Cambodia shifts gears, turns to Vietnam to spur border trade

Cambodia shifts gears, turns to Vietnam to spur border trade

It is vital for both sides to strengthen trade ties, particularly given recent disruptions in Cambodia’s trade with Thailand.

Cambodia and Vietnam Thursday held extensive talks to boost bilateral trade, a move largely seen as a strategic shift amid the ongoing border tensions with Thailand.

Mr Hun Sen, President of the Cambodian People’s Party (CPP), and Tô Lâm, General Secretary of the Communist Party of Vietnam (CPV), discussed ways to spur bilateral trade.

The discussion, attended by senior officials from both countries via video conference, was announced to the public by Chea Thyrith, Spokesperson of the CPP, in Phnom Penh on August 14.

According to Thyrith, the CPP and CPV leaders engaged in a major goal of achieving $20 billion in bilateral trade in the near future, underlining joint efforts to promote sustainable economic growth and increased trade and investment flows.

During the meeting, Senate President Hun Sen emphasised that the robust Cambodia-Vietnam relationship reflects good neighbourliness, traditional friendship, comprehensive cooperation and long-term stability—foundations for promoting economic, trade and investment cooperation across multiple sectors.

He spoke about strengthened party-level relations from grassroots to top levels, noting enhanced government cooperation and continuous progress in legislative collaboration, which have created a stable framework for economic development, trade facilitation and cross-border investment initiatives.

Mr Hun Sen highlighted the high volume of trade between the two neighbouring countries, which reached approximately $7 billion in the first seven months this year, with Cambodia exporting $3.8 billion to Vietnam and importing $3.2 billion, demonstrating the Kingdom’s growing export capacity.

He noted that Vietnam is Cambodia’s third-largest export market, reflecting untapped trade potential between neighbouring countries and underscoring how peaceful, friendly and mutually beneficial border relations support economic growth and business opportunities on both sides.

Based on the Vietnam News Agency, Lâm congratulated Cambodia on its socio-economic development achievements in recent years under the leadership of the CPP and the Royal Government, noting these efforts have improved the livelihoods of the people. He also welcomed the positive progress made by Cambodia and Thailand in addressing border-related issues, emphasising cooperation and enhance regional stability.

Regarding international and regional matters, he stressed that disputes should be resolved peacefully under international law and norms, highlighting the importance of ASEAN’s central role in promoting peace, stability, cooperation and sustainable prosperity across the region.

Speaking to Khmer Times, Seun Sam, a policy analyst at the Royal Academy of Cambodia (RAC), noted that under the leadership of Senate President Hun Sen, the relations with Vietnam remain close and cooperative.

He emphasised that despite significant economic gaps between the two countries, it is vital for both sides to strengthen trade ties, particularly given recent disruptions in Cambodia’s trade with Thailand.

Sam highlighted that several Cambodian provinces along the Vietnam border, including Kratie, Kampong Cham, Prey Veng, Kandal and Takeo, heavily rely on exporting raw agricultural products such as rice, cassava, cashew nuts and rubber.

At the same time, Vietnam supplies Cambodia with vegetables, fruits, fish and animal meats, creating a mutually beneficial cross-border trade system that ensures a steady flow of essential goods for local consumption, he said.

Sam continued, “The current tensions with Thailand have prompted many Cambodian citizens to boycott Thai products. This situation presents a strategic opportunity to maintain sufficient goods for domestic use while boosting trade and economic cooperation with Vietnam.”

However, he stressed the importance of strict quality control, urging customs departments along the border to inspect all incoming goods.

khmertimeskh