December 1993 South Africa and Vietnam established diplomatic relations (signed in New York) ;
• In April 2000, a bilateral trade agreement was signed between the two countries;
• A twinning agreement has been signed between the City of Hanoi and the Tshwane Metropolitan Council; and
• In addition, a delegation of the Vietnamese Chamber of Commerce and Industry (VCCI) also signed a co-operation agreement with the Johannesburg Chamber of Commerce and Industry (JCCI) in October 2003

Agreements under consideration include:

• Avoidance of double taxation and fiscal evasion with regard to taxes on income;
• Agreement on the Promotion and Protection of Investments; and
• Visa Exemption agreement on official and diplomatic passport holders

Economic relations

Vietnam is eager to substantially broaden relations with South Africa in the areas of trade, investment and mining, and specifically in fertiliser and oil production. During previous visits to Vietnam, South Africa indicated an interest in ties between the two countries in the fields of agriculture, science and technology, trade and industry, tourism and foreign affairs co-operation. Bilateral trade between the two countries increased from 97,107 million in 1998 to 823,707 million in 2004. South Africa's imports from Vietnam are mainly footwear and vegetable products, mineral products, textiles and textile products, machinery and mechanical appliances. (According to Vietnamese trade statistics, a very large volume of rice is being exported to South Africa). However, this product is being traded through a third country broker and is therefore not reflected in South Africa's trade statistics. South Africa's exports to Vietnam include base metals and base metal products, wood and wood products, wood pulp, machinery and mechanical appliances, prepared foodstuffs, products of chemical and allied industries, live animals and animal products. It is expected that Vietnam could join the WTO at the end of 2005. WTO membership would boost exports dramatically especially in the promising garment industry that already supports some 10 million people. After oil and rice, garment production is Vietnam's most important export industry. There are long-term trade and investment opportunities for SA companies in Vietnam, mainly in the transport and mining sector, including road and infrastructure projects. Good potential exists for exports of SA steel, machinery and chemicals.

Relations with Africa

The Ministry of Foreign Affairs of Vietnam initiated the first African Conference entitled Vietnam-Africa: Opportunities for Co-operation and Development in the 21^st Century". The conference was held on 28-29 May 2003 in Hanoi, and was attended by 84 foreign delegates from 23 countries, eight ministers and vice-ministers, and ten international organisations. The conference was divided into four main sessions:

1. Overview of Vietnam and Africa;
2. Agriculture and tripartite co-operation;
3. Trade finance, construction, industry and transport co-operation; and
4. Labour, health, education and human resource development