Cashew nut processing in Cambodia. Due to the lack of processing facilities, the country exports tens of thousands of tonnes of unprocessed cashew to Vietnam each year. - Photo: The Phnom Penh Post/ANN
PHNOM PENH: As neighbouring countries, trade relations between Cambodia and Vietnam have continued to grow steadily.
In the first 10 months of 2024, total trade between the two countries reached over US$6.4 billion, marking a 20% year-on-year increase, while exports to Vietnam saw a remarkable rise of more than 31%.
According to data from the General Department of Customs and Excise (GDCE), from January to October, the total import-export value between Cambodia and Vietnam was $6.419 billion, up 21.7% from $5.277 billion in the same period of 2023.
Vietnam is Cambodia's third-largest international trade partner, following China and the US.
Cambodia's exports to Vietnam amounted to $2.968 billion, an increase of 31.2%, while imports from Vietnam totalled $3.452 billion, a 14.4% rise. Cambodia's trade balance with Vietnam shows a deficit of $483.75 million, compared to a surplus of $753.84 million in 2023.
According to the GDCE, Vietnam is the country’s second-largest export market after the US and the second-largest source of imports, following China.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on Friday (Nov 22) that the favourable geographical location and strong diplomatic ties between the two countries have allowed cross-border trade to remain positive, even in the face of global challenges.
He added that Vietnam, with its larger manufacturing and processing capacity, primarily imports raw agricultural products from Cambodia, while exports to Cambodia consist of finished goods and machinery.
He stated, “As neighbouring countries, trade flows between the two will continue to show a positive trend in the future. Both countries also attract skilled labour to serve each other.”
Vanak explained that the trade imbalance with Vietnam is not a cause for concern, as it is common for certain countries to export more than they import.
Cambodia exports significant amounts of goods to countries like the US and EU but imports fewer goods in return.
However, he emphasised, “Cambodia must focus on improving both the quality and volume of its exports to meet international standards, thereby further enhancing its export capacity.”
To strengthen bilateral cooperation between the governments and people of the two countries, Tran Thanh Man, chairman of Vietnam’s National Assembly (NA), is leading a high-level delegation on a state visit to Cambodia from November 21-24.
During the visit, Man plans to meet with Cambodian NA president Khuon Sudary, Senate president Hun Sen and Prime Minister Hun Manet.
He will also visit former NA president Heng Samrin and Men Sam An, president of the Vietnam-Cambodia Friendship Association and the Vietnam-Cambodia Friendship Parliamentarians' Group.
Additionally, Man will participate in the Internal Capital Adequacy Assessment Process (ICAAP) and International Parliament for Tolerance and Peace (IPTP) meetings, which will be hosted by Cambodia.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), stated in October that the proximity and good political relations between the two countries have led to increasing trade and movement of people across the border.
He noted that Cambodia currently lacks adequate storage facilities and agricultural processing factories, leading many traders, both local and foreign, to purchase the country’s agricultural products during harvest seasons for resale in Vietnam.
He added, “The value of trade between the two countries will continue to grow. The actual value may exceed record levels. Vietnam remains a key market for Cambodia's agricultural products.”
According to Heng, major exports to Vietnam include rice, rubber, mangoes, sweet potatoes, corn, bananas, cashews and pepper.
In return, Vietnam exports construction materials, machinery, fuel, electrical and electronic equipment, fertilisers, spices and vegetables to Cambodia.
He also mentioned that aside from trade, tourism between the two countries has grown steadily each year.
In 2023, total trade between Cambodia and Vietnam reached $6.58 billion, a 7.3% increase from $5.61 billion in 2022.
Cambodia's exports were valued at $2.97 billion, up 37.1%, while imports from Vietnam totalled $3.61 billion, a decline of 8.9%.
Cambodia's trade balance with Vietnam shifted to a deficit of $639.62 million in 2023, compared to a surplus of $1.8 billion in 2022, according to the GDCE. - The Phnom Penh Post/ANN
