The Ministry of Industry and Trade’s Asia-Pacific Market Department highlighted the strong trade ties uniting Vietnam and Cambodia and the two governments’ mutual commitment to bilateral trade cooperation.
(VOV) – Vietnamese goods enjoy many advantages over Thai and Chinese competitors on Cambodian markets.
Modern transport infrastructure has facilitated particularly high export-import turnovers.
Two-way trade turnover reached US$3.3 billion in 2012, an annual increase of 17%. Vietnam is currently Cambodia’s second largest trade partner.
Vietnam’s advantages over regional rivals include shared borders, ten international border gates, and similar consumer demands.
Vietnamese goods challenge Chinese and Thai counterparts
The Asia-Pacific Market Department said Cambodian consumers prefer Vietnamese goods over their Thai equivalents because of quality and reasonable prices.
Thai goods still vastly outnumber their Vietnamese competitors on the shelves of Cambodian supermarkets.
Almost all major Vietnamese companies operating in Cambodia are tied to distribution monopolies.
They are also reluctant to invest in Cambodian marketing and advertising initiatives. Businesses should work on developing their trademarks’ reputations and expanding distribution channels.
The Asia-Pacific Market Department approves of Vietnamese enterprise attempts to compete with Thai rivals in design, pricing, packaging and distribution, despite the considerable initial outlays such a strategy requires.
Experts even recommend attempting to establish new distribution networks in conjunction with out foreign investors.
The numbers of Vietnamese businesses with Cambodian stores—serving consumers directly—remains modest.
Vietnamese enterprises would also benefit from gaining more of a purchase in Cambodian supermarket franchises.