Hanoi (VNA) – National Assembly Chairman Tran Thanh Man’s official visit to Cambodia, combined with his participation in the 12th General Assembly of the International Conference of Asian Political Parties (ICAPP) and 11th Plenary Session of International Parliament for Tolerance and Peace (IPTP), promises to unlock new cooperation opportunities between the two nations.
Sustaining Growth
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According to Vietnam’s Ministry of Industry and Trade, bilateral trade relations between Vietnam and Cambodia have grown robustly, playing a pivotal role in driving socio-economic development in each country and strengthening their comprehensive cooperation.
When the Vietnam - Cambodia Trade Agreement was signed in 1998, bilateral trade was valued at 117 million USD. In 2010, this figure rose to 1.8 billion USD.
Between 2010 and 2015, the two-way trade turnover grew at an average annual rate of 18.5%, doubling to 3.35 billion USD in 2015. Vietnam’s exports to and imports from Cambodia increased by 15.5% and 32.7% on an average yearly basis during this period.
From 2016 to 2020, the bilateral trade continued its upward trajectory, growing by 17% annually on average to reach 5.31 billion USD in 2020. In 2019, the two nations surpassed their 5 billion USD trade target, initially set for 2020.
In 2022, the figure climbed to 10.57 billion USD, up nearly 11% year-on-year. However, global economic complexities and weakened consumer demand led to a decrease of 19.5% to 8.6 billion USD in the following year.
In the first ten months of 2024, trade rebounded, reaching 8.3 billion USD, an annual rise of 17.5%. Vietnam sold 4.4 billion USD worth of goods to the neighbouring nation, up 7.4% year-on-year, while its import value surged by 31.5% to 3.9 billion USD. Vietnam remains Cambodia’s largest trading partner within the Association of Southeast Asian Nations (ASEAN).
In this year’s first ten months, the country’s key exports to Cambodia were garment-textile, steel, and petroleum products, among others. Its major imports from the partner included cashew nuts, rubber, and fruits and vegetables.
For the first 11 months, Vietnam’s exports to Cambodia are estimated at 4.9 billion USD and imports 4.4 billion USD, increasing by 8.3% and 31.7% against the same period last year, respectively.
Trade experts said the countries have continuously improved their bilateral trade frameworks and border trade policies. The development of infrastructure serving border trade has received more attention, with roads, warehouses, and goods transit facilities in the area gradually upgraded and expanded. Vietnam has held regular trade promotion activities at home and in Cambodia.
However, challenges remain. Experts point out that legal frameworks for bilateral trade need further improvement. The countries’ 2013 goods transit agreement requires review and amendments. Limitations in border infrastructure have prevented reduction in transport times and costs facing Vietnamese and Cambodian businesses. Additionally, smuggling persists in some border provinces.
Stepping up Collaboration
During a working session between Vietnam’s Minister of Industry and Trade Nguyen Hong Dien and Cambodia’s Minister of Commerce Cham Nimul and Minister of Industry, Science, and Technology Hem Vandy, the sides acknowledged significant progress in bilateral trade and industrial cooperation.
They agreed to pursue measures to elevate economic and trade relations, including revising related legal frameworks, better disseminating information on trade incentives, and enhancing anti-smuggling collaboration. Their efforts will also focus on exchange experience to help Cambodia improve its business climate and investment attraction policies in the industrial production sector.
The Vietnamese Ambassador to Cambodia affirmed that in 2024 and beyond, Vietnam will prioritise comprehensive cooperation with Cambodia, with economy-trade ties placed at the forefront. The two nations will continue to implement signed agreements and memoranda of understanding, such as their border trade pact and bilateral trade promotion agreement for 2023 – 2024, while exploring new investment and trade opportunities. These efforts are expected to pave the way for achieving their ambitious bilateral trade target of 20 billion USD in the coming years./.
