Cambodia - a potential export market

The Cambodian market, with its adjacent location, open investment environment and strong consumer demand, is a potential destination for Vietnamese goods.

However, to tap into this market, businesses need a clear strategy, seize opportunities from policies, and focus on deeply processed products with high added value.

Introducing goods at the Vietnam-Cambodia Business Trade Conference, August 2025. Photo: Nguyen Vinh

The market has high consumer demand.

According to Bui Quang Hung, Deputy Director of the Trade Promotion Department ( Ministry of Industry and Trade ), in recent years, cross-border trade between Vietnamese and Cambodian businesses has achieved many positive results. Vietnam's main export items to the Cambodian market include processed agricultural products, construction materials, consumer goods, machinery and equipment, fertilizers, and plastic products. Conversely, Cambodia mainly exports cashew nuts, rubber, rice, mangoes, pineapples, papayas, and honey to Vietnam. In terms of product structure, trade between Vietnam and Cambodia is clearly complementary. Both countries are aiming to achieve a bilateral trade turnover of US$20 billion in the near future.

According to Customs data, in 2024, total bilateral trade reached US$10.1 billion, an increase of 17.5% compared to 2023. In the first seven months of 2025, two-way trade reached over US$7 billion, an increase of 16.3% compared to the same period in 2024, of which Vietnam's exports to Cambodia reached US$3.2 billion, an increase of 5.1%, and imports reached US$3.8 billion, an increase of 28.1%.

In particular, the signing of the Vietnam-Cambodia Bilateral Trade Promotion Agreement for the period 2025-2026 in April 2025 has created a significant impetus for trade between the two countries by reducing tariffs, improving customs procedures, and strengthening supply chain connectivity. Furthermore, both countries' participation in the Regional Comprehensive Economic Partnership (RCEP) has contributed to strengthening infrastructure and logistics connectivity and promoting cross-border trade.

Despite many advantages such as Cambodia being a close market, having an open investment environment, and strong consumer demand, bilateral trade between Vietnam and Cambodia still faces some difficulties.

According to Ho Thi Khanh Linh, a specialist from the Department of Foreign Market Development (Ministry of Industry and Trade), the border trade infrastructure between the two countries is still limited, with insufficient and weak warehouses, logistics, and border markets. Meanwhile, most transactions still take place through informal channels, posing a risk of tax revenue loss, difficulty in controlling quality, and affecting consumer rights. In addition, smuggling and trade fraud are complex issues, particularly concerning goods such as granulated sugar, cigarettes, and e-cigarettes. These activities not only cause budget losses but also distort the market and undermine the effectiveness of legitimate trade.

Taking bilateral trade to a new level.

According to Tran Chi Dung, Secretary General of the Vietnam Logistics Services Business Association, in bilateral trade, besides direct sales, transit activities still face many procedural obstacles, especially in the permit application process. Specifically, to get a shipment approved, the origin and destination points must be clearly defined. However, during the initial stages, both sides often do not fully share information about the location, quantity, price, contract, etc., leading to prolonged negotiations and order delays.

Representatives from the Vietnam Logistics Services Association proposed building a "ready corridor" to shorten procedures and reduce the risk of shifting orders from sea to air, which increases costs, or to less feasible road transport, thereby significantly saving logistics costs. Simultaneously, the application of digital logistics will be a breakthrough, ensuring the continuous flow of goods...

Mr. Do Viet Phuong, Vietnam's Trade Representative in Cambodia, believes that besides trade, investment is a way to help Vietnamese goods gain a sustainable foothold. Currently, there are five Vietnamese banks in Cambodia, facilitating access to capital for businesses. This is a good time to consolidate the market, but to elevate the position of Vietnamese goods, businesses need to export high-quality products and conduct thorough research to meet the specific needs of local consumers.

According to many experts, the two countries need to strengthen inter-sectoral coordination to improve customs and quarantine procedures, shorten customs clearance times, and reduce transaction costs. In addition, encouraging businesses to diversify export products, focusing on deeply processed goods with high added value; and promoting trade through fairs, exhibitions, and Vietnam Week in Cambodia will help businesses expand their markets and build sustainable brands.

According to Deputy Director of the Trade Promotion Department Bui Quang Hung, in order for Vietnam-Cambodia trade relations to develop to a new level, appropriate cooperation directions need to be identified. First, both sides must leverage the complementary nature of their goods structures, forming and strengthening value chains in the fields of agricultural products, processing industries, construction materials, and consumer goods. At the same time, trade promotion should be intensified through annual trade fairs, exhibitions, and business forums in both countries to foster long-term connections and cooperation. Furthermore, it is necessary to maximize the benefits from trade agreements, coordinate efforts to remove non-tariff barriers, enhance competitiveness; develop border trade infrastructure, logistics, e-commerce, and digital transformation to reduce costs, improve business efficiency, and align with global trends...

Source: https://hanoimoi.vn/campuchia-thi-truong-xuat-khau-nhieu-tiem-nang-714678.html