Vietnam eyes deeper trade ties with Tanzania

By Business Insider Reporter

Vietnam is signalling a stronger commercial push into East Africa, with Tanzania emerging as a potentially important gateway for expanding trade, investment and business cooperation between the Southeast Asian economy and the region.

The message came as the Vietnamese Embassy in Tanzania hosted a reception in Dar es Salaam recently to mark Vietnam’s National Day and reaffirm Hanoi’s commitment to strengthening economic and diplomatic relations with East African countries.

The event brought together Tanzanian politicians, academics, diplomats, representatives of international organisations, businesses and members of the Vietnamese community, providing a platform to highlight opportunities for deeper commercial engagement.

For Tanzania, the significance of the relationship goes beyond diplomacy.

Vietnam’s experience in export-oriented manufacturing, agriculture, technology and value addition offers areas where Tanzanian businesses and investors could explore partnerships, particularly as the country seeks to expand its industrial base and increase the value of its exports.

From diplomatic ties to business

Vietnamese Ambassador to Tanzania Vu Thanh Huyen said Vietnam attaches importance to its relations with African countries and wants to further develop practical and effective cooperation with East African partners.

The emphasis on “practical” cooperation is significant for Tanzania as it seeks to attract investment capable of supporting industrialisation, technology transfer and export growth.

Vietnam has transformed itself from a largely agrarian economy into a major manufacturing and export hub, building globally competitive industries in electronics, textiles, footwear, machinery, food processing and other sectors.

For Tanzania, which is pursuing industrialisation while seeking to increase domestic value addition, Vietnamese expertise could offer opportunities for joint ventures, technical partnerships and investment.

The potential extends beyond bilateral trade.

With its geographical position on the Indian Ocean and access to markets in the East African Community and wider African Continental Free Trade Area, Tanzania can offer Vietnamese companies a platform from which to reach a much larger regional market.

Agriculture offers a natural entry point

Agriculture is one of the areas where the interests of the two countries could converge most directly.

Tanzania is seeking to raise agricultural productivity, improve food processing and develop agricultural exports, while Vietnam has extensive experience in commercial agriculture, agro-processing, irrigation, aquaculture and export-oriented farming.

The experience of Vietnam’s agricultural transformation could be particularly relevant to Tanzania’s efforts to move farmers from producing raw commodities towards higher-value products.

Lessons from Vietnam’s industrialisation

Vietnam’s economic rise is particularly relevant to Tanzania because both countries have sought to use agriculture as a foundation for wider industrial transformation.

Vietnam’s Doi Moi reforms opened the economy to greater private-sector participation, foreign investment and international trade, helping the country become deeply integrated into global manufacturing and supply chains.

The country’s experience could provide lessons for Tanzania as it attempts to attract more manufacturing investment and move towards higher-value production.

For Tanzanian businesses, the relationship could also provide access to Vietnamese technology, production systems and markets.

For Vietnamese companies, Tanzania offers access to natural resources, agricultural opportunities, a growing consumer market and a strategic location for serving East and Central Africa.

Technology and digital business

Technology could become another important pillar of the relationship.

Vietnam has developed significant capabilities in telecommunications, digital services, electronics manufacturing and fintech.

Tanzania, meanwhile, is rapidly expanding digital financial services, telecommunications infrastructure and digital government systems.

Tanzania as an East African gateway

The commercial case for Vietnam to deepen its engagement with Tanzania is strengthened by Tanzania’s position within regional trade networks.

Dar es Salaam provides access to the Indian Ocean and serves as a major logistics corridor for several landlocked countries, including Zambia, Rwanda, Burundi, Malawi and the Democratic Republic of Congo.

That gives Vietnamese manufacturers and exporters an opportunity to view Tanzania not simply as a national market but as a regional distribution and production base.

For Tanzania, attracting Vietnamese investment could help diversify its foreign investment sources and strengthen links with Asian supply chains.

The relationship could also benefit Tanzanian exporters seeking access to Asian markets if appropriate trade and investment partnerships are developed.

From trade to production

The experience of Vietnam’s cooperation with Mozambique offers an indication of what deeper commercial relations can look like.

Vietnamese companies have been involved in Mozambique through projects such as Movitel, a telecommunications joint venture, alongside agricultural cooperation and technical exchanges. The model illustrates the potential for African-Vietnamese relations to move beyond the conventional pattern of exporting and importing goods towards joint ventures, technology transfer and local production.