Vietnam eyes $1.6 bln export value to Cambodia by 2010

Vietnam’s trade ministry has set its sights on the high-potential neighboring market of Cambodia, with annual targets of US$1.6 billion in export revenue by 2010, and up to $5.2 billion by 2015.
To achieve the high targets, Vietnam’s shipments to the neighbor should grow by 30 percent annually, said Nguyen Thi Kim Ngan deputy minister of trade at a seminar yesterday to collect views on the trade ministry-initiated plan.

Export earnings from Cambodia in past years have grown nearly 30 percent a year, topping $770 million in last year.

Cambodia is the 16th largest export market for Vietnam, while Vietnam is currently the fourth largest exporter in to Cambodia.

Exports to Cambodia have been increasing steadily on the back of good political ties and similar culture between the two countries, she said.

According to Pham Hoang Ha, director of the Ho Chi Minh City’s Department of Trade, Vietnam is currently faced with stern competition from Thailand and China in the market.

Initial statistics by the ministry showed that Vietnam lags behind Thailand in the race to tap the high potential and easy-to-please market.

For example, Vietnam-made cosmetics account for just 23 percent of the market share while Thailand makes up 42 percent.

Representatives from enterprises which do business with Cambodia said drawn-out customs procedures dull the competitive edge of Vietnamese exports.

They urged a one-door policy at Vietnam-Cambodian border gates, to facilitate domestic business.

Goods transport, which now depends on roads and waterways, limits export volume.

Trade officials said a poor distribution system caused Vietnamese exporters to lose the lion’s share of sales in the market.

Vietnam now has 15 outbound investment projects in Cambodia with total registered capital of US$33 million, according to the planning and investment ministry.

The largest of those, the Vietnamese military telecom giant Viettel is set to provide mobile service in Cambodia by the end of this year.

Viettel accounts for some 25 percent of the market for international Voice-Over-Internet Protocol (VoIP) and over 50 percent of international channel leasing in Cambodia.