Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia to shore up trade with Vietnam

Cambodia to shore up trade with Vietnam

Content image - Phnom Penh Post
The Vietnamese side of the Phnom Den-Tinh Bien border gate in An Giang province’s Tinh Bien district, across from Takeo province’s Kiri Vong district in the Kingdom. BIENPHONG.COM.VN/VIET NAM NEWS

Cambodia to shore up trade with Vietnam

The Vietnamese government has greenlighted an infrastructure development strategy in a move that could bring it a step closer to a target of $5 billion in annual bilateral trade with Cambodia set by the prime ministers of both countries.

Vietnamese Prime Minister Nguyen Xuan Phuc issued a plan to implement a Memorandum of Understanding (MoU) on the development and connection of border trade infrastructure between the two ASEAN neighbours, the State-controlled Vietnam News Agency (VNA) reported on Friday.

VNA said: “The implementation started on August 19 and will last until October 2022. If the MoU is extended, the plan will continue to be carried out for three more years.

“In the two years 2021 and 2022, they will carry out surveys for the building of at least a border market; run activities to encourage Vietnamese and Cambodian businessmen to invest in border trade infrastructure; increase related trade and investment promotion events; and support firms in introducing and distributing goods at border markets, trade centres and trade fairs.”

A source at the Vietnamese embassy in Phnom Penh told The Post on Sunday that the Vietnamese government granted the technical and financial assistance required to set up a border market Kingdom-side.

“Our government has just passed a law that agreed in principle for [Vietnam’s] Ministry of Industry and Trade to help the Cambodian side to build a border market. Funding will be covered in full by Vietnamese grant aid,” said the source, hinting that the southeastern Svay Rieng province could be the chosen host for the market.

During Cambodian Prime Minister Hun Sen’s visit to Hanoi in October, the two countries signed several MoUs on cooperation.

Four were aimed at reinforcing bilateral investment and trade cooperation, trade connectivity infrastructure along the border, investment synergy and collaboration in the electric power sector.

The source said Covid-19-fuelled fears have not deterred the Vietnamese government’s resolve to keep its borders open to the exchange of goods.

“Our government aspires to ensure that border crossings remain open as usual to goods trade while enforcing strict measures to control the disease, thereby honouring the two countries’ commitments on developing trade facilities along the border and exchanging information on the pandemic,” the source added.

Cambodian Ministry of Commerce spokesman Seang Thay could not be reached for comment.

The Kingdom’s exports to Vietnam slipped 7.5 per cent to more than $592 million in the first seven months of this year while imports contracted 3.7 per cent to over $2.395 billion, data from the embassy show.

The two countries share a 1,137km land border which passes through nine Cambodian provinces – Kampot, Takeo, Kandal, Prey Veng, Svay Rieng, Tbong Khmum, Kratie, Mondulkiri and Rattanakiri and ten Vietnamese provinces of Kien Gian, An Giang, Dong Thap, Long An, Tay Ninh, Binh Phuoc, Dak Nong, Dak Lak, Gia Lai and Kon Tum.

MOST VIEWED

  • WHO: Covid in Cambodia goes into new phase

    The World Health Organisation (WHO) in Cambodia said that Cambodia has reached a new phase of the pandemic with “decreasing case numbers, high vaccination coverage and a more transmissible circulating variant threatening a hidden surge”. In a press release on September 6, the WHO said that

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • International air visitor arrivals dip 93%

    The number of foreign tourists entering Cambodia through the Kingdom’s three international airports witnessed a sharp 92.5 per cent year-on-year decline in the first seven months of this year, according to the Ministry of Tourism. The airports handled 51,729 international tourists in the January-July period versus

  • School reopening ‘offers model for other sectors’

    World Health Organisation (WHO) representative to Cambodia Li Ailan said school reopening process should be used as a role model for reopening other sectors currently mothballed by the Covid-19 pandemic. Li strongly supports the government’s decision to reopen schools, saying it is a decision

  • Covid jab drive for 6-11 age group to begin Sept 17

    Prime Minister Hun Sen has permitted Covid-19 vaccinations for over 1.8 million children aged 6-11 across the country from September 17 in order for them to return to school after a long hiatus. Hun Sen also hinted that vaccinations for the 3-6 age group will follow in

  • Is Cambodia’s microfinance sector running its course?

    Economic growth and the strength of the banking system might have prompted a slow decline of the microfinance segment that has been raising a population ‘The MFI business model is over,” opined David Van, a Cambodian investment expert, recently. He felt that in a couple