Việt Nam-Cambodia Trade Sees Robust Growth, Poised to Reach $20 Billion

Hanoi, The Gulf Observer: Trade has been a bright spot in the Việt Nam-Cambodia relationship, experiencing impressive growth over the past decade and is now expected to reach US$20 billion in the future.

Cambodia serves as a significant source of raw materials for Vietnamese industry, particularly rubber. It is also a major consumer of Vietnamese products such as iron and steel, construction materials, processed food, and consumer goods.

Data from the Ministry of Industry and Trade’s Asia-Africa Market Department revealed a strong upward trend in bilateral trade. Between 2010 and 2015, two-way trade grew by an average of 18.5 percent annually, and from 2016 to 2020, it grew by 17 percent per year, reaching $5.31 billion in 2020 from $2.92 billion in 2016.

The year 2022 saw a significant jump in trade value, increasing by 11 percent to $10.57 billion. This positive momentum has continued into 2024, with the first five months recording a trade value of $4.6 billion, reflecting a 13.4 percent increase.

Việt Nam’s exports to Cambodia during the first half of 2024 were estimated at $2.5 billion, mainly consisting of iron and steel, clothing, and petrol and oil. However, this represented a 1.1 percent decrease compared to the same period last year.

Conversely, Việt Nam’s imports from Cambodia during the same period surged by 38.4 percent to an estimated $2.9 billion, driven by cashew nuts, rubber, fruits, and vegetables.

Vietnamese Ambassador to Cambodia Nguyễn Huy Tăng stated that in 2024 and beyond, the two countries will continue to implement existing agreements and memoranda of understanding, including border trade and the 2023-24 bilateral trade promotion agreements.

Trade experts believe that fostering a favorable and stable business environment is crucial to facilitating exports. They also advocate for increased investment in research and development to enhance the quality and competitiveness of Vietnamese goods and for pursuing free trade agreements and other economic accords.

Vietnamese businesses are encouraged to focus on producing high-quality and competitively priced products and services to attract Cambodian consumers. Building a broad and stable distribution network in Cambodia is also seen as a key step toward further success.