Vietnam’s exports to Cambodia exceeded US$3 billion last year, setting a record high in a decade and opening up opportunities for local firms to capitalise on untapped potential of the neighbouring market, statistics show.
In the past three years, the value of Vietnamese shipments to Cambodia increased continuously from US$2.2 billion in 2016 to US$2.77 billion in 2017 and US$3.4 billion in the first 11 months of 2018.VNA
According to the General Department of Vietnam Customs, during the January-November period last year, the export of steel, petroleum, and garment-textile products to Cambodia recorded significant increases and together accounted for the lion’s share of the country’s total, at 49.63%.
Notably, 1.2 million tonnes of steel products were exported to the market for over US$796 million, annual increases of 53.04 and 74.36%, respectively. Firms have been advised to continue coming up with business plans to boost construction material shipments to Cambodia.
Fruit export also soared to reel in US$2.4 million in the period, indicating a rosy outlook for the sector. Material plastic and timber-woodwork products also joined the upward trend, bringing in US$15 million and US$9.98 million, up 110.99 and 44.375% on year, respectively.
Recently, upbeat signals have led to a forecast that Vietnamese enterprises will have more chances to make gains from the Cambodian market.
Last year, the Cambodian Government introduced the Rectangular Strategy-Phase 4 which covers a priority of boosting economic development via increasing business activities with major partners and foreign direct investments, as well as improving international trade. It means Vietnam has favorable conditions to invest in the economy.
At the Vietnam – Cambodia business forum held in Hanoi on December 6 last year, Cambodian Prime Minister Hun Sen said the local government has adjusted the investment law to facilitate foreign investors. He added that it also put forth a series of measures to better the country’s business climate, which simplifies and automates customs procedures, and cuts official and unofficial fees to boost import-export.
Official statistics announced at the forum showed that as of November 2018, Vietnam had 210 investment projects in Cambodia with a combined registered capital surpassing US$3 billion. Among the 77 countries and territories worldwide, Vietnamese investors are pouring the third biggest sum of their capital in Cambodia.