Cambodia was recorded as the third largest recipient of Vietnamese investment during the first quarter of this year, according to a report released by the Foreign Investment Agency under the Ministry of Planning and Investment in Vietnam.
From January to March, Vietnam invested roughly $49 million abroad. Of which, the US was the largest recipient of Vietnam capital, receiving $20.1million or about 41 percent of the total. Singapore came in second, receiving Vietnamese investment to the tune of $12.8 million (26 percent), while Cambodia was listed in third place, with investment totalling $9.5 million or 19.3 percent.
Vietnam’s investments outside its territory are mostly made in accommodation, food, technological activities, processing and manufacturing. But according to Cambodia’s Chamber of Commerce, Vietnamese investment here is focused on agriculture, forestry, insurance and banking.
The news comes as the two governments pledged to increase bilateral trade volume. This follows Prime Minister Hun Sen’s recent statement that volume had already reached $5 billion by the end of 2019 and the figure is expected to rise further this year.
State-run Vietnam Rubber Group has already declared it is planning to increase its rubber plantation operation from 47,000 to 65,000 hectares this year. In addition, the Vietnamese Rubber Plantation Association recently announced that two Vietnam rubber firms will be looking to employ 105,000 workers from this year until 2021 in the Kingdom.
Vietnamese conglomerate Hong Anh Gia Lai Agrico has already invested $400 million to produce various fruit crops in Cambodia’s Ratanakiri province, including bananas to export to China.
Recent border restrictions to halt the spread of COVID-19 have caused concern that trade flow between the two countries might be adversely affected, but a Vietnamese custom official was recently quoted as saying that trade across the Cambodia-Vietnam border remains stable, with the transportation of commodities through the Khanh Binh – Chrey Thom border gates still continuing as normal, with about 40 trucks a day being recorded.