Nambodia: a colony for dumping Vietnamese exports?

Cambodia ripe for more exports

July, 02 2012
VNS

HCM CITY — Cambodia offers plenty of opportunities for Vietnamese exporters although there is intense competition from countries such as Thailand and China, delegates said at a conference in HCM City last Thursday. 

Le Quoc Phong, general director of the Binh Dien Fertiliser Group, said the Cambodian market had been familiar with fertilisers imported from Thailand and China. Therefore, the company faced difficulties in the initial step of penetrating the market.

Vietnam, Cambodia issue joint statement [-Hanoi's marching order for Hun Xen]

09/12/2011
VNA (Hanoi)

Vietnam and Cambodia have reaffirmed their commitment to maintaining and developing the valuable traditional friendship between the two countries.

In a joint statement issued at the end of Party General Secretary Nguyen Phu Trong’s visit to Cambodia at the invitation of King of Cambodia Norodom Sihamoni on December 8, the two sides expressed their pleasure at the practical and efficient development of the fine neighbourliness, traditional friendship and comprehensive and long-lasting cooperation.

They once again affirmed to maintain and promote the traditional friendship and pass it on to younger generations on the basis of principles in the Vietnam-Cambodia joint statements in 1999, 2005 and 2009, considering this one of important factors in ensuring the success of each country’s national construction and defence.

On the occasion of the 45th anniversary of their diplomatic ties, the two sides agreed to name 2012 as the “Vietnam-Cambodia Friendship Year”.

The two sides stressed the importance of economic cooperation and pledged to further expand and improve the efficiency and quality of economic cooperation in order to match both countries’ aspirations and potential.

They emphasized the resolve to double two-way trade to US$5 billion in the next five years and encouraged their businesses to boost cooperation and investment in border areas, particularly the Development Triangle.

Vietcong's trade with Nambodia booms ... with huge trade deficit for Nambodia

Trade with Cambodia booms

September, 12 2011
VNS (Hanoi)

HCM CITY — Trade between Cambodia and Viet Nam grew strongly in the first eight months, according to statistics from the Cambodian Ministry of Commerce.

Cambodia's exports to Viet Nam were worth US$105.2 million, an increase of 116 per cent year-on-year, and its imports topped $976 million, a 43-per-cent rise.

Cambodia's main imports included foodstuff, machinery, apparel, petrol, and other consumer goods. It exported rice, latex, dried cassava, and maize.

Vietnam-Cambodia Trade Rises Sharply [... with huge trade deficit for Cambodia]

PHNOM PENH, June 24 (Bernama) -- Two-way trade between Vietnam and Cambodia in the first five months of this year reached over US$1 billion, representing a year-on-year rise of 41 percent, Vietnam News Agency (VNA) reported.

During this period, Vietnam exported US$891 million worth of goods to Cambodia, an increase of 139 percent while Cambodia earned US$124 million, compared to US$120 million from its exports to Vietnam.

The Vietnam Trade Office in Cambodia said Vietnam's exports to Cambodia rose sharply due to growing investment by Vietnamese companies in Cambodia, especially in the fields of rubber, farm produce processing and health care.

Cambodia, Vietnam sign investment contracts of nearly 1 bln USD [... It's a one-way trade to the benefit of Vietnam]

PHNOM PENH, Apr. 24, 2011 (Xinhua) -- Some 500 Cambodian and Vietnamese businessman met here on Sunday in the 2nd Cambodia-Vietnam conference and some investment projects worth nearly 1 billion U.S. dollars were signed.

The annual conference was chaired by the two countries' prime ministers.

Speaking in the conference, the visiting Vietnamese Prime Minister Nguyen Tan Dung said that to date, excluding the investment costs, which would be signed in the conference, Vietnamese investments in Cambodia have mounted to more than 2 billion U.S. dollars in the fields of telecommunication, aviation, banking and finance, mineral resources, and rubber plantations.

Cambodian investments in Vietnam have mounted to 51 million U.S. dollars.

Nguyen Tan Dung encouraged more Vietnamese investors to consider their ventures in Cambodia, and urged existing Vietnamese investors to strengthen and expand the investment to build closer economic cooperation.

Meanwhile, Cambodian Prime Minister Hun Sen said that Cambodia is implementing favorable investment policies for overseas investors.

One-way trade deficit with Vietnam on the rise during Q1

Exports to Cambodia on the rise in first quarter

April, 20 2011
Vietnam News

HA NOI — Two-way trade turnover between Viet Nam and Cambodia reached U$$626.4 million in the first three months this year, up 45 per cent over the same period in 2009.

According to the General Department of Customs, Cambodia's imports from Viet Nam surpassed $498 million (up 44.3 per cent) in the review period, accounting for 2.1 per cent of Viet Nam's total export turnover.

In the recent years, Viet Nam's commodity export value to Cambodia has been growing at a double digit rate.

Vietnam’s [ONE-WAY] exports to Cambodia rise

18/04/2011
VNA/VOV News

The two–way trade turnover between Vietnam and Cambodia reached US$626.4 million in the first three months this year, up 45 percent over the same period of 2009.

According to the General Department of Customs, Cambodia’s imports from Vietnam surpassed US$498 million (up 44.3 percent) in the review period, according for 2.1 percent of Vietnam’s total export turnover.

In the recent years, Vietnam’s commodity export value to Cambodia has been growing at a double digit rate.

Cambodia trade needs investment [-Why does it have to come from Vietnam exclusively?]

December, 24 2010
VNS (Hanoi)

TAY NINH — Viet Nam and Cambodia have yet to fully tap their bilateral investment and trade potential due to poor infrastructure in border areas and lack of information on investment and trade opportunities, a provincial official said.

Though trade between the two countries is rising by more than 30 per cent annually, Cambodia remains a promising market for Vietnamese firms, Do Thanh Hoa, director of the southern Tay Ninh Province's Department of Industry and Trade, told a conference held on Wednesday.

Trade between the two countries is expected to reach US$1.7 billion this year. Vietnamese firms blamed the low exports on the shortage of commercial centres, warehouses, and showrooms in border areas.

Poor transportation and communications, unreliable payment systems, and insufficient information on investment and trade opportunities also made it difficult for them to export to the neighbouring country, they said.

Many Vietnamese companies have, however, invested in Cambodia in rubber plantations, information and communications, banking and supermarket.

Boosting one-way trade with Hanoi?

Officials seek ways to boost cross-border trade with Cambodia

Sunday ,May 23,2010
Saigon Giai Phong (Vietcong communist party)

To better tap the great potential in cross-border trade with Cambodia, Vietnam has much to do, including improving the traffic infrastructure in the border area and simplify customs and trade regulations, officials have said.

Kien Giang Province, one of the province bordering Cambodia in the South West, now has 69 businesses engaged in cross-border trade with Cambodia. The province expects to see two-way trade with its Cambodian partners reach US$150 million this year. The amount will include $100 million worth of its exports to Cambodia.

The State Bank of Vietnam’s branch in Kien Giang has opened three foreign exchange agents in the province to facilitate trade, service, and tourism activities between Vietnamese and Cambodian businesses.

Trade with Cambodia has also developed in Tay Ninh Province’s Moc Bai Border Economic Zone, which attracted about 80,000 Cambodian customers last year, earning total sales of VND1.35 trillion ($71 million).

Meanwhile, An Giang Province’s Tinh Bien Border Economic Zone, which began operation in August 2009, aims to increase its sales with Cambodian companies by 30 percent to VND1 trillion this year.


Shoppers at the duty-free hypermarket in the Moc Bai Border Economic Zone, Tay Ninh Province (Photo: VNP)

Problems to resolve

Nguyen Minh Tri, head of the Management Board of An Giang Province’s Border Economic Zone, said: “The cross-border trade with Cambodia has a lot of development potential, but many Vietnamese businesses hesitate to be engaged in it due to some impediments.

One of the main hindrances is the cap on value of duty-free goods customers can buy at the zone, Mr. Tri said. “The cap has been fixed at VND500,000 ($26.3) per customer, and this rate fails to meet increasing demand for such goods.”

In addition, the offer of duty-free goods to customers is regulated to be terminated in 2012. This regulation is likely to constrain the development of border trade, he said. “If the Government does not to extend the term, many businesses will ‘die’.”

“Customers will never travel a long way here only to buy goods at the same prices anywhere else,” he explained. "For that reason, we have not dared to expanding business although the number of customers is on the rise.”

Another problems to the cross-border trade are the poor traffic infrastructure and cumbersome customs and quarantine procedures, he said.

To facilitate the cross-border trade, a one-stop custom policy should be adopted by both Vietnam and Cambodia in their border gate areas, Pham Thien Nghia, deputy head of the Office of the Dong Thap Province People’s Committee, said.

Deputy Minister of Industry and Trade Nguyen Thanh Bien said the ministry would propose the government to step up the infrastructure improvement in the borderland with Cambodia, and streamline regulations on cross-border trade.

“Vietnam-Cambodia market” to be set up

The ministry is working with the Cambodian Trade Ministry to reach an agreement on tariff preference for farm produce, Mr. Bien said.

The two agencies are also proceeding with a plan to set up a “Vietnam-Cambodia border market” to boost bilateral trade, he said.

Mr. Nghia said Dong Thap Province would concentrate efforts on developing its border economy by 2015.

The province will strengthen trade, service, and tourism activities at the Dinh Ba border gate area and expand waterway goods transport at the Thuong Phuoc border gate, he said.

Meanwhile, Vuong Binh Thanh, standing deputy chairman of An Giang Province People’ s Committee, said the province would initiate a plan to build two corridors for trade and tourism between the Mekong Delta region and Cambodia.

The trade corridor will be an expressway connecting Can Tho Province with Cambodia’s capital, Phnom Penh, while the tourism corridor will run along southern coastal provinces of both countries, he said.

Vietnam-Cambodia trade turnover shoots up [... thanks to Uncle Hoon Xhen]

05/11/2010
VNA/VOVNews

The two-way trade turnover between Vietnam and Cambodia in the first quarter of this year rose by nearly 130 percent over the same period last year to hit US$432 million.
The sharp rise is regarded a good signal for achieving the target of US$2 billion in the two-way trade turnover set by the two countries’ prime ministers for this year.

The target is achievable since Cambodia sees a strong economic recovery, said Cambodia’s Ministry of Commerce Secretary of State Chan Nora.

Vietnam’s export staples to the neighbouring country are vegetable, fruits, plastic products, home utensils, construction materials, farming machines and fertilisers.

Meanwhile, Cambodia exports wood, rubber, cashew nuts, maize, cassava among agricultural products to Vietnam.

Last year, the bilateral trade turnover only stood at US$1.33 billion, down 19 percent from 2008, due to the negative impact of the global financial crisis.

Vietnamese goods attain many advantages upon entering Cambodian market [... thanks to Uncle Hoon Xhen]

Monday ,May 10,2010
Saigon Giai Phong (Vietcong communist party)

Firms said Vietnamese goods would likely dominate Cambodia’s market if the country offers them favorable policies about taxes and fees, issues laws to protect them, and helps them maintain updated information concerning evolving markets.

Vietnamese goods exported to Cambodia managed to remain at a growth of 30 percent a year, while the country’s overall export market suffered a decrease. The conference on border trade cooperation and development between Vietnam and Cambodia, held recently, mainly discussed how to maintain the two-way trade growth between the two countries with a focus on strengthening that partnership over the next ten years.
Potential hard to exploit

According to Vu Huy Hoang, minister of the Ministry of Industry and Trade, Cambodia is an important and potential market for Vietnamese goods as the two countries share a border of 1,137 kilometers that goes through 10 Vietnamese provinces and 9 in Cambodia. There are 10 pairs of international border gates, 12 pairs of main border gates, and 25 secondary gates along the border. In addition, there are many trails, which facilitate trade between the two countries.

Vietnam and Cambodia share several similarities in terms of local customs and consumer demand, which benefits Vietnamese firms in the exportation of goods. Many Vietnamese consumer goods groups, including cosmetics, instant noodles, plastic products, and fertilizers account up to 50 percent of market share in Cambodia. Meanwhile, Vietnam mainly imports materials for manufacturing.

Vietnam has great structural advantages in the exportation of goods to Cambodia. However, as for now, the neighboring country is merely a potential market.

According to Tran Huu Duc, foreign relations director of Nutifood, through goods fairs and mass media, the percentage of Cambodian people, who know about Nutifood’s dairy products, has recently risen. However, as the applied tariffs for dairy products have risen to 35 percent, Vietnamese firms primarily sell products into Cambodian markets by unofficial cross-border trade, taxed at just 10 percent.

On the other hand, the cost spent to sell Vietnamese products in the supermarket system is rather high, creating an unsolvable puzzle for Vietnamese firms.

Sharing the same opinion, Lai Quoc Doan from plastic company Dai Dong Tien, added that Vietnamese goods have an important position in Cambodia, especially plastics. Nevertheless, many firms remained hesitant because of complicated administrative procedures, unclear customs clearance, and high tariffs. Besides the import tariff of 7 percent, and value added tax of 10 percent, firms have to pay an import fee of US$120 per time. This combined with a customs declaration fee of US$200 per container, makes the exportation rate too high for a batch of goods valued between US$16,000-US$18,000.

Pham Le Huynh Mai, representing the instant noodles company Colusa-Miliket, said exporting a batch of goods to France by sea costs only $85, while to Cambodia by road costs them up to $95. High cost has increased the price of a case of instant noodles by at least VND20,000.

Change advantage into reality

The Ministry of Industry and Trade expected that revenues gained from trade with Cambodia possibly reached $2 billion this year, and would rise to $7 billion by 2015.

Cambodian trade minister said statistical figures hadn’t reported exactly the actual turnover between the two countries, as unofficial cross-border trade was much higher.

Firms said Vietnamese goods would likely dominate Cambodia’s market if the country offers them favorable policies about taxes and fees, issues laws to protect them, and helps them maintain updated information concerning evolving markets.

By Thuy Hai – Translated by Vinh Nghi

Another chapter in the march toward the Indochinese Federation

Vietnam firms need long-term plan in Cambodia

03/19/2010
VOV News (Hanoi)

Vietnamese enterprises need to map out long-term strategies for deeper penetration into Cambodia, according to a HCM City trade seminar organized by the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency on March 18.

Tran Van Thi, lecturer at the Marketing and Finance University, told the seminar that the Vietnamese enterprises should set up more factories in Cambodia.

This also suggested setting up franchises and more promotions at border gate economic zones as ways for Vietnam to improve its position as the third biggest exporter to the potentially lucrative market, after Thailand and China.

Currently, there are 97 markets located along the border gates and 37 others within border gate economic zones.

More border gate economic zones will be set up in Dak Nong, Gia Lai, and Kontum provinces for further business cooperation.

Bui Thi Thanh An, head of Viettrade said, it was vital to create more exports as Cambodia was the key gate to transport Vietnamese goods to other ASEAN countries.

Experts told the seminar that Vietnamese businesses need to capitalize on their strengths compared to Cambodia, for example, Vietnamese manufacturers are able to produce better quality goods for less money, and open more distribution channels.

Viets stealing market share from Siems

Vietnamese products sell well in Cambodia

03/18/2010
VOV News (Hanoi)

A representative of the Department for Trade Promotion says market share for Vietnamese products in Cambodia increased sharply in the first quarter of 2010.

Tran Van Thi made the statement at a conference on ways to penetrate the Cambodian market held in Ho Chi Minh City on March 18.

Over the past 3 years, the popularity of Vietnamese goods in Cambodia has grown by 40 percent. Aquatic products, steel and processed agricultural products have consistently accounted for 67-80 percent of the market.

By the end of last year, Vietnam had invested in 63 projects in Cambodia with a total registered capital of nearly US$900 million.

Cambodia is now one of the 3 countries drawing the highest level of Vietnamese overseas investment capital. Trade revenue between the two countries is expected to reach US$2 billion by the end of this year.

Vietnam can export many kinds of farm products, especially vegetables, to Cambodia ... That says it all!!!

An Giang expands agricultural cooperation with Cambodia

02/25/2010
VOV News (Hanoi)

Many businesses in the southern province of An Giang provide aquatic varieties and technical assistance to help Cambodian farmers reap higher profits.

Under an agricultural cooperation programme between An Giang and neighbouring provinces in Cambodia, Vietnam can export many kinds of farm products, especially vegetables, to Cambodia, Sai Gon Giai Phong newspaper reported on February 24.

Cambodia is calling for the cooperation of Vietnamese farmers boosting in farm production on its 6,000-7,000 ha of land, according to the newspaper.

Vietnam opens bank in Cambodia to promote bilateral trade [... or to better control Cambodia?]

PHNOM PENH, Jun. 24, 2009 (Xinhua News Agency) -- Vietnam's commercial bank Sacombank opened its first branch in Phnom Penh on Tuesday, bringing the total number of commercial banks in Cambodia to 30, local media reported on Wednesday.

Bank officials say that Cambodian operation will not compete with local banks, but will assist cross-border transactions between Cambodia and Vietnam.

"We are here to improve cross-border business, especially between Cambodia and Vietnam," John Vong, deputy CEO of Sacombank, was quoted by the Chinese language newspaper the Commercial News as saying.

The bank's Chairman Dang Van Thanh said that "the bank is aiming to provide loans to Vietnamese enterprises investing and operating in Cambodia, overseas Vietnamese, especially those running small and medium-sized enterprises."

The government figures showed that bilateral trade between Cambodia and Vietnam is projected to rise to two billion U.S. dollars in 2009, up from 1.62 billion U.S. dollars in 2008.

Chea Chanto, governor of the National Bank of Cambodia (NBC), said at Tuesday's launch that "the investment of Sacombank in the Cambodian market is an expression of confidence by Vietnamese investors in Cambodia's banking sector."

"Cambodia is a good location for banking because it is an economy open for investment from other countries," he added.

Cambodian trade fairs to show off Vietnamese goods

Caution: Any resemblance to dead or alive persons is purely coincidental

02/17/2009
VOVNews/VNS (Hanoi)

The HCM City Investment and Trade Promotion Centre will join hands with Saigon Marketing newspaper and the Vietnam high-quality products club to organise trade fairs displaying Vietnamese products in Phnom Penh and Battambang, Cambodia.

The Phnom Penh fair is scheduled for April 1-5 and the Battambang fair for November 25-29.

Organisers are conducting market surveys in Phnom Penh, Siem Riep, Battambang and Thailand’s northeast region.

[Vietnam's] Trade with Cambodia on surges in 2008 [-It's mainly a one-sided trade that benefits Vietnam]

August 25, 2008
VNA (Hanoi)

The trade revenue between Vietnam and Cambodia is expected to surpass US$1.5 billion this year against US$1.2 billion in 2007.

The Commercial Counselor of the Vietnamese Embassy in Cambodia, Le Bien Cuong, said the two countries recorded almost US$900 million in trade revenues for the first half of the year.

Vietnam exported over US$700 million to Cambodia and imported over US$140 million worth of commodities from the neighbouring country.

Textile and garments, computers, electronic appliances, household electrical products, fruit and vegetables, seafood and plastic commodities are Vietnam’s major hard currency earners.

The two countries set a target of US$2.3 billion in bilateral trade by 2010 and US$6.5 billion by 2015.

Why wait until 2010 to boost the "one-way" trade to $2.3 billion with VN when VN can force Hun Sen to accomplish this feat right now?

Cambodia, Viet Nam target $2.3 billion in bilateral trade by 2010

21-01-2008
VNS (Hanoi)

AN GIANG — Cambodia and Viet Nam are expected to achieve bilateral trade worth US$2.3 billion annually by 2010, according to reports released at the border-trade meeting held in An Giang Province last week.

In the first 11 months of 2007, trade turnover between Viet Nam and Cambodia amounted to $1.1 billion, a year-on-year increase of 30 per cent.

Viet Nam attained export turnover of $896 million with Cambodia while imports from the neighbouring country amounted to $180 million.

A report from the Viet Nam Ministry of Industry and Trade’s Asia-Pacific Department said trade between the two countries rose from $184 million in 2001 to $940 million in 2006.

Cambodia is currently the 16th biggest overseas market for Vietnamese goods while Viet Nam is the third largest buyer for Cambodian exports, behind Thailand and China.

Viet Nam enjoys a trade surplus over Cambodia. Major exports from Viet Nam include textiles and garments, plastics, computers, electronics and components, vegetables and fruits, seafood and electrical home appliances. Imports from Cambodia include tobacco materials, rubber, wood products and cloth.

The report said border-trade between the two countries has risen by 30 per cent annually during the past five years.

Trade between the two countries operates through border gates in ten Vietnamese border provinces. Up to 95 per cent of that trade is conducted in the provinces of An Giang and Tay Ninh. In 2006, trade in the Mekong province of An Giang amounted to $600 million, accounting for 87 per cent of border trade between Viet Nam and Cambodia.

The 10 Vietnamese provinces bordering Cambodia have eight border economic zones that cover 6,677sq.m, representing 2.7 per cent of the total area of these provinces.

These border economic zones contribute 34 per cent of the total import taxes and 10.2 per cent of total export taxes of the 23 border economic zones across the country.