Exploiting trade potential with the Cambodian market

Take advantage of the market

According to the Department of Foreign Market Development, Ministry of Industry and Trade , the scale of trade in goods between Vietnam and Cambodia has been continuously expanding over the years. In the period 2014-2024, trade turnover increased more than 3 times, from 3.3 billion USD in 2014 to 10.1 billion USD in 2024. With an average annual growth rate of about 12%. In 2024 alone, the total bilateral turnover reached 10.1 billion USD, an increase of 17.5% compared to 2023. In the first 7 months of 2025, two-way trade turnover reached more than 7 billion USD, an increase of 16.3% over the same period in 2024. Of which, Vietnam's exports to Cambodia reached 3.2 billion USD, and imports reached 3.8 billion USD.

Vietnam mainly exports to Cambodia items such as petroleum, fertilizer, iron and steel, textiles, construction materials, chemicals, agricultural supplies, machinery and equipment, confectionery and consumer goods. The three groups of goods with the largest turnover and proportion in the first 7 months of 2025 were textiles (533 million USD, accounting for 16.5%), iron and steel (508 million USD, accounting for 15.7%) and textile and footwear materials and accessories (232 million USD, accounting for 7.2%).

Vietnam and Cambodia have signed a trade promotion agreement for the 2025-2026 period, with the goal of bringing two-way trade turnover to 20 billion USD. In the first half of 2025, two-way trade turnover between Vietnam and Cambodia continued to grow positively and is assessed to have much potential for further development. Especially when the two countries are making efforts to improve border infrastructure, upgrade border gates and create a fair and safe business environment. Many Cambodian enterprises are also increasing imports and distributing a variety of strong Vietnamese products. Enterprises and investors of the two countries have many opportunities to expand bilateral cooperation, attract FDI in strong fields such as agriculture, agricultural processing, processed food, construction materials, fertilizers, pesticides, etc. At the same time, exploiting the advantages of close traditional markets, taking advantage of opportunities from the signing of trade agreements between the two countries.

According to Mr. Vu Ba Phu, Director of the Trade Promotion Department, Ministry of Industry and Trade, new developments from some traditional supply sources are creating a large gap in the Cambodian market, especially in the consumer goods and necessities segment. The Ministry of Industry and Trade has identified this as an opportunity for Vietnamese goods and assigned the Trade Promotion Department to take the lead, coordinating with relevant units to promote exports to the Cambodian market to achieve the target of two-way turnover of 20 billion USD in the coming time.

Tay Do Steel Products, one of the units exporting finished steel products to the Cambodian market.

Grasp consumer tastes

The Trade Promotion Agency, the Import-Export Department, the Foreign Market Development Department, the Vietnam Trade Office in Cambodia and related units are actively promoting trade promotion activities between Vietnam and Cambodia to ensure that trade connection activities take place more and more vibrantly. Thereby, helping businesses quickly grasp market opportunities, supporting Vietnamese goods to increase their presence in the Cambodian market. At the same time, promptly remove difficulties and obstacles, creating favorable conditions for businesses to expand their scale, diversify export markets and ensure the sustainability of the supply chain.

According to Ms. Ho Thi Khanh Linh, an expert from the Department of Foreign Market Development, in recent times, the road system and international border gates between Vietnam and Cambodia have received much investment, but the infrastructure supporting trade such as warehouses, logistics centers and border markets is still weak and lacking. Most of the trading activities in the border area still take place in the form of small-scale trade. In addition, due to the long border with many openings, smuggling, trade fraud and intellectual property violations are complicated. Vietnamese goods in Cambodia are facing fierce competition from other countries, especially China. Many Vietnamese enterprises do not really understand the market, culture, customs and regulations of Cambodia, and have not focused on building brands and developing sustainable distribution channels in this market. These are problems that need to be focused on resolving in the coming time.

In 2024, the foreign trade turnover between Vietnam and Cambodia will account for about 20% of Cambodia's foreign trade turnover. Vietnam's exports to Cambodia alone will account for about 18.3% of Cambodia's total exports. This shows that Vietnam's export potential to the Cambodian market is not as large as in the previous period. Therefore, it is necessary to find a suitable way to exploit the potential.

According to Mr. Do Viet Phuong, Head of the Vietnam Trade Office in Cambodia, border trade between the two countries has developed rapidly, of which informal exports account for 70%. Therefore, it is necessary to promote official import-export activities to ensure safety for businesses, ensure product quality, and transparency in tariffs. However, it is necessary to harmonize official and informal exports because this is considered a familiar form of trade in this region. When bringing goods to the Cambodian market, businesses can focus on potential products including essential necessities, beverages, fertilizers, pesticides, construction materials, agricultural machinery, and pharmaceuticals. In particular, Vietnamese businesses need to change their sales mindset, instead of "selling whatever they have", they should focus on product quality, monitor and grasp the tastes of Cambodian consumers to supply suitable products, especially bringing high-quality Vietnamese products to gradually penetrate the Cambodian market.

According to Ms. Hoang Hoai Hanh, Deputy Head of the Commodity Sector Department, Import-Export Department, Ministry of Industry and Trade, to promote Vietnam-Cambodia trade, it is necessary to strengthen inter-sectoral coordination between the functional agencies of the two countries to improve customs and quarantine procedures, shorten customs clearance time and reduce transaction costs for businesses. At the same time, promote investment in upgrading infrastructure at key border gates, combine with the development of border logistics centers to improve customs clearance capacity. Businesses need to diversify export products, focusing on deeply processed goods, high added value and suitable for the tastes of Cambodian consumers. In addition to traditional trade promotion activities such as fairs, exhibitions and Vietnamese goods weeks, it is necessary to research and develop cross-border e-commerce, taking advantage of digital platforms to bring goods to consumers quickly.

MINH HUYEN

Source: https://baocantho.com.vn/khai-thac-tiem-nang-giao-thuong-voi-thi-truong-camuchia-a189691.html