Cambodia-Vietnam trade hits $1.4B Jan-Feb
Cambodia-Vietnam trade hits $1.4B Jan-Feb
The first two months of 2024 witnessed a significant surge in cross-border trade between Cambodia and Vietnam, according to the General Department of Customs and Excise (GDCE).
Between January and February, trade between the two nations reached $1.41 billion, a 30.4% increase from $1.08 billion in the same period of 2023.
The Kingdom’s exports to Vietnam totalled $801.6 million, an appreciable 63.2% increase from $491.18 million, while imports were valued at $612.66 million, a 3.2% rise from $593.56 million.
Cambodia’s trade surplus expanded to $188.94 million, moving out of a deficit which stood at $102.38 million during the same period of 2023.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post that bilateral trade between the two ASEAN neighbours has been positive since late 2023, largely due to the Kingdom’s agricultural exports.
Given the countries’ contiguous nature and the high volume of goods flow in border provinces, he suggested the actual trade amount was likely higher than recorded.
Heng speculated that trade volumes could increase further with the completion of the Phnom Penh-Bavet Expressway.
“I believe that the value of Cambodian-Vietnamese trade will continue to increase, especially as many Vietnamese investors are now investing in Cambodia, particularly near the Vietnam border,” he stated.
Cambodia primarily exports rice, rubber, cashew nuts, cassava, corn, bananas, mangoes, tobacco and natural resources to Vietnam, while imports from Vietnam include construction materials, machinery, fuel, electrical equipment, electronic components, agricultural fertiliser, spices, vegetables and fruits, among others, as per the GDCE.
Heng noted that, besides trade, the two countries also enjoy strong tourism relations.
The Ministry of Tourism reported that in 2023, Cambodia welcomed 5.45 million international visitors, a 139.5% increase from 2022, including 1.02 million from Vietnam, marking a 119.8% increase.
Ky Sereyvath, an economics researcher at the Royal Academy of Cambodia, commented on the Fourth Industrial Revolution, or Industry 4.0, at a roundtable discussion on the 2024 Economic and Real Estate Situation, organised by the Club of Cambodian Journalists (CCJ) on March 11.
He emphasised that Cambodia must develop its workforce and production capacity to attract and benefit from the arrival of more technologically advanced factories and enterprises.
He said boosting domestic production is seen as vital not only for ensuring food security but also for enhancing the country’s capability to export goods to international markets.
“This is the stage where Cambodia should transition from sectors with low value added to high value-added industries,” he stated.
Sereyvath pointed out that Cambodia still possesses considerable potential to develop its production chain and process its resources to enhance exports.
He said the country presently exports many agricultural products to neighbouring countries, including Vietnam and Thailand.
According to the GDCE, total trade volume between Cambodia and Vietnam amounted to $6.58 billion in 2023, a 7.3% increase from $6.13 billion in 2022.
Cambodia’s exports were valued at $2.97 billion, rising by 37.1%, while imports from Vietnam totalled $3.61 billion, a decrease of 8.9%. Cambodia’s trade deficit stood at $639.62 million last year, markedly lower than the $1.8 billion recorded in the same period of 2022, as per the GDCE.
