The signing of the Memorandum of Understanding (MoU) on Agricultural Cooperation between South Africa and Vietnam on 21 November 2025, marks a decisive and pragmatic step toward realising the immense economic potential of the Asian market. For the South African farming community, this agreement is not simply a diplomatic handshake; it is a critical piece of policy architecture designed to institutionalise our trade relationship, secure long-term market access, and ultimately increase producer revenue.
Rapid Policy Action: Three Weeks to a Milestone
The speed of execution itself signals the high priority this market holds. The agreement was formally finalised and signed by Deputy Minister Rosemary Nokuzola Capa and her Vietnamese counterpart just three weeks after Minister of Agriculture John Steenhuisen’s visit to Vietnam. This rapid conclusion follows President Cyril Ramaphosa’s direct request that all Ministries “move swiftly, and with purpose, to expand South Africa’s access to export markets,” demonstrating a clear political commitment to breaking down trade barriers for local growers.
The Economics: Accessing Asia’s $30 Billion Basket
The primary economic incentive is scale. Vietnam maintains an agricultural import market valued at over US$30 billion annually—one of the largest and fastest-growing in Asia. While this is a massive opportunity, South Africa’s current market share is negligible, accounting for only 0.3% of Vietnam’s total agricultural imports (approximately US$89 million in 2024).
The MoU changes this dynamic. It creates a formal channel to accelerate market penetration and scale up exports across existing commodities such as maize, nuts, cotton, apples, pears, and grapes, allowing South African products to compete more effectively against established global rivals. This strategy aims to significantly increase the value and volume of our agricultural shipments, diversifying the export base away from traditional markets and securing greater economic resilience for local producers.
The Citrus Precedent: A Vote of Confidence
The commercial viability of this partnership is already proven by a landmark success story. Following a bilateral protocol that opened the market to South African oranges in May 2024, exports soared. In the subsequent 2025 season, South African orange shipments saw a striking fourfold increase, surging from 53,311 fifteen-kilogram cartons to 209,569 cartons.
This powerful growth validates South Africa’s position as the world’s second-largest citrus exporter and confirms the strong demand for our high-quality produce among Vietnamese consumers. Building on this momentum, the ministry is now aiming to leverage the MoU to expedite market access for other high-value citrus, particularly mandarins, offering fresh avenues for growth in the fruit sector.
The Long-Term Value: De-Risking Trade
Crucially, the MoU provides long-term stability by focusing on systemic issues. It institutionalises cooperation across eight technical areas, including plant protection, veterinary services, research, and technology transfer.
For farmers, this technical collaboration is vital because it proactively addresses Non-Tariff Barriers (NTBs). By formalising standards and sharing expertise in areas like pest and disease management, the two nations are streamlining complex phytosanitary and zoosanitary regulatory processes. This reduces the risk of costly trade disruptions and quarantine issues, thereby providing a more predictable and secure trading environment for exporters.
Ultimately, this agreement solidifies Vietnam as a key strategic partner and a vital gateway to the broader Southeast Asian (ASEAN) economic region, securing a fundamental foothold that promises long-term commercial returns for South African agriculture.