Business and trade volume between Cambodia and Vietnam is anticipated to grow, as representatives of the Vietnam-Cambodia Business Association (VCBA) have committed to promoting investment opportunities in the Kingdom to Vietnamese investors.
The pledge was made by VCBA president Leng Rithy during a meeting where he led delegates from 16 companies, most of which are actively investing in Cambodia, to engage with Sun Chanthol, deputy prime minister and first vice-president of the Council for the Development of Cambodia (CDC), at the council’s headquarters in Phnom Penh on March 6.
Rithy stated that the association’s members are keenly interested in Cambodia’s rapid development, particularly the efforts of the government in the new legislature.
He mentioned that in the past, he and member companies have shared their experiences in investing in agricultural sectors such as rice and rubber in concert with Cambodian farmers and investors.
He asserted that through effective collaboration with the council, the association is committed to enhancing the visibility of Cambodia’s financing opportunities to a broader spectrum of Vietnamese investors.
“VCBA will work with the CDC to showcase the Kingdom’s potential to financiers in Vietnam, with the aim of attracting them to various Cambodian sectors, especially agriculture,” he stated.
In response, Chanthol expressed his gratitude to all investors who have contributed to Cambodia’s economy and expressed optimism for further growth from existing firms in the country.
He highlighted that Cambodia currently represents a promising investment destination owing to its peaceful environment, robust economic stability, investor-friendly laws and well-developed transportation infrastructure.
Established in 2018, VCBA now boasts over 100 member companies. The group is dedicated to fostering the Vietnam-Cambodia business relationship, enhancing human resource development, education, vocational training and trade, as per the association.
Chea Chandara, president of the Logistics and Supply Chain Business Association in Cambodia (LOSCBA), told The Post recently that, as a nation sharing close borders and maintaining strong diplomatic relations with Vietnam, the Kingdom has seen a consistent increase in import-export activities and the inflow of direct investment from the Vietnamese.
He explained that cross-border transport operations are regularly conducted, with Cambodia exporting substantial quantities of agricultural produce to Vietnam, such as paddy rice, rubber, cashew nuts, cassava, corn, bananas, mangoes, tobacco and natural resources.
He said imports from Vietnam encompass a diverse array of products including food, daily necessities, machinery, electrical equipment, electronic components, chemical fertilisers and construction materials.
“The momentum of exports and imports between the two countries has been steadily increasing, and the number of Vietnamese investors coming to do business in Cambodia has also risen,” he stated.
According to the General Department of Customs and Excise (GDCE), trade volume between the two ASEAN neighbours reached $6.58 billion in 2023, marking a 7.3% increase compared to 2022.
Cambodia’s exports were valued at $2.97 billion, showing a marked rise of 37.1%. Imports from Vietnam reached $3.61 billion, a decrease of 8.9%.
The Kingdom’s trade deficit with Vietnam was approximately $639.62 million in 2023, a notable reduction from the $1.8 billion recorded in 2022, as per the GDCE.