Kingdom’s trade with Vietnam crosses $7 billion
Kingdom’s trade with Vietnam crosses $7 billion
Trade between Cambodia and Vietnam reached $7.08 billion in the January to November period of the year, a rise of 20.6 percent, even as the neighbouring country consolidated its position as the second-biggest export market of the Kingdom, next only to the United States.
According to the trade data, released by the General Department of Customs and Excise (GDCE), recently, Cambodia’s exports to Vietnam saw a rise of 26.3 percent and reached $3.29 billion.
The Kingdom’s imports from the neighbouring country also increased, by 16 percent and touched $3.79 billion during the period, constituting 13.8 percent of Cambodia’s total exports.
Cambodia mainly exports agricultural products to Vietnam, including rice, rubber, cashews, cassava, corn, bananas, mangoes and tobacco. Main imports from Vietnam include construction materials, machinery, fuel, electrical and electronic equipment, fertilizers, animal feed, vegetables and fruits.
Traditionally, most of Cambodia’s cashew exports go to Vietnam. In 2023, the Kingdom exported 618,000 tonnes, constituting 94.2 percent of its total exports of the commodity, to Vietnam, a report of the Cashew Nut Association of Cambodia showed.
Cambodia and Vietnam are also trying to raise the annual bilateral trade to over $10 billion in the near future and also to $20 billion subsequently in the coming years.
According to Vichet Lor, Vice-President of Cambodia Chinese Commerce Association (CCCA), trade between Cambodia and Vietnam is rising due to the change in economic trends as a result of political rivalry and geopolitical tensions between the US and China.
Vietnam has steadily reaped dividends and achieved significant economic growth due to the current international situation in recent years, he noted.
“This changing shift in international trade trends has allowed Cambodia to make use of its geographical proximity to Vietnam for its advantage and maximize its trade potential by streamlining customs procedures, reducing clearance times and improving overall trade efficiency with the neighbour,” Vichet said.
According to him, the international status quo will remain for the foreseeable future with the re-election of Donald Trump to the White House, and henceforth Cambodia’s trade with Vietnam is set for further growth in the years to come.
As of September this year, Vietnam has 208 investment projects in Cambodia with a total registered capital of $2.91 billion, making it one of the 10 largest investors in Cambodia.
Similarly, Cambodia has 35 investment projects in Vietnam with a total registered capital of $75.76 million.
China remained the biggest trading partner of Cambodia in the January-November period of 2024 with the trade between the two reaching $13.76 billion. China is also the third biggest export market for Cambodia, after the US and Vietnam, with the exports touching $1.6 billion, a rise of 22.3 percent, compared to the same period last year.
Cambodia’s trade with the US, meanwhile, reached $9.3 billion in the January to November period this year, rising 11.2 percent, compared to the same period last year.
The US remained the biggest export market of the Kingdom with a share of 37.9 percent. The shipments to the US reached $9.3 billion in the first 11 months of this year.
