Cambodia-Vietnam $20B trade target ‘achievable’, experts say

Cambodia-Vietnam $20B trade target ‘achievable’, experts say

Experts tracking economic trends suggest that should the current growth rates continue, the ambitious $20 billion target is within reach. Both countries have been steadily expanding trade in agriculture, garments, and processed goods.

Cambodia and Vietnam are witnessing robust growth in their bilateral trade, with both nations aiming to reach a trade volume of $20 billion in the coming years.

In the first seven months of 2025, trade between the two countries rose to $4.94 billion, representing a 7.5 percent increase compared to the same period last year, according to the latest report from the General Department of Customs and Excise (GDCE).

The GDCE reported that Cambodia’s exports to Vietnam were valued at $2.43 billion, up 10.4 percent, while imports from Vietnam reached $2.51 billion, an increase of 4.8 percent.

Experts tracking regional economic trends suggest that, if current growth rates continue, the ambitious $20 billion target is within reach. Both countries have been steadily expanding trade in agriculture, garments, and processed goods. With supportive policies and improving connectivity, the target is realistic.

A senior policy analyst said that the ambitious goal of reaching $20 billion in trade between Cambodia and Vietnam is possible if both countries show determination and prioritise quality in their exchanges.

Seun Sam, Policy Analyst at the Royal Academy of Cambodia (RAC), told Khmer Times yesterday that Cambodia-Vietnam trade has already shown strong momentum this year. “Since the beginning of the year, trade between Cambodia and Vietnam has already reached $8 billion,” he said.

He added that regional dynamics could also play a role in boosting bilateral trade. “Cambodia and Thailand are experiencing border tensions. Some Thai goods are difficult to flow into Cambodian territory. So if Vietnam thinks that the Cambodian market is important and supplies instead of Thai goods, it is possible,” he explained.

Beyond quantity, Sam emphasised the importance of ensuring product standards to build consumer confidence. “Another important thing is that both Cambodia and Vietnam should not only think about quantity, but also consider quality. Cambodian people currently check the quality of goods very carefully for health and safety before using them,” he said.

He noted that while Vietnam has proven its capacity to meet international standards in markets such as the United States and Europe, some of the goods sent to Cambodia appear to be of lower quality.

“To receive support from Cambodia, Vietnamese goods must pass strict quality checks. We know that Vietnamese products exported to the US or Europe are of good quality. In contrast, some goods imported to Cambodia seem to be of poor quality, which leads to a loss of confidence,” he cautioned.

For Sam, quality assurance is the key to building long-term trust. “If Vietnam truly has the will and ambition to expand trade with Cambodia or replace Thai goods in the market, it must consider quality because Cambodia is also a consumer country. Quality brings confidence, and when consumers have confidence, it will lead to increased imports,” he said.

The growth comes amid broader efforts by Cambodia and Vietnam to strengthen economic cooperation, including initiatives to facilitate cross-border trade and investment. Key sectors driving the increase include agricultural products, textiles, and electronics, which remain in high demand on both sides.

Government officials from Phnom Penh and Hanoi have emphasised the importance of maintaining strong trade relations, citing mutual benefits in boosting employment, regional supply chains, and overall economic resilience.

While challenges remain, such as logistics and regulatory hurdles, experts are optimistic that enhanced collaboration, particularly under ASEAN trade frameworks, will continue to support the trajectory towards the $20 billion goal.

khmertimeskh