Logo of Phnom Penh Post newspaper Phnom Penh Post - Trade with Vietnam slows

Trade with Vietnam slows

Trade with Vietnam slows

121026_07

A man harvests corn on the outskirts of Phnom Penh in August 2012. Photograph: Hong Menea/Phnom Penh Post

Bilateral trade between Cambodia and neighbouring Vietnam grew by 17 per cent in the first nine months of the year compared to the same period last year, a decrease from previous years, the Vietnam Trade Office in Cambodia said yesterday.

An official said increased competition among other suppliers caused the slowdown.

The data showed a total trade volume worth US$2.452 billion on the exchange between January to the end of September, compared to $2.096 billion in the same period last year – an increase of 17 per cent.

This figure is less than previous years, which saw growth of more than 20 per cent.

Tran Tu, trade attaché for the Vietnam Trade Office in Cambodia, said the slower growth of imports and exports between the two countries was due to a decline in demand as a result of the economic situation between the two countries, as well as the global economy.

“The trade volume growth speed has slowed down in comparison to recent years due to economic difficulties in both countries, including the decreasing demand in both countries, the increasingly tough competition of the other suppliers in Cambodia, and especially high transportation costs,” he said.

“With this trend, I expect that the bilateral trade volume will reach approximately $3 billion this year, about 20 per cent up from last year’s figure,” added Tran Tu.

Cambodia’s total exports to Vietnam increased by about 10 per cent to $378 million in the period, compared to $345 million last year.

Cambodia’s main exports to Vietnam were aquatic products and seafood, corn, dried tobacco, rubber latex, paddy rice and cashew nuts, according to the data.

Cambodia’s total imports from Vietnam rose by more than 18 per cent to $2.074 billion, from $1.751 billion.

The main products were steel of all kinds and steel products, confectionery and cereal products, garments, rubber products, vegetables and fruit, paper, metal products, machinery, vehicles and spare parts.

In June this year, both governments pledged to spur the two-way trade to reach $5 billion by 2015. Tran Tu is still optimistic that the target will be realised based on current figures.

“This growth rate can still ensure the 2012 target of $5 billion set by the two governments,” he said.

Kong Putheara, spokesman for the Ministry of Commerce, could not be reached for comment.

To contact the reporter on this story: May Kunmakara at [email protected]

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The