In particular, since the signing of the Viet  Nam-Cambodia Economic and Trade Agreement (in 1998), trade and investment relations between the two countries have developed strongly, playing an important role in promoting the socio-economic development of each country, while also creating conditions to consolidate and strengthen comprehensive cooperation between the two sides. Therefore, the State visit to Cambodia by General Secretary To Lam is expected to open a new phase of deeper and closer cooperation between the two countries.

Positive growth

According to the Department of Foreign Market Development ( Ministry of Industry and Trade ), in recent times, trade relations between Viet  Nam and Cambodia have continued to grow positively, affirming their role as one of the important pillars of bilateral cooperation, especially in the context of a volatile global and regional economy.

Viet  Nam is currently Cambodia's third largest trading partner globally (after China and the United States) and its largest partner in ASEAN. Conversely, Cambodia is Viet  Nam's fifth largest trading partner in ASEAN (after Thailand, Malaysia, Indonesia, and Singapore). By 2025, bilateral trade is projected to reach US$11.3 billion, a 12% increase compared to 2024; of which, Viet  Nam's exports to Cambodia are expected to reach US$5.67 billion; and Viet  Nam's imports from Cambodia are expected to reach US$5.66 billion, an 18.4% increase compared to 2024.

The import and export structure between the two countries is highly complementary, with little direct competition. Cambodia supplies Viet  Nam with input materials such as cashew nuts, rubber, cassava, wood, and fruits and vegetables. Meanwhile, Viet  Nam exports many essential products for consumption and production to Cambodia, including textiles and garments; various types of iron and steel; raw materials and accessories for textiles, garments, leather, and footwear; fertilizers; paper and paper products; animal feed and raw materials; plastic products; machinery, equipment, tools, and spare parts; chemicals; confectionery and cereal products.

To promote bilateral trade, the Ministry of Industry and Trade has implemented many activities to facilitate and promote trade. Notably, on April 28, 2025, the Vietnamese Ministry of Industry and Trade and the Cambodian Ministry of Commerce signed an Agreement to promote bilateral trade for the period 2025–2026; which grants many special tariff preferences for each side's strong products with higher preferential rates than the ASEAN Trade in Goods Agreement (ATIGA), creating further impetus towards the goal of increasing bilateral trade turnover to US$20 billion.

Furthermore, in 2025, the Ministry of Industry and Trade will also closely coordinate with Cambodian authorities to organize more than 15 trade promotion activities, business networking events, and brand promotion events for Vietnamese goods in Cambodia. Some notable activities include two delegations of Vietnamese businesses to Cambodia for trade networking (April and August 2025); a Viet  Nam-Cambodia Business Networking Conference in Ho Chi Minh City (July 2025) and in Tay Ninh province (September 2025); a Viet  Nam Goods Fair in Phnom Penh, Cambodia, and a Viet  Nam-Cambodia Border Trade Networking Forum in An Giang province (December 2025)...

In terms of investment, Viet  Nam has 229 active investment projects in Cambodia with a total registered capital of US$2.94 billion, ranking second among Viet  Nam's 85 overseas investment destinations. Notably, Vietnamese businesses' investments are present in almost all important economic sectors and fields in Cambodia, with many projects operating stably and effectively, making a significant contribution to Cambodia's socio-economic development.

Mr. Do Viet Phuong, Commercial Counselor of the Vietnamese Trade Office in Cambodia, stated: Based on the foundation of good political relations, Viet  Nam-Cambodia trade relations have developed over time and achieved encouraging results. Trade turnover has grown steadily.

While bilateral trade between the two countries reached approximately US$1.8 billion in 2010, this figure exceeded US$3.5 billion in 2013. In 2019, for the first time, bilateral trade reached US$5 billion. Just two years later, in 2021, this figure surpassed US$10 billion. By 2025, bilateral trade is projected to grow by 11.7% compared to the same period in 2024, reaching US$11.33 billion (an increase of US$1.2 billion).

Throughout its development, the Vietnamese business community has been highly flexible, dynamic, and dedicated to promoting business and investment in Cambodia, continuously growing and making significant contributions to strengthening economic and trade cooperation between the two countries. The presence and stable development of many Vietnamese businesses in the Cambodian market demonstrates a systematic, cautious, yet correct approach, persistently staying close to the market, providing Cambodian consumers with high-quality products and services at reasonable prices, and contributing to the social welfare of the host country.

Over time, businesses from both sides have forged strong bonds for the common benefit of the business communities on both sides. Vietnamese businesses have gained a deep understanding of Cambodian culture, business practices, and consumer needs, enabling them to develop appropriate market access strategies to increase market share and expand their distribution networks. This has helped build trust with customers and partners, leading to increasingly well-known and recognized names.

It is noteworthy that many businesses have persistently invested long-term, focusing on product quality, after-sales service, and building a brand image associated with resilience and reliability—factors that are very important in the Cambodian market. Therefore, it can be affirmed that the Vietnamese business community in Cambodia has established a certain foothold and a solid foundation for the next stage of development.

Expanding cooperation

Sharing insights on the core advantages that help Vietnamese goods and businesses easily access and expand their market share in Cambodia, trade experts stated: Firstly, similarities in culture, consumer habits, and income levels make it easier for products to be accepted by the local population.

Furthermore, the favorable geographical location, lower transportation costs, and convenient trade due to bordering Cambodia help Vietnamese goods reach Cambodia quickly and at competitive prices. Moreover, Cambodian consumers tend to favor certain categories of Vietnamese goods due to familiarity, consistent quality, and reasonable prices, especially consumer goods, agricultural products, food, and agricultural inputs.

Furthermore, Viet  Nam has an advantage in labor and production costs compared to many countries, allowing businesses to offer better prices. In particular, both Viet  Nam and Cambodia are ASEAN members, benefiting from the ASEAN Trade in Goods Agreement (ATIGA), which reduces tariffs and facilitates easier access for Vietnamese goods to the market.

Moreover, Vietnamese goods are increasingly improving in quality, meeting international standards and consumer demands. Vietnamese businesses are able to adapt quickly and flexibly in adjusting designs, prices, and business strategies for each specific market. On the other hand, both sides actively and regularly organize trade promotion programs, investment support, trade fairs, conferences, and seminars to connect bilateral businesses in order to seek opportunities and business partners.

According to Counselor Do Viet Phuong, the increasingly prominent presence of Vietnamese businesses in Cambodia and Southeast Asia shows that Vietnamese businesses have gradually improved their competitiveness, not only in the domestic market but also in the regional market. Over the years, the Vietnamese business community has proactively and flexibly adapted to fluctuations in the global and regional markets, daring to think outside the box, investing effectively, continuously improving production and international trade capabilities, quickly and efficiently accessing markets and partners, and making a significant contribution to the country's foreign trade growth. In particular, Vietnamese businesses can absolutely build a strong brand and a sustainable foothold abroad if they have the right strategy, long-term investment, thorough research, and respect for partners and local markets.

To more effectively exploit the potential for bilateral economic and trade cooperation, the leaders of the Ministry of Industry and Trade emphasized that both sides need to continue reviewing, refining, and effectively implementing signed agreements, facilitating trade and connecting border infrastructure. At the same time, they should promote trade in a substantive manner, focusing on sectors with complementary advantages such as agricultural products, processed foods, construction materials, machinery and equipment, consumer goods, and agricultural supplies.

This also involves strengthening administrative procedure reforms, promptly removing bottlenecks in trade and border trade activities, especially regulations related to administrative procedures, fees at border gates, and licensing procedures for key import and export items. Furthermore, it requires increased investment, upgrading, and synchronous connection of border gate infrastructure, border trade infrastructure, and warehousing and logistics centers between the two countries, ensuring smooth trade routes and networks of warehouses, distribution centers, and transshipment hubs. In particular, both sides need to promote negotiations to increase the quota of intermodal transport permits for commercial vehicles crossing the border, while strengthening coordination in combating smuggling and trade fraud along the entire border.

Source: Tin Tuc News

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