At a meeting in Hanoi to update businesses on market developments and opportunities in Cambodia, Phu underscored that trade promotion is among the keys to delivering the US$20 billion in trade revenue with the neighbouring country, urging industry associations, localities, and enterprises to engage in the promotion initiatives to accelerate exports to this market.

According to Ho Thi Khanh Linh, an official from the MoIT’s Department of Foreign Market Development, two-way trade topped US$7 billion in the first seven months of the year, up 16.3% against the same time last year. Vietnam’s exports to Cambodia hit US$3.2 billion, rising 5.1%, while imports rose 28.1% to US$3.8 billion. She pointed out several challenges to bilateral trade, including inadequate warehousing and logistics facilities and a lack of border markets. Much of the cross-border trade is carried out through informal channels, posing risks to tax revenue, quality control issues, and consumer protection. Smuggling, trade fraud, and intellectual property violations, particularly involving sugar, cigarettes, and e-cigarettes, also distort domestic markets and undermine legitimate trade activities.

Meanwhile, Hoang Hoai Hanh from the MoIT’s Agency of Foreign Trade identified additional obstacles slowing bilateral trade growth, such as limited border connection routes, particularly at auxiliary gates and openings, and restricted access to information on trade policy environments and cooperation opportunities.

Secretary General of the Vietnam Logistics Association (VLA) Tran Chi Dung said transshipment remains hampered by complex licensing procedures, which require precise origin and destination specifications, which are not provided during the negotiation phase. He proposed establishing a ready trade corridor to shorten negotiation times and prevent order stagnation that forces costly shifts from sea to air transport, helping cut logistics costs.

The VLA has prepared comprehensive cross-border e-commerce solutions, integrating transport, trade, and payment systems to promote both land transport corridors and digital pathways for sustainable trade growth.

To boost the application of science, technology and e-commerce in trade between Vietnam and Cambodia, Hanh suggested enhanced coordination between agencies of both sides, improving customs and quarantine procedures, reducing clearance times, and lowering transaction costs. It is important to encourage companies to diversify their exports by focusing on processed goods and high-value products that cater to Cambodian consumers. She emphasised the significance of promoting trade through fairs and exhibitions, which can help businesses expand their markets and build their brands.

Vietnamese trade counsellor in Cambodia Do Viet Phuong highlighted investment as a strategic channel to strengthen the foothold of Vietnamese products in the market. Five Vietnamese banks are operating in Cambodia, providing capital access for trade and investment activities. However, success requires quality products backed by thorough market research to meet Cambodian demand.

Vietnam bolsters investment, economic cooperation in northeastern Cambodia

Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.