Bitnob-Neutronpay partnership will help improve trade relations between Vietnam and Africa.
Trade relations between Vietnam and Africa have witnessed remarkable growth over the past decade, leading to mutual benefits and significant improvements in both economies. In 2022, trade between Vietnam and Africa increased from $2.52 billion in 2010 to $5.5 billion.
The trade relationship between Vietnam and Africa has evolved into a mutually beneficial partnership, bolstering economic growth in both regions. The exports to Africa from Vietnam can be broken down into rice (568.6 million USD), phones and component parts (355.6 million USD), computers and electronic products (210.4 million USD), and footwear (141.8 million USD). In turn, Africa supplies Vietnam with natural resources, such as oil, minerals, and agricultural products, creating a symbiotic trade dynamic.
Remittances play a crucial role in sustaining and expanding the Vietnam-Africa trade relationship. Remittances are the funds sent by Vietnamese workers in Africa back to their families and communities in Vietnam. These inflows provide a stable source of income, promoting domestic consumption, investment, and economic growth in Vietnam. Additionally, remittances foster social cohesion and poverty alleviation, as they enable families to access better education, healthcare, and housing.
In view of the above, Bitnob partnered with Neutronpay to help Vietnamese and Africans with cross-border payments. Despite the existing vibrant trade relationships between Vietnam and various parts of Africa, the common challenge of remittances still remains.
Over the years, remittances through traditional means have proven to be slow and expensive due to high fees which consume a significant part of potential earnings. This could hinder further acceleration of trade relationships.
The power of the bitcoin infrastructure enables the free flow of funds from Vietnam and Africa. The lightning network makes it possible for users to be settled in their local currency within minutes. This is made possible through the partnership between Bitnob and Neutronpay.
This new partnership will unlock new levels of bilateral trade between Vietnam and other parts of Africa. Both parties will be able to make payments in a way that is fast and cheaper than existing remittance services. The long-term effects of this partnership are projected to lead to economic growth, reduction in the cost of goods and services, and fostering stronger trade relationships.