Cambodia is one of the major destinations of Vietnamese outbound investment, a result of efforts by the countries to boost bilateral trade.
From January to September, Vietnam firms invested about $50 million in the Kingdom, which makes Cambodia the fourth largest destination of Vietnamese outbound investment, according to the Foreign Investment Agency of Vietnam’s Ministry of Planning and Investment.
The agency noted that Australia was the leading recipient of Vietnamese investment, welcoming $140.6 million or 32 percent of total investment. Australia was followed by the United States, Spain, Cambodia and Singapore.
Total Vietnamese outbound investment was estimated at $430 million, going into various sectors, from wholesale and retail, to science and technology, real estate and agriculture.
The Embassy of Vietnam in Phnom Penh recently hosted the Vietnam-Cambodia Trade and Investment Forum 2019, where more than 40 Vietnamese businesspeople came together to explore business opportunities in the Kingdom.
“The strong trade ties between the two countries still have room for improvement,” said Vietnamese Ambassador to Cambodia Vu Quang Minh.
Data from the embassy shows that Vietnam is Cambodia’s fifth-largest investor. More than 200 Vietnamese companies are operating in the Kingdom.
Vietnamese investment in Cambodia is mostly in agriculture, forestry, insurance, and banking. There is also substantial Vietnamese investment in IT, aviation, construction, transportation, real estate, manufacturing, and processing.
During his official visit to Vietnam in October, Prime Minister Hun Sen urged Vietnamese companies to consider the Kingdom for expansion, noting that Cambodia has high potential, particularly in agriculture.
“We thank all foreign investors, particularly Vietnamese investors that have chosen Cambodia,” Mr Hun Sen said
The premier noted that, from 1994 to Aug 2019, there were 84 Vietnamese-funded projects registered in Cambodia, worth a combined $2.5 billion.
In the first six months of the year, trade between Cambodia and Vietnam reached $2.7 billion. By the end of the year, it is expected to hit $5 billion.