Việt Nam, Cambodia look forward to $20 billion trade

June 28, 2024 - 10:38
Trade between Việt Nam and Cambodia is expected to reach US$20 billion.
Xa Mát international border gate in Tây Ninh Province connects Việt Nam and Cambodia. — VNA/VNS Photo Hồng Đạt

HÀ NỘI — 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 source of many raw materials for Vietnamese industry, particularly rubber. It is also a major consumer of Vietnamese products like 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. Two-way trade grew by an average of 18.5 per cent annually between 2010 and 2015 and 17 per cent per year between 2016 and 2020, reaching $5.31 billion in 2020 from $2.92 billion in 2016.

The year 2022 saw a significant jump of 11 per cent to $10.57 billion in trade value. The positive momentum has carried into 2024, with the first five months recording a trade value of $4.6 billion, reflecting a 13.4 per cent 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 per cent decrease compared to the same period last year.

Meanwhile, Việt Nam's imports from Cambodia in the period surged by 38.4 per cent to an estimated $2.9 billion, driven by cashew nut, rubber, fruits and vegetables.

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

Trade experts believed that fostering a favourable and stable business environment is crucial to facilitating exports. They also advocated for increasing investment in research and development to enhance the quality and competitiveness of Vietnamese goods and pursuing free trade agreements and along with 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. — VNS