Uganda has turned to Vietnam for expertise in boosting coffee productivity as the two countries seek to deepen economic ties and expand bilateral trade beyond its current modest levels.
The appeal was made during a three-day Uganda-Vietnam business forum in Hanoi, where the two governments signed an agreement aimed at strengthening Uganda’s coffee value chain and explored opportunities for investment, technology transfer and market access.
The engagement comes as Uganda seeks to diversify its economic partnerships in Asia while positioning itself to benefit from the African Continental Free Trade Area (AfCFTA).
At the centre of the discussions was coffee, a key source of income for millions of Ugandan households.
Uganda is Africa’s leading producer of Robusta coffee, but productivity remains significantly lower than in Vietnam, the world’s second-largest coffee producer.
Agriculture Minister Frank Tumwebaze said Vietnamese farmers produce about 3.5 tonnes of coffee per hectare, compared with roughly one tonne or less among Ugandan farmers.
The disparity, he said, presents an opportunity for Uganda to learn from Vietnam’s experience in improving productivity, value addition and market competitiveness.
Tumwebaze said the proposed cooperation should ultimately translate into better returns for farmers.
“An MoU means nothing if a farmer doesn’t see a better price next season. That is the test,” he said.
The cooperation is also expected to support efforts to develop a more productive and deforestation-free coffee sector, with the involvement of sustainable trade organisation IDH.
Uganda and Vietnam have significantly increased bilateral trade in recent years, although volumes remain relatively small compared with the size of their economies.
Official figures show that trade increased from $22.1 million in 2024 to about $95.5 million last year.
Uganda exported nearly $50 million worth of commodities, including coffee, cotton and meat, while imports from Vietnam stood at about $46 million and included animal feed, cement clinker, garments and footwear.
Officials and business leaders at the forum acknowledged that commercial relations had not matched the strength of the two countries’ longstanding diplomatic ties.
The forum was therefore presented as an opportunity to turn the 50-year diplomatic relationship into concrete investment and trade opportunities.
Uganda also promoted itself as a gateway to the African market through AfCFTA, which connects businesses to a market of about 1.4 billion people.
Vietnamese manufacturers reportedly expressed interest in using Uganda as a base for accessing neighbouring markets, including Kenya, Rwanda, South Sudan and the Democratic Republic of Congo.
Vietnamese investments in Uganda are currently estimated at about $40 million, mainly in mining and construction.
Gold exploration company Ba Dinh JSC has pledged $35 million, while steel manufacturer ATAD has invested about $500,000, according to officials.
The two sides also discussed opportunities in digital payments, coffee traceability and business-process outsourcing.
Officials said Uganda and Vietnam are expected to return within 90 days with two concrete proposals arising from the discussions.
Vietnam’s Deputy Foreign Minister Le Anh Tuan said Hanoi was seeking commercial partnerships rather than aid.
“We are not looking for aid, but for partners to build with,” Tuan said, emphasising Vietnam’s technology and experience alongside Uganda’s market and natural resources.
Uganda’s envoy to Vietnam, Betty Bigombe, said the focus should be on investments capable of creating employment and increasing exports.
“Our goal is factories, jobs and exports,” she said.
She added that stronger economic ties with Vietnam could contribute to Uganda’s ambition of becoming a $500 billion economy by 2040.
The forum attracted more than 300 delegates and was organised by Uganda’s High Commission in Kuala Lumpur, which is also accredited to Vietnam, together with the Vietnam Chamber of Commerce and Industry.
Uganda’s delegation was led by Tumwebaze and Information Minister Justine Kasule Lumumba.
Uganda and Vietnam established diplomatic relations in 1973, with bilateral ties receiving renewed momentum following President Museveni’s state visit to Hanoi in 2022.
