Vietnam has notably risen to become Cambodia’s second-largest trading partner at the outset of 2024, showcasing a significant leap in bilateral trade. According to the General Department of Customs and Excise (GDCE), the exchange of goods between the two neighboring countries exceeded $670 million in January 2024 alone, marking a 41.5% increase from the previous year’s $478.76 million. This surge propelled Vietnam ahead of the United States and just behind China in Cambodia’s ranking of key trading partners.
The trade dynamics between Cambodia and Vietnam have seen a remarkable shift, particularly in Cambodian exports which soared to $373.06 million in January 2024, more than doubling from $172.23 million in the corresponding month of 2023. Conversely, Vietnamese exports to Cambodia saw a marginal decline, dipping slightly to $304.57 million. This upswing in Cambodian exports has not only narrowed the trade deficit but also resulted in a surplus of $68.49 million for the month.
Lim Heng, Vice-President of the Cambodia Chamber of Commerce, attributes this growth to the strengthening of diplomatic relations and increased trade, especially in agricultural products. He highlighted the significant role of cross-border trade agreements in fostering this growth, suggesting a bright future for trade between these ASEAN nations.
Agricultural commodities, including paddy rice, rubber, cashews, and various fruits, dominate Cambodia’s exports to Vietnam, reflecting the country’s growing production capacity and a more balanced trade equation. In contrast, Cambodia’s imports from Vietnam are diverse, ranging from construction materials and machinery to consumer goods like spices, vegetables, and fruits.
Chea Chandara, President of the Logistics and Supply Chain Business Association in Cambodia, pointed out the role of improved border facilities and streamlined processes in this trade expansion. He anticipates that the forthcoming expressway connecting Phnom Penh to Bavet, on the Vietnamese border, will further enhance trade and tourism ties between the two countries.
With a recorded trade volume of $6.58 billion in 2023, showing a 7.3% increase from the previous year, and a significant reduction in Cambodia’s trade deficit, the trajectory of Cambodia-Vietnam trade relations appears promising, driven by mutual investments in infrastructure and a shared commitment to facilitating cross-border commerce.
Source: Phnompenh Post
