Vietnam trade rises, yet deficit widens

13 January 2011
by May Kunmakara
Source: Phnom Penh Post

CAMBODIA’S trade deficit with Vietnam widened over the first eleven months last year to US$1.383 billion, according to figures obtained from the Vietnam Trade Office in Phnom Penh yesterday.

“We cannot balance trade with them because they have a very big population and economy,” said Kong Putheara, Deputy Cabinet Chief of the Ministry of Commerce.

Vietnam exported some $1.593 million worth of goods to the Kingdom in 2010, up to the end of November, a 36 percent increase on the same period of 2009.

Meanwhile, Cambodia exported $210 million worth of goods to its eastern neighbour during the period, a 32 percent increase.

In 2009, the gap between Vietnamese exports and Cambodia’s was worth about $1.016 billion.

“Vietnam sees plenty of potential in Cambodia, compared with other countries, because of how close they are to us,” said Kong Putheara.

Tensions with Thailand had also provided opportunities for Vietnam to increase its business in the Kingdom, he said, adding Vietnam’s economic footprint here would continue to grow even as relations improved with Thailand

Cambodia’s major exports to Vietnam are agricultural products such as wood, rubber, cashews, rice, and corn.

Vietnam ships products such as vegetables, fruits, instant noodles, plastics, and cigarettes to the Kingdom.