Booming Vietnamese coffee exports to Cambodia

In a bid to further strengthen economic ties, the Vietnamese Ministry of Industry and Trade (MoIT) and Cambodia's Ministry of Commerce (MoC) recently co-organised a Vietnam-Cambodia Business Networking Conference in Phnom Penh. The conference aimed to seize the potential for increased trade between the two countries.

During the conference, Vietnam called for stronger links with Cambodian associations, distribution systems, and importers. The focus was on removing technical barriers to ensure smoother and more balanced trade. This comes as Vietnam's coffee exports to Cambodia have seen significant growth in recent months.

In the first seven months of 2021, Vietnam exported 2,231 tonnes of coffee to Cambodia, worth $10 million. This represents a 78% increase in volume and a 114% increase in value compared to the same period in 2020. July saw a particularly significant surge, with Vietnam exporting 713 tonnes of coffee worth $2.7 million, marking a 406% increase in volume and a 460% increase in value year on year.

The growth in Vietnam's coffee exports to Cambodia is attributed to the steady growth of Vietnam-Cambodia trade. In fact, two-way trade between the two countries surpassed $7 billion in the first seven months of 2021, a significant increase from previous years.

The companies driving this growth include subsidiaries of the Hoang Anh Gia Lai Group, such as Hung Thang Loi Gia Lai Company Limited, along with affiliated companies like Gia Lai Livestock Company, Lo Pang Livestock Company, Bolaven Sturgeon Seafood Company, and Phu Quy Gia Lai Agricultural Company. These companies are involved in coffee cultivation projects in the Gia Lai region of Vietnam and the Champasak and Attapeu provinces of Laos.

The surge in Vietnam's coffee exports to Cambodia indicates a growing economic relationship between the two countries. Europe remains the largest market for Vietnam's coffee exports, but demand is growing strongly in Asia. This trend is reflected in the growth of Vietnam's coffee exports to Cambodia.

The two economies of Vietnam and Cambodia are highly complementary, with several export-import items showing strong potential. According to Vietnam's Trade Counselor in Cambodia, Đỗ Việt Phương, this complementarity has the potential to drive further growth in trade between the two countries.

Looking to the future, the Chairman of the Vietnamese Coffee and Cocoa Association (VICOFA), Nguyễn Nam Hải, stated that coffee exports from October 2024 to July 2025 reached 1.35 million tonnes worth $7.5 billion. This represents a nearly 57% increase in value despite a slight dip in volume.

In a meeting with Cambodian Prime Minister Hun Manet, Vietnamese Prime Minister Phạm Minh Chính proposed stronger transport connectivity, streamlined border procedures, and greater business facilitation towards a $20 billion two-way trade target. With the growing economic relationship between Vietnam and Cambodia, this target seems within reach.

In conclusion, the growth in Vietnam's coffee exports to Cambodia is a testament to the strengthening economic relationship between the two countries. With complementary economies and a focus on removing technical barriers, the future looks bright for Vietnam-Cambodia trade.