Uganda and Vietnam Forge Deeper Economic Ties Beyond Diplomacy

The Pearl of Africa Business Forum – Vietnam Chapter, held in Hanoi on August 12, 2026, marked a pivotal moment for Uganda and Vietnam to strengthen their economic relationship. The event, attended by over 300 government officials and business leaders, aimed to transform existing diplomatic ties into tangible trade and investment opportunities.

Bilateral trade between the two nations has seen a notable increase, growing from $28.6 million in 2024 to approximately $53.4 million in 2025, according to Vietnam’s Deputy Minister of Foreign Affairs, Le Anh Tuan. Other figures presented indicated a total trade of $95.47 million in 2025, with Uganda exporting coffee, cotton, and meat, while importing animal feeds, cement clinker, and electronics.

Discussions at the forum highlighted opportunities for Vietnamese manufacturers to use Uganda as a strategic base for accessing wider African markets through the African Continental Free Trade Area. Investment was also a key focus, with Vietnamese foreign direct investment in Uganda estimated at around $40 million, including significant commitments in gold exploration and construction.

Priority sectors for future investment were identified as agro-processing, manufacturing, minerals, oil and gas, pharmaceuticals, renewable energy, and tourism. Both nations expressed keen interest in partnerships that leverage Uganda’s resources and market access with Vietnam’s technological expertise and industrial experience.

Information and Communication Technology (ICT) emerged as another critical area for collaboration, with discussions centering on digital payment systems for cross-border trade and agricultural technology to enhance coffee traceability. The two countries committed to developing two pilot ICT proposals within 90 days.

A Collaboration Agreement on Coffee Value Chain Development was also signed, with a strong emphasis placed on ensuring that such initiatives directly benefit Ugandan farmers by improving their livelihoods and returns. Ugandan officials emphasized that the goal is to create practical economic partnerships that lead to factories, jobs, and increased exports, contributing to Uganda’s ambition of achieving middle-income status.

This intensified economic diplomacy builds upon the renewed attention following President Yoweri Museveni’s State Visit to Vietnam in November 2022. The forum’s success is anticipated to foster stronger commercial links and create substantial opportunities for growth and development between Uganda and Vietnam.

Source: Nile Post