Cambodian Prime Minister Hun Manet has called for Vietnamese investment in a wide range of industries including automobile and electronics as investment flows from Vietnam have stalled and fallen far behind China and regional peers.
Addressing the Vietnam-Cambodia Trade and Investment Promotion Forum in Hanoi on Tuesday, Manet expressed hope that strengthened trade, investment and tourism cooperation will give a boost to bilateral ties.
Other industries open to Vietnamese investment include modern agriculture, food processing, digital technology, fintech and other manufacturing areas, he said.
Hun Manet is paying a two-day (December 11-12) official visit to Vietnam, the first ASEAN country he is visiting since becoming the Prime Minister of Cambodia.
Manet quoted data released by the Council for the Development of Cambodia (CDC) showing foreign direct investment (FDI) in Cambodia in the first 10 months of the year increased 4% year-on-year to around $4 billion, with Vietnam accounting for a mere 2%.
He said investment by Vietnamese companies in Cambodia should be larger, given the favourable conditions of geographic proximity, preferential customs duties and taxes for bilateral trade, and complementarity in competitive edges.
“Several investors implementing the ‘nation-plus’ [hedging] strategy with an aim to mitigate risks have turned Cambodia and Vietnam into good partners that complement each other perfectly in supply chain connectivity,” the Cambodian PM said.
He invited Vietnamese businesses to increase investments in Cambodia and urged Cambodian firms to do so in Vietnam to diversify their operations and supply chains.
“Cambodia will always have its arms open for Vietnamese businesses who wisely invest in the country, which boasts a favorable strategic location, stable politics and economic condition, an increasing number of consumers, and an appealing environment,” he said.
Addressing the forum, Vietnamese PM Pham Minh Chinh highlighted the fact that Vietnam-Cambodia trade had surpassed the $10-billion mark in 2022, three years ahead of the target.
In official talks Monday, the two PMs set the goal of raising bilateral trade to $20 billion in the near future.
Bilateral economic and trade relations have not matched their potential, Chinh acknowledged, calling for mutual investments in digital transition, climate resilience, circular economy and innovation-based industries.
He noted that Vietnam has already signed free trade agreements with over 65 of the largest markets worldwide and plans to have similar deals with Middle East, South American, and African nations as it bids to expand markets and repair supply chain disruptions.
The two PMs and other high ranking officials witnessed exchanges of several memoranda of understanding including one between Cambodia’s Rithy Granite Company and Vietnam’s Hung Hau Food Co. for a $50-million cashew and mango processing project; and a credit line of $15 million provided by Vietnam’s Military Bank for Cambodia’s Chip Mong Group.
Also at the forum, Vietnamese budget carrier Vietjet announced the launch of a direct flight between Hanoi and Siem Reap.