Vietnamese firms target Cambodia

PM Dung’s visit to Cambodia underlined Vietnam’s interest in developing trade

Prime Minister Nguyen Tan Dung made an official working visit to Cambodia during January 12-14. During  Dung’s bilateral talks with his Cambodian counterpart Hun Sen, the two leaders agreed that the two governments would facilitate Vietnamese firms to do business in Cambodia, so that Vietnam’s investments in Cambodia will rise to $4 billion by 2015 while bilateral trade turnover reaching $5 billion.

“The two prime ministers agreed that the two countries will build a programme to connect the two economies in such sectors as roads, air routes, waterways, railways, tourism, telecommunications, finance, banking, food production, agriculture and rubber plantations,” said Vietnam’s Deputy Minister of Foreign Affairs Nguyen Phuong Nga.

The two leaders also committed themselves to further cementing in defence and cross border anti-crime co-operation.

The two leaders witnessed Vietnam’s Vinamilk granted an investment certificate for a project to build a $23 million milk processing plant in Cambodia. State-owned creditor BIDV and Cambodia’s Ministry of Education, Youth and Sports inked a deal for BIDV to grant 50 scholarships to Cambodian students to study in Vietnam.

Hun Sen expressed his hopes that the Vietnamese government would continue to support Cambodia through larger investment in the country. He said his government would do its best to facilitate all Vietnamese investment projects in the nation.

The two prime ministers also attended a ceremony to mark the beginning of construction on the $38 million Long Binh-Chrey Thom Bridge connecting Vietnam’s An Giang and Cambodia’s Kandal provinces. It is expected that the project will be completed within 20 months.

This is Cambodia’s second largest transport project to be funded via Vietnamese concessional loans.

The two leaders also witnessed the inauguration of Cho Ray-Phnom Penh Hospital in the Cambodian capital.

By late 2013, Vietnam had 127 investment projects registered at over $3 billion in Cambodia, focusing on industrial tree plantation, mineral exploitation, oil and gas, power production, telecommunications, finance and banking.

Major Vietnamese  rubber plantation projects have been implemented in Cambodia by Hoang Anh Gia Lai Group and CT Group. The two countries have also established a Cambodia Bank for Investment and Development, a Cambodia-Vietnam aviation joint venture, a fertilizer production factory, Metfone Telecommunications, and a factory to produce sugar, ethanol and a thermal power plant.

The trade turnover between the two countries reached $3.3 billion in 2012, up 18 per cent on-year, and about $3.5 billion in 2013.

During Hun Sen’s official visit to Vietnam in late December last year, Vietnam and Cambodia signed eight co-operation agreements on extradition, trade promotion for 2014-2015, transit of goods, credit for the Long Binh-Charay Thom Bridge construction, education, media for 2014-2015, and public security for 2014.

Cambodia’s Nitrogen Chemicals and Fertilizer Company also clinched two memoranda of understanding with PetroVietnam Fertilizer and Chemicals Corporation on oil and gas co-operation, and with Vietnam National Chemical Group on fertilizer production.