Vietnam, Cambodia create new impetus for relations

Vietnam, Cambodia create new impetus for relations

Prime Minister Pham Minh Chinh recently led a high-ranking Vietnamese delegation to visit the Kingdom of Cambodia. The visit is expected to create new impetus for comprehensive bilateral cooperation.

Deepening bilateral cooperation

The visit took place in the context of the 55th anniversary of Vietnam-Cambodia diplomatic relations. PM Chinh and his Cambodian counterpart Samdech Techo Hun Sen reviewed the overall results of bilateral cooperation and discussed measures to make bilateral relations more substantial, effective and reliable.

Vietnamese PM Pham Minh Chinh (first row, left) and his Cambodian counterpart Samdech Techo Hun Sen (first row, right) attend the Vietnam-Cambodia investment and trade promotion forum

The visit marked the resumption of comprehensive cooperation after a three-year interruption due to the COVID-19 pandemic, especially in trade, tourism and fields significantly contributing to economic recovery of the two countries. The two sides agreed to promote joint efforts to build a self-sufficient economy capable of withstanding adverse impacts of global changes.

Cambodia is the host of ASEAN meetings and the bloc’s meetings with partners this year, while Vietnam holds an important position in multilateral relations. The visit offered the two premiers a chance to exchange views on regional and global issues, as well as to support each other in multilateral forums.

The two leaders affirmed their determination to strengthen and further develop the good neighborly relationship, traditional friendship and comprehensive cooperation between Vietnam and Cambodia.

The two PMs also emphasized the importance of border trade and economic cooperation in areas adjacent to borders and border crossings. During the visit, the two sides signed the Vietnam-Cambodia Border Trade Agreement. PM Chinh asked the Cambodian government to create more favorable conditions for Vietnamese companies to invest in long-term business in Cambodia for mutual benefit.

The two PMs witnessed the signing of 11 documents, including a memorandum of understanding (MoU) on types and quantity of commercial motor vehicles for implementation of the agreement and the protocol between Vietnam and Cambodia on road transportation; an MoU on agricultural cooperation; an agreement on border trade; an MoU on cooperation in renovation of finance and payment systems; and an MoU between Viettel and the Cambodian Ministry of Post and Telecommunications.

PM Pham Minh Chinh praises the achievements of Metfone, a Cambodia-based investment project of Viettel

Increasing economic connectivity

The two leaders also attended a Vietnam-Cambodia investment and trade promotion forum jointly held by the Vietnamese Ministry of Planning and Investment, the Council for the Development of Cambodia, and the Cambodian Ministry of Commerce.

Forum participants discussed the results of investment and trade between the two countries and proposed measures for increased cooperation in these fields. The Cambodian side also introduced the country’s foreign investment attraction mechanisms and policies and answered questions related to difficulties facing companies investing and trading in Cambodia.

Vietnamese investment registered in Cambodia has exceeded US$2.93 billion. Cambodia ranks second among 78 countries and territories in which Vietnamese companies invest. Meanwhile, Vietnam is the largest ASEAN investor in Cambodia and ranks fifth among countries with direct investment in Cambodia.

Vietnam currently is one of Cambodia’s top three trading partners. In 2021, bilateral trade reached US$9.64 billion, up 79.1 percent from 2020. In the first nine months of 2022, bilateral trade reached US$8.45 billion, up 16.7 percent year-on-year, and is expected to exceed US$10 billion by year’s end.

Bilateral trade has been gradually balanced. Cambodian exports to Vietnam have increased strongly, reflecting improved manufacturing capacity.

VietNam Economic News