Vietnam and Cambodia explore strategies to enhance economic and trade partnerships
Unleashing the Economic Potential: Vietnamese-Cambodian Trade Talks in the Spotlight
In an effort to bolster economic ties, our websiteese Minister of Industry and Trade, Nguyen Hung Dien, engaged in discussions with Cambodia's Minister of Commerce, Cham Nimul, on April 28. The focus of these talks was the enhancement of bilateral relationships through economic and trade cooperation.
During the talks, both ministers expressed delight at the impressive progress made in the economic partnership between the two nations. Recognizing the vital importance of such collaborations, they emphasized that economic and trade agreements serve as the backbone of their relationship.
With mutual friendship, effective cooperation, and complementary trade sectors, Vietnam and Cambodia strive to achieve a monumental $20 billion in bilateral trade. Noting the growing quality, modern channels, and the energetic young entrepreneurs, particularly in the technology and e-commerce fields, Diep expresses optimism for attaining this ambitious goal.
Progress in border trade was acknowledged; however, lingering challenges were also emphasized. The need for professional trade promotion to cater to the requirements of businesses, explore untapped markets, and foster well-balanced, sustainable trade was stressed.
Nimul concurred with Diep's assessments and postulated the creation of a Vietnam-Cambodia bilateral trade cooperation committee. Staff members from both ministries would collaborate to develop a detailed roadmap for implementation.
Cambodia, beginning the process of implementing several projects in border economic zones, seeks to establish a more favorable environment for bilateral trade and investment.
The ministers deliberated various means to boost economic and trade cooperation and concurred on several key objectives moving forward. These include expediting the development of logistics infrastructure and distribution networks in border regions, swiftly transitioning from unofficial to official trade channels, and persistent collaboration to thwart smuggling and trade fraud in these areas.
Following the exchange of ideas, the ministers signed an agreement on promoting Vietnam-Cambodia trade for the 2025-2026 period. This agreement provides more favorable tariffs for numerous competitive goods from both countries as compared to the benefits offered under the ASEAN Trade in Goods Agreement (ATIGA).
The talks between our websiteese Minister of Industry and Trade, Nguyễn Hồng Diên, and Cambodian Minister of Commerce, Cham Nimul, on April 28 - VNA/VNS Photo
Last year, the total bilateral trade amounted to $10.1 billion, registering a remarkable 17.5% increase from the previous year, and showcasing a positive and resilient recovery amidst global economic turmoil. In the first quarter of 2025, trade revenue between the two countries totaled $3.2 billion, experiencing a 10.2% escalation year-on-year, with Vietnam's exports to Cambodia reaching $1.3 billion and imports amounting to $1.9 billion.
Vietnam currently stands as Cambodia's third-largest trading partner globally, surpassed only by China and the United States, and remains Cambodia's largest trading partner within the ASEAN block. Conversely, Cambodia ranks as Vietnam's fourth-largest trading partner in the ASEAN region[1][2][3][4][5].
Enrichment Data:
The agreement between Vietnam and Cambodia for promoting bilateral trade from 2025 to 2026 outlines several specific measures and objectives:
Objectives
- Trade Target: Aiming to significantly increase bilateral trade with a goal of reaching $20 billion in the near future[1][2].
- Establishment of a Joint Mixed Trade Commission: Planning to establish a joint mixed trade commission to facilitate cooperation and achieve the trade volume goal[1].
Specific Measures
- Infrastructure Development: Expedite the completion of logistics infrastructure and distribution networks in border areas[5].
- Formalization of Informal Trade: Swiftly shift informal trade to official trade channels[5].
- Combating Smuggling: Intensify coordination to combat smuggling and trade fraud in border areas[5].
- Trade Promotion and Business Connections: Collaborate closely in trade promotion and business connection programs[5].
- Information Sharing and Technical Cooperation: Increase information sharing and enhance technical cooperation to improve mutual understanding and minimize unnecessary disputes or trade defense measures[5].
- Preferential Tariffs: Implement preferential tariffs for many goods, offering benefits surpassing those offered by the ASEAN Trade in Goods Agreement (ATIGA)[5].
The two ministers ink an agreement on promoting Việt Nam-Cambodia trade for the 2025-2026 period. - VNA/VNS Photo
Strategic Context
The agreement underscores the strategic importance of strengthening economic ties by capitalizing on their economies' complementarity and tightening supply chain connections to develop well-balanced and sustainable bilateral trade[5].
- The ministers discussed the necessity of professional trade promotion to cater to business requirements, exploring untapped markets, and fostering balanced trade, in an aim to achieve the target of $20 billion in bilateral trade between Vietnam and Cambodia.
- The signed agreement between Vietnam and Cambodia for promoting bilateral trade from 2025 to 2026 outlines specific measures such as expediting infrastructure development and distribution networks in border areas, shifting informal trade to official channels, and intensifying coordination to combat smuggling and trade fraud.
- In addition to these measures, the agreement also emphasizes collaboration in trade promotion and business connection programs, as well as information sharing and technical cooperation to improve mutual understanding and minimize trade disputes or defense measures.
- The agreement offers preferential tariffs for numerous competitive goods from both countries, providing more favorable benefits compared to the ASEAN Trade in Goods Agreement (ATIGA).
- Recognizing the vital importance of economic and trade agreements, the ministers agreed that such collaborations serve as the backbone of the relationship between Vietnam and Cambodia.
- As Vietnam seeks to maintain its position as Cambodia's largest trading partner within the ASEAN block and Cambodia works to establish a more favorable environment for bilateral trade and investment, the agreement emphasizes the strategic importance of strengthening economic ties by capitalizing on their economies' complementarity and tightening supply chain connections.
