[EVENT] - Cambodia - Vietnam Trade Promotion Forum: Golden opportunities and new challenges

On December 14, 2021, the Cambodia-Vietnam Trade Promotion Forum was co-organized by the Consulate General of Cambodia in Ho Chi Minh City, The Cambodian Trade in Vietnam, and Indochina Holdings Trade Promotion Investment Joint Stock Company, an event to connect the exchange of Vietnamese and Cambodian businesses. At the event, many enterprises offered advantages and difficulties and presented solutions to enhance the cooperation between the two countries.

Certification representative at the event (Photo: DNHN)

Expect new handshakes.

The forum was organized with the participation of representatives of departments and departments in Ho Chi Minh City including Ms. Tran Thi Tuyet Hong - Deputy Chief of Staff of the National Assembly Delegation and the People’s Council of Ho Chi Minh City, Mr. Tran Tan Ngo - Vice Chairman of the Central Committee of HNVN-CPC, Vice Chairman of Vietnam Business Club - CPC, The representatives came from the VN-CPC Friendship Association of the Department of Foreign Affairs, Department of Industry and Trade, Trade and Investment Promotion Center in Ho Chi Minh City.

Enterprises of 02 countries exchanged at the event (Photo: DNHN)

On the side of Cambodian trade agencies are Mr. OUCH SAVIN - Director of Cambodian Trade Department, Mr. SUON SOPHAL - Director of The Cambodian Development Department, Mr. Le Bien Cuong - Vietnam Trade Counselor in Cambodia.

Mr. Sok Dareth - Consulate General of Cambodia in Ho Chi Minh City HCM (Photo: DNHN)

Sharing on the sidelines of the event, Mr. Sok Dareth - Consul General of the Kingdom of Cambodia in Ho Chi Minh City said: This forum aims to introduce the bilateral trade and investment environment between the two countries and answer the questions of businesses of the two countries; online connection between enterprises participating in the conference with typical enterprises that have successfully conducted trade and investment activities in Cambodia to share practical experiences; and introduce the plan of trade and investment implementation of the co-organizer with the desire to bring opportunities for cooperation and trade development between enterprises of the two countries in areas such as real estate, infrastructure, retail ...

Enterprises displaying products at the event (Photo: DNHN)

"Indochina Holdings’ signing this time with the Cambodian Sales Office will be a new start for future cooperation, we expect more cooperation between businesses of the two countries in the near future, in order to bring commercial products closer to consumers around the world," he said. Sok Dareth said.

Vietnamese-Cambodian enterprises welcome new opportunities, solve old difficulties

Sharing about the advantages and difficulties, Ms. Hua Thi Bich Thu - General Director of Indochina Holdings said that quality and logistics are issues that many businesses are wondering.

On the Vietnamese side, a rice meter costs $19,000 but the shipping price is $18,000, so the price to U.S. consumers is doubled, and if you add other fees, it will push up the price very high and not compete with the Philippines or Thailand. The quality to enter the US market is required to have the FDA, which many Vietnamese businesses are still struggling with.

When it comes to price, Cambodia is doing better too. For example, in 2020, Cambodia won a large order for the United Nations, but Vietnam’s price was too high to enter.

"In Cambodia they have the Rice Association, they do a great job of connecting businesses. Currently, Vietnam has not arrived, and there are many lame, which makes us not connected to large markets such as New York or California. In these places, they have a focal market, we can connect with the central owners at the focal market, from which sending sample goods through them will connect the order, if they go to find the business on their own, it is very difficult, even the business does not prove financial capacity, it is impossible to buy goods.

Therefore, expecting the upcoming time, we hope to bring quality products to Western Mart supermarket system, this is an online supermarket chain. This supermarket chain is created by young Vietnamese people in the field of well-thought-out technology. More than anyone else, we understand that the rent of the premises is too high in this period of epidemic is difficult, if it can be put on the business floor, it will reduce many costs incurred for the business at this time", Ms. Hua Thi Bich Thu said.

Sharing about the transportation issue, Mr. Vo Doan Man - Co-founder of MTK Logistics Co., Ltd. said that Cambodia currently has two major ports: Phnom Penh (river port), and Sihanoukville port (deep-water port).

In terms of exports, Cambodian goods are transferred from these two ports to Cai Mep port (Vung Tau) to go directly to Europe and the US. The travel time from Cai Mep port to Los Angeles (West Coast USA) is about 18-21 days. From Cai Mep port to New York (east coast of the United States) or Europe about 30 days.

In addition, air transport from Phnom Penh airport has very few direct flights to other airports. They have to fly connecting flights to Tan Son Nhat airport, so Vietnam also participates in this supply chain and receives a profit from the transport of goods between other countries and Cambodia.

In terms of imports, Cambodia imports mainly from China following two popular routes: by road, going from China to Thailand or Vietnam. If traveling by seagoing vessel, it is necessary to pass through Cat Lai and carry out transit procedures to trucks or meters when arriving at Moc Bai border gate. At Moc Bai border gate, the car can run directly to Phnom Penh without having to go to the car (or the unregistered vehicles running directly through Cambodia, then the border gate will have to go to cambodian license plates to go to Phnom Penh.)

According to the regulations of the Ministry of Transport of the two countries signed by year, the number of vehicles moving back and forth at the border gate has a limited number, mainly for passenger cars. A business can register about 8 vehicles running through 2 countries under 2 border gates Moc Bai (Tay Ninh) and Massage (Binh Phuoc).

The shipping price for December 2021 from Phnom Penh to Los Angeles (passing through Cai Mep port) costs $ 11,000 per 20-ton meter and $16,000 per 40-ton peacock. If you go from Sihanoukville port plus another $500.

From the port of Sihanoukville to New York (East Coast of the UNITED STATES) passing through Cai Mep port the price of a 20-ton meter is $ 15,000, the price of 40 tons of meter -bow is $ 18,000-19,000. Plus $500 for a 20-ton container and $800 for a 40-ton container from sihanoukville port to Los Angeles.

According to Mr. Man, compared to the price in December of this year, 2-3 years ago was nearly 10 times higher. The reason for the epidemic is the severe lack of personnel in the ports, the speed of the cargo is slow, the ship has to wait in line a lot, causing a shortage of ships, lack of meters pushing up the price of freight, in addition to the increased trade situation and the increase in gasoline prices also affect the price of transportation.

 

Compiled from Business and Integration Magazine