Vietnam and Uganda eye broader economic ties

Delegates inaugurated the Vietnam-Uganda Business Forum in Hanoi on August 12, urging enhanced connectivity, improved market insights and novel collaboration frameworks to transform political goodwill into tangible economic engagement. Deputy Foreign Affairs Minister Le Anh Tuan highlighted the nations' potential to boost cooperation in agriculture, energy, mining, and digital transformation.

Trade has already demonstrated promising growth, with bilateral trade surging from $22.1 million in 2024 to approximately $95.47 million in 2025, with Uganda importing $45.62 million worth of goods from Vietnam and exporting $49.85 million, primarily coffee, cotton, and meat.

The more equitable trade dynamics create opportunities for Uganda to expand agricultural and natural-resource exports while granting Vietnamese businesses the chance to invest in manufacturing and value-added production in Uganda for both domestic and broader African markets. Vietnamese investments in Uganda have reached around $40 million, primarily in mining and construction.

Notable commitments include $35 million from Ba Dinh JSC for gold and non-ferrous metal exploration and $500,000 from ATAD Steel for construction. VCCI Vice Chairman Nguyen Quang Vinh emphasized that current trade and investment flows remain below the potential of the two economies, citing geographical distance, limited market information, logistics costs, and legal, business practices, and cultural differences as barriers.

Addressing these challenges, however, is deemed feasible through strengthened institutional and business-to-business links.

Tuan urged for future phases to capitalize on the positive political relationship and prioritize practical economic outcomes, advocating for more frequent exchanges among ministries, industry associations, and enterprises to identify projects and address issues promptly. He stressed the need for regular channels for businesses to access market information, understand priority products, and connect with potential partners.

Vinh called for the implementation of existing agricultural cooperation frameworks and urged both nations to advance economic agreements to bolster investor confidence, including a double taxation avoidance agreement and an investment promotion and protection agreement. Further collaboration could also unfold in specialized areas like petroleum engineering, infrastructure construction, resource development, and digital transformation.

Uganda's Ministry of Foreign Affairs pledged support for business matchmaking, overcoming obstacles, and fostering new partnerships, with VCCI positioned as a bridge between the business communities. Ugandan Ambassador to Vietnam Betty O. Bigombe expressed optimism that the forum would result in memoranda of understanding and specific cooperation agreements, encouraging more Vietnamese companies to visit and invest in Uganda.

She suggested that Uganda could serve as a gateway to broader ASEAN engagement by starting with Vietnam. Chamber of Commerce representatives in Uganda advised Vietnamese investors to identify sectors where they could build regional advantages, such as producing imported goods locally. They also highlighted the importance of careful capital planning, cash-flow management, and cost control for long-term success.