Africa is becoming a global investment hub thanks to its
young workforce, rapid urbanization, and the implementation of the African
Continental Free Trade Area (AfCFTA).

Within this broader context, Uganda has emerged as a key
economy in East Africa, owing to its strategic location connecting the East
African Community (EAC). Its rich mineral resources, fertile land, high
economic growth rate, and abundant labor force make Uganda a promising
destination for international investors, including those from Vietnam.

The assessment was made by Deputy Minister of Foreign
Affairs Le Anh Tuan during the “Vietnam-Uganda Business Forum: The Pearl
of Africa,” held in Hanoi on August 12.

In recent years, the traditional friendship between Vietnam
and Uganda has seen positive progress. Bilateral trade turnover in 2025 reached
$53.4 million, nearly double the $28.6 million recorded in 2024. To date,
Vietnam has three investment projects in Uganda with a total registered capital
of approximately $35 million.

Despite these positive signals, both sides
acknowledge that current trade and investment activities remain relatively
modest.

“In reality, economic cooperation between Vietnam and Uganda
is still limited and does not yet match the potential and needs of both sides,”
said Mr. Tuan.

Explaining why trade and investment have not reached their
full potential, Vice President of the Vietnam Chamber of Commerce and Industry
(VCCI) Nguyen Quang Vinh cited limited market information and geographical
distance as factors that prevent many Vietnamese enterprises from fully seizing
opportunities in Uganda. Furthermore, high logistics costs and differences in
legal environments, business practices, and corporate cultures remain
significant bottlenecks hindering investment flows.

Towards sustainable and mutually beneficial partnership

To turn potential into substantive cooperation, Deputy Foreign  Minister Tuan suggested that the two countries increase the exchange of
delegations at all levels and establish regular connection mechanisms between
ministries, sectors, and business communities to identify opportunities and
resolve obstacles in economic cooperation.

Both sides need to assist businesses in identifying priority
product lists and investment policy information, while pushing for the signing
of key framework agreements, such as the Double Taxation Avoidance Agreement
and the Investment Promotion and Protection Agreement, according to the Deputy Foreign Minister.

Additionally, there is room for further research and
cooperation in emerging sectors such as digital transformation, oil and gas
engineering, infrastructure construction, and resource extraction.

Mr. Vinh emphasized that VCCI would step up the sharing of
information regarding Uganda’s strengths, such as agricultural products,
coffee, minerals, and tourism. The body will also organize training programs to
equip Vietnamese enterprises with the necessary knowledge of local business
culture.

Ugandan Ambassador to Vietnam, H.E. Ms. Betty O. Bigombe, expressed
her hope that Vietnamese investors would increase their presence in Uganda to
add value to local products, thereby turning Uganda into a gateway for
Vietnamese businesses to reach the wider African market.

Uganda stands ready to cooperate deeply with Vietnam in
technology transfer, human resource training, and strengthening the links
between the governments and business communities of both nations, the ambassador said.