VIETNAM, CAMBODIA EMBRACE STRONG TIES
Trade volume set to hit US$5.2b annually, says Vietnamese ambassador to Cambodia
VIETNAM’S economic relationship with Cambodia has grown stronger over the years and the two countries’ trade volume is expected to reach US$5.2 billion annually.
Vietnamese ambassador to Cambodia Vu Quang Minh said the figure exceeded the US$5 billion target set previously by the prime ministers of the two countries.
The Phnom Penh Post said the total trade volume for 2018 reached US$4.704 billion, up almost 24 per cent, from 2017.
The trade volume during the first 11 months of last year reached US$4.8 billion, up 13.8 per cent, compared with 2018.
Minh said there were 214 registered projects by Vietnam in Cambodia, worth US$3.074 billion. Of these, 176 were ongoing with a total registered capital of US$2.77 billion.
In the first five months of last year, the Cambodian government approved three new projects with a total registered capital of US$530,000.
A further three projects adjusted their commitments, increasing capital investment to US$37.5 million in total.
As a result, Vietnam is Cambodia’s third largest trading partner with firms investing up to US$50 million as of September last year.
Last month, Prime Minister Hun Sen called for more Special Economic Zones (SEZ) along the Cambodia-Vietnam border so as to attract investments.
“We have to transform the border, which was ravaged by war into the place for trade, investment, peace, cooperation and development.
“I want more SEZs to be established along the CambodiaVietnam border to attract Vietnamese investors and (support) the export market. If we develop more (SEZs), we will be able to process agricultural products into finished goods for export.”
Minh said Vietnamese investments focused on the agricultural, banking, telecommunications and manufacturing sectors.
“Investments from Vietnamese firms in Cambodia have contributed significantly to the economic development and social security of Cambodia,” he said.
Minh said Cambodia had 21 investment projects in Vietnam with a total registered capital of nearly US$64 million — ranking number 54 among 132 partners.
He said Vietnam and Cambodia had signed several agreements to promote economic trade. They include the Double Taxation Accord and the Vietnam — Cambodia Transport Cooperation Strategy for 2018-2025.
In a bid to bolster tourist visits, Vietnam’s National Administration of Tourism and Cambodia’s Tourism Ministry signed a memorandum of understanding to boost tourism between the two countries.
Angkor Air has also launched direct flights from Phnom Penh to Ho Chi Minh City and Danang, Vietnam.
“The deepening economic cooperation between Vietnam and Cambodia will serve as an important foundation in bolstering better relations between the two countries in the future,” said Minh.