Vietnam and Cambodia based corporations are being encouraged to boost bilateral trade as the their respective ministries of investment and planning discuss signing of a memorandum of understanding (MoU) for trade.
The provisions of the MoU were not disclosed, but generally the Vietnamese ministry will help its Cambodian counterpart with management expertise to enhance the efficiency in attracting investment.
“The growth of the Vietnamese economy means a lot to us,” commented Cambodia’s Minister of Planning Chhay Than, adding that the growth in Cambodia’s gross domestic product (GDP) and the recent decline in inflation was attributable to the support from Vietnam.
Meanwhile, the Vietnamese Minister of Investment and Planning Bui Quang Vinh said: “The more Cambodia grows, the more benefits Vietnamese investors will get.”
Vietnam has 128 investment projects in Cambodia, totalling $49.6 million in investment capital, while Cambodian companies have 13 investment projects in Vietnam with a combined value of $54 million.
Minister Chhan Thay pledged to offer incentives and land for Vietnamese firms to invest, and both parties will boost mutual investment in energy, agriculture, mineral and hydropower. Along with that, procedures for banks to make the presence in each country will be simplified so that there will be more banks coming to serve investors.
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He expects that bilateral trade between the two countries will reach $5 billion this year.
Vinh noted that although inflation in Vietnam tended to decrease strongly, the country continued to achieve GDP growth. Last year was the first time Vietnam has seen GDP rise beyond target (5.98 per cent compared to 5.8 per cent).
Vinh said Vietnam will keep the GDP growth this year of at least 6.2 per cent and target an average of 6.5-7 per cent for the 2016-2020 period.
Last year also marked a drastic reform of the legal system, amending the vital laws on investment and enterprise towards a transparent market-oriented economy and international integration. In addition, Vietnam has launched the law on public investment for the first time to manage effectively the State budget.
Meanwhile, Cambodia is a potential market with a higher growth of 7.5 per cent in recent years. It has been seen increasing investment from large economies such as China, South Korea and Japan.