Nigeria-Vietnam Trade Relations: A Blossoming Partnership
The Nigeria-Vietnam Chamber of Commerce and Industry (NVCCI) has played a pivotal role in fostering and expanding trade relations between Nigeria and Vietnam. Established in 2007, the NVCCI, a private sector initiative, emerged from a vision to enhance bilateral trade following former President Olusegun Obasanjo’s state visit to Vietnam. Starting with humble beginnings and a bilateral trade volume of a mere $50 million, the NVCCI’s persistent efforts have contributed significantly to the current trade balance exceeding $1 billion, with Nigeria holding the lion’s share at approximately $600 million in exports. This remarkable growth underscores the chamber’s commitment to facilitating trade and investment between the two nations.
The NVCCI has focused on facilitating trade in primary products such as cashew nuts, coconuts, ginger, and corn, which constitute the bulk of Nigeria’s exports to Vietnam. Beyond trade, the relationship has extended to capacity building and knowledge transfer. Vietnam’s expertise in maritime, particularly in seafood export, has led to training opportunities for Nigerian seafarers. Furthermore, Vietnam’s prowess in information technology has opened doors for collaboration in the tech sector. The NVCCI is actively working on a partnership between the University of Lagos and Vietnam’s FPT University to establish a research and production unit for microchips and semiconductors in Nigeria. This exemplifies the chamber’s dedication to fostering technological advancements and knowledge exchange between the two countries.
Recognizing the need to move beyond raw material exports, the NVCCI has been instrumental in encouraging Vietnamese companies to invest in processing facilities within Nigeria. This aligns with the Nigerian government’s push for value addition and domestic processing of raw materials. Initiatives are underway to process cashew nuts, cotton, and other agricultural products locally. One of the major challenges faced by Nigerian cashew nut exporters is the deterioration of quality due to mold formation during the rainy season. To address this, the NVCCI is collaborating with the Federal Institute of Industrial Research in Oshodi to develop prototype drying machines, ensuring a stable supply of high-quality cashew nuts year-round.
Food security is a critical area of focus for the NVCCI. Vietnam’s remarkable transformation from a net food importer to a leading global exporter of rice, coffee, seafood, and pepper serves as an inspiring model for Nigeria. The NVCCI has facilitated visits to Vietnamese farm settlements and industrial parks for Nigerian stakeholders to learn from Vietnam’s success in leveraging micro, small, and medium enterprises (MSMEs) in agriculture. The chamber advocates for the adoption of Vietnam’s MSME-centric approach, which has significantly contributed to its agricultural growth and GDP. The NVCCI is currently collaborating with the Office of the Secretary to the Government of Nigeria to organize a high-level visit to Vietnam, focusing on food security, digital technology, the maritime and blue economy, and youth unemployment.
In anticipation of a potential presidential visit to Vietnam, the NVCCI advises prioritizing food security, digital technology, and the maritime and blue economy in the discussions. These areas hold significant potential for collaboration and mutual benefit, aligning with Nigeria’s current developmental priorities. Previous high-level engagements, including the Vice President’s visit in 2022, have resulted in the signing of key agreements, such as a defense pact, a reciprocal investment promotion and protection agreement, and an avoidance of double taxation agreement. Building on these foundations, the presidential visit should aim to concretize collaborations in the identified priority areas.
The NVCCI considers its collaboration with the Vietnam Chamber of Commerce and Industry (VCCI) as one of its most significant achievements. This partnership provides valuable support and facilitates access to the Vietnamese government and business ecosystem. The NVCCI has also organized trade promotion visits and brought Vietnamese trade missions to Nigeria, promoting business linkages and investment opportunities. A notable success story is the planned establishment of a confectionery processing company in Nigeria by a Vietnamese company following a facilitated visit and meetings with key Nigerian stakeholders. These accomplishments demonstrate the NVCCI’s impactful role in bridging the gap between Nigerian and Vietnamese businesses, fostering mutually beneficial partnerships, and driving economic growth.
