Vietnam and Uganda eye broader economic ties

Delegates cut the ribbon to open the Vietnam-Uganda Business Forum. Photo: Organising Committee

At the “Vietnam-Uganda Businesses – The Pearl of Africa” forum in Hanoi on August 12, officials and business leaders called for stronger connectivity, better market information and new cooperation mechanisms to translate political goodwill into more substantive economic engagement.

Deputy Minister of Foreign Affairs Le Anh Tuan said the two countries were well-placed to expand cooperation in several complementary sectors, particularly agriculture, energy, mining and digital transformation.

Trade has already shown encouraging momentum. Two-way turnover reached $22.1 million in 2024 before rising more than fourfold to around $95.47 million in 2025. Last year, Uganda imported $45.62 million worth of goods from Vietnam, while its exports to Vietnam reached $49.85 million, led by coffee, cotton and meat.

The more balanced trade structure is creating room for Uganda to increase agricultural and natural-resource exports, while opening opportunities for Vietnamese businesses to invest in manufacturing and value-added production in Uganda for both the domestic and wider African markets.

Vietnamese investment commitments in Uganda have reached around $40 million, with mining and construction among the main areas of interest. Ba Dinh JSC has committed $35 million to gold and non-ferrous metal exploration, while ATAD Steel has invested $500,000 in construction.

Nguyen Quang Vinh, vice chairman of the Vietnam Chamber of Commerce and Industry, said current trade and investment flows still remained below the potential of the two economies. He noted that geographical distance, limited market information, logistics costs, and differences in legal frameworks, business practices and culture continued to affect cooperation.

Those challenges, however, were seen as manageable if both sides strengthened institutional and business-to-business links.

Tuan said the next phase should build on the two countries’ positive political relationship and focus more strongly on practical economic outcomes. He called for more frequent exchanges among ministries, industry associations and enterprises to identify projects and address difficulties early.

“Vietnam and Uganda need to create regular channels for businesses to access market information, understand priority products and investment policies, and connect with potential partners,” he said. “With stronger political commitment and greater engagement from enterprises, there is considerable room to expand cooperation in a more effective and substantive manner.”

He also urged both countries to advance economic agreements that could give investors greater confidence, including a double taxation avoidance agreement and an investment promotion and protection agreement.

Further cooperation could also be developed in more specialised areas such as petroleum engineering, infrastructure construction, resource development and digital transformation. Existing agricultural cooperation frameworks should also be implemented more actively, according to Tuan.

“With strong determination from both governments and efforts from the business communities, I believe this forum can become a bridge for Vietnam and Uganda to broaden their development partnership,” he said. “It can also help generate concrete agreements and contracts that deepen the bilateral relationship.”

The Ministry of Foreign Affairs said it stood ready to work with VCCI and relevant ministries to support business matching, help remove obstacles and facilitate new partnerships.

VCCI is also positioning itself as a bridge between the two business communities. Vinh said the chamber could assist enterprises in accessing market information, identifying credible partners and assessing investment opportunities.

Ugandan Ambassador to Vietnam Betty O. Bigombe Photo: Organising Committee

Ugandan Ambassador to Vietnam Betty O. Bigombe expressed hope that the forum would lead to memoranda of understanding and specific cooperation agreements, while encouraging more Vietnamese companies to visit and invest in Uganda.

“We believe that by starting with Vietnam, Uganda can also gain a gateway to broader engagement with other ASEAN countries,” she said.

Representatives of the Uganda Chamber of Commerce and Industry said Vietnamese investors should first identify sectors in which they could build regional advantages. One option would be to study products currently imported from Vietnam by Uganda and neighbouring East African markets such as Kenya, Tanzania and Rwanda, then consider producing those goods locally in Uganda.

They added that investors establishing operations in Uganda could access tax incentives and repatriate profits after meeting local tax obligations. Careful capital planning, cash-flow management and cost control would nevertheless remain important for long-term success.

With trade already rising rapidly and both sides signalling a willingness to deepen institutional and business links, the next step will be turning broad potential into commercially viable projects and stronger regional market access.