Processing cashew nuts for export. (Photo: VNA) However, Vietnam reported a trade deficit of 354.4 million USD with Cambodia inthe reviewed period.
One of the reasons behind the trade deficit was increases in import turnover ofsix main products from Cambodia compared to the same period last year, with theimports of cashew nut and rubber witnessing the highest rises.
Vietnam spent almost 1.83 billion USD on importing cashew nuts from Cambodia inthe first eight months, a 7.1-fold hike year-on-year. Meanwhile, Vietnam’s rubber imports from theneighbouring country were 5.3 times higher than the figure of the same period lastyear, reaching 821.8 million USD.
Vietnam’s registered investment in Cambodia hit over 2.85 billion USD, mainlyin agriculture, including cashew and rubber planting.
Vietnamese businesses have invested in Cambodia to take advantage of cheaplabour costs and favourable conditions in terms of land, climate and incentives,and then exported their products back to Vietnam.
To balance the trade value with Cambodia, Vietnam needs to promote processing toimprove the added value of export goods, increase yields and quality of cashew andrubber, and seek to expand export markets for cashew nuts and rubber products.
Attention should also be paid to strictly controlling the import of these goodsto ensure origin rules, and enhancing inspection of commodities exported toVietnam through Cambodia./.
VNA
