Senegal has emerged as Vietnam’s third largest trade partner in Africa, only preceded by South Africa and Egypt.

Located in West Africa, Senegal has a total area of 196,190sq.km and a population of 14 million. It pursues the diversification of its international relations as a means of harnessing foreign capital and advanced technology.

The country has joined the United Nations (UN), World Trade Organisation (WTO), African Union (AU), Non-Aligned Movement (NAM), French-speaking community (Francophonie), West African Economic and Monetary Union (UEMOA), and many other regional and international organisations.

In 1985 Senegal began economic reforms under a cooperation programme with the International Monetary Fund (IMF), liberalising its economy and developing the private sector.

In 2011 it achieved a GDP growth rate of 2.6 percent with a per capita income of around US$1,115. Its economy is heavily reliant on agricultural production, which makes up three quarters of its total exports.

As a result of prolonged droughts, rice cultivation only meets 30 percent of the domestic demand, forcing Senegal to import between 700,000-900,000 tonnes of rice annually to feed its population.      

Besides food, Senegal also imports consumer goods, industrial products, and oil, mostly from France, China, Britain, Nigeria, the Netherlands, and the US.

Ample opportunity

Senegal is one of the four most powerful economies in West Africa, offering a surplus of opportunities for Vietnamese products to penetrate a market boasting 14 million consumers.  

Over the past decade, as many as 30 Vietnamese commodities including rice, garments, motorcycle spare parts, rubber products, cassava powder and pepper have gained a firm food hold in this market.

Rice and motorcycle spare parts are imported into Senegal and then re-exported to other countries in the region.

The country has the most stable politics in West Africa. It currently enjoys a zero tax rate when exporting commodities to the European Union and United States. If foreign businesses invest in production or processing based in Senegal, this tax mechanism can be exploited for exports to the EU and US.

Senegal boasts the best transport infrastructure (seaport, airport and road) and telecommunication systems in West Africa. Its banking system offers reliable services, only second to Ivory Coast.  

Currently, about 300 Vietnamese nationals are residing and working in Senegal, who serve as a bridge between Vietnam and the West African country.

Vietnam and Senegal established diplomatic ties in 1969. They signed a framework agreement on economic, trade, cultural, scientific and technological cooperation in 1995, and a tripartite cooperation agreement between Vietnam, the Food and Agriculture Organisation (FAO) and Senegal in 1996.  

Between 1997 and 2005, Vietnam sent 100 agricultural experts to Senegal every year, all of whom earned praise for their competence. President Abdoulaye Wade has labelled the successful tripartite cooperation in agriculture an exemplary model for the South-South cooperation.

Vietnam has maintained a trade surplus with Senegal for years, with its exports increasing considerably from just US$21.3 million in 2001 to US$104 million in 2009. In 2011, its exports reached US$190 million, up 138 percent from 2010.

Major export items include rice, garments, motorcycle spare parts, steel, pepper, plastic materials, cookies, footwear, cases, hats, umbrellas, and ceramics.

Some of the items Vietnam imports from Senegal include iron scrap, cotton, machinery, equipment, woodwork, and animal feed.

Despite the positive signs, bilateral trade has yet to match the two countries’ economic potential mostly due to a lack of up-to-date information and infrequent exchanges of delegation visits.

The Ministry of Industry and Trade will send a trade promotion delegation to Senegal from October 16-22 to explore opportunities and expand cooperation with this West African country and its compatriots on the continent.  

Source: VOV