HA NOI — Trade officials from Viet Nam and Cambodia agreed to further enhance co-operation between the two countries to strive to reach two-way trade turnover of US$2 billion this year and increase the figure to $7 billion by 2015.
The agreement was made at the third conference on trade development co-operation between Viet Nam and Cambodia held by Viet Nam's Ministry of Industry and Trade and Cambodia's Ministry of Commerce in the southern Long An Province on Thursday.
Participants at the annual event, from businesses and related ministries and departments of Viet Nam and Cambodia, exchanged ideas on future commitments and agreements and proposed co-operation measures as well as reviewing trade results since the second conference in March 2009, held in Phnom Penh.
Addressing the event, Minister of Industry and Trade Vu Huy Hoang emphasised that border trade co-operation had contributed to reinforcing friendly relations, boosting economic, cultural and social exchanges, creating jobs, and strengthening security in border areas.
Hoang said that despite the global economic crisis, last year's trade turnover between the two countries exceeded $1.4 billion, maintaining a growth rate of more than 30 per cent.
In the first quarter of this year, trade turnover reached nearly $432.5 million, up 127 per cent from the same period last year, Hoang said.
Similar consumption habits and demands have helped the two countries boost trade. Viet Nam mainly exports steel, chemicals, fuel, plastic products, fertiliser, cereal products and instant noodles to Cambodia while mainly importing raw materials.
Participants said that Cambodia is a potential market for Vietnamese exporters, however, it is still difficult for them to enter the market due to high import tax and cumbersome customs procedures.
Besides an import tax of 7 per cent and VAT at 35 per cent, exporting from Cambodia also incurs a fee of $320 for each container in customs fees.
Foreign affairs director of Nutifood Tran Duc Huu said that due to the high tax, Vietnamese exporters often ship goods to Cambodia in small volumes to enjoy a lower VAT rate of 10 per cent compared with the 35 per cent rate imposed on large volumes by the Cambodian government.
Despite being neighbouring countries, costly freight charge also hinders trade between Viet Nam and Cambodia. Pham Le Huynh Mai from Colusa-Miliket, an instant noodle company, said that freight by road for a container from Viet Nam to Cambodia costs up to $95 compared with $85 from Viet Nam to France by rail.
To make it easier for Vietnamese exporters, participants recommended the two governments sign agreements related to investment protection, cross-border transportation and payment.
Development of infrastructure, warehouses and information exchange were also discussed at the conference to help boost trade between the two countries.
At the close of the conference, a memorandum of understanding on border trade development co-operation between Viet Nam's Ministry of Industry and Trade and Cambodia's Ministry of Commerce was signed. — VNS
, Cambodia aim to boost trade co-operationHA NOI — Trade officials from Viet Nam and Cambodia agreed to further enhance co-operation between the two countries to strive to reach two-way trade turnover of US$2 billion this year and increase the figure to $7 billion by 2015.
The agreement was made at the third conference on trade development co-operation between Viet Nam and Cambodia held by Viet Nam's Ministry of Industry and Trade and Cambodia's Ministry of Commerce in the southern Long An Province on Thursday.
Participants at the annual event, from businesses and related ministries and departments of Viet Nam and Cambodia, exchanged ideas on future commitments and agreements and proposed co-operation measures as well as reviewing trade results since the second conference in March 2009, held in Phnom Penh.
Addressing the event, Minister of Industry and Trade Vu Huy Hoang emphasised that border trade co-operation had contributed to reinforcing friendly relations, boosting economic, cultural and social exchanges, creating jobs, and strengthening security in border areas.
Hoang said that despite the global economic crisis, last year's trade turnover between the two countries exceeded $1.4 billion, maintaining a growth rate of more than 30 per cent.
In the first quarter of this year, trade turnover reached nearly $432.5 million, up 127 per cent from the same period last year, Hoang said.
Similar consumption habits and demands have helped the two countries boost trade. Viet Nam mainly exports steel, chemicals, fuel, plastic products, fertiliser, cereal products and instant noodles to Cambodia while mainly importing raw materials.
Participants said that Cambodia is a potential market for Vietnamese exporters, however, it is still difficult for them to enter the market due to high import tax and cumbersome customs procedures.
Besides an import tax of 7 per cent and VAT at 35 per cent, exporting from Cambodia also incurs a fee of $320 for each container in customs fees.
Foreign affairs director of Nutifood Tran Duc Huu said that due to the high tax, Vietnamese exporters often ship goods to Cambodia in small volumes to enjoy a lower VAT rate of 10 per cent compared with the 35 per cent rate imposed on large volumes by the Cambodian government.
Despite being neighbouring countries, costly freight charge also hinders trade between Viet Nam and Cambodia. Pham Le Huynh Mai from Colusa-Miliket, an instant noodle company, said that freight by road for a container from Viet Nam to Cambodia costs up to $95 compared with $85 from Viet Nam to France by rail.
To make it easier for Vietnamese exporters, participants recommended the two governments sign agreements related to investment protection, cross-border transportation and payment.
Development of infrastructure, warehouses and information exchange were also discussed at the conference to help boost trade between the two countries.
At the close of the conference, a memorandum of understanding on border trade development co-operation between Viet Nam's Ministry of Industry and Trade and Cambodia's Ministry of Commerce was signed. — VNS
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