Boosting border trade with Cambodia

18th March, 2009

Goods are exported to Cambodia through the Moc Bai Border Gate in the southern province of Tay Ninh. — VNS Photo Doan Tung

HA NOI — Viet Nam and Cambodia affirmed further consolidation of co-operative activities on border trade based on their traditional relations, friendly neighbourliness and mutual benefit.

At a conference dedicated to border trade co-operation between Viet Nam and Cambodia over the past two days in Phnom Penh, Cambodia, the Ministry of Trade and Industry of Viet Nam and the Ministry of Trade of Cambodia signed a memorandum of understanding on border trade co-operation.

The two sides agreed to continue the implementation of a project to build a model market on the border, and to set up a general plan for border trade between the two countries.

They agreed to report to both Governments about a study and discussion regarding an agreement on regulations to manage more significant markets at a number of border gates.

Both sides also agreed to hold the third conference on border trade co-operation by 2010 in Viet Nam.

Minister of Trade and Industry Vu Huy Hoang said economic and trade relations between Viet Nam and Cambodia had continued to develop, with bilateral trade turnover rising year on year. Turnover was US$180 million in 2000 and rose nine times to $1.6 billion last year.

Trade activities are conducted primarily at border gates in the southern provinces of An Giang and Tay Ninh.

According to the ministry, Cambodia’s import demands will continue to rise in the coming years. Total bilateral trade turnover will exceed $2 billion by 2010, and more than $6.5 billion by 2015. Cambodia uses many of Viet Nam’s consumer products, materials and fuel to serve their domestic production.

The two countries have set a target to increase export turnover by 27 per cent annually.

Viet Nam’s Ministry of Trade and Industry offers incentives for Cambodian enterprises and businesspeople to conduct business in border markets, trading centres and economic zones close to the border gates.

The Viet Nam – Cambodia border is 1,137km long, with nine international border gates, 10 national border gates, 34 sub-border gates, and 140 markets. However, because of geographic conditions, these border markets are still small and underdeveloped. — VNS