17:48 | 02/04/2015 Trade
(VEN) - Vietnamese businesses exported goods worth US$2.66 billion to Cambodia in 2014. It is important to promote trade with Cambodia to make bilateral trade reach US$5 billion as targeted in 2015.
According to Cambodian businesses, Vietnamese goods have attracted increasing numbers of Cambodian consumers, with Vietnamese goods in Cambodia are mainly sugar, milk, coffee and processed foods.
Center for Business Study and Assistance (BSA) Director Vu Kim Hanh said that survey teams should introduce businesses to marketplaces so businesses can learn about demand and purchasing power and make it possible for businesses to meet distributors and explore demand for various commodities by Cambodian consumers.
Ho Chi Minh City Investment and Trade Promotion Center (ITPC) Director Pho Nam Phuong said while businesses have focused on markets in Phnom Penh and Siem Reap, they should pay increasing attention to Battambang in 2015 because it is the center of six Cambodian northwestern provinces. Battambang is the third largest province in terms of population in Cambodia, after Phnom Penh and Siem Reap. It is also a major international tourist center that attracts three million visitors annually, making Battambang ripe for investment. It encourages investment in agriculture, agricultural production services, farm produce processing and tourism.
According to Phuong, people in northwestern Cambodia mainly use Thai and Chinese goods. “We want to penetrate this market to increase the market share of Vietnamese goods there. If Vietnamese businesses invest in transportation and distribution and improve product quality and design they can carve out a major niche in this market,” Phuong said.
To penetrate deeper into the Cambodian market, Vietnamese enterprises should establish distribution networks. A modest number of Vietnamese businesses have set up shop in Cambodia for direct distribution to end-consumers in Cambodia. There are small Cambodian traders and retailers looking for partners to distribute Vietnamese goods.
Cambodian distributors don’t want to do long-term investment but to earn a profit quickly so the cost of commodity circulation is always high and unstable. Therefore, development of distribution networks to transfer goods to Cambodian distributors is necessary.
The Ho Chi Minh City Expo 2015 exhibition and trade fair will take place from May 1-5 in Battambang. It is expected to have about 150 booths from 90 Vietnamese businesses operating in the fields of food processing, household plastics, products for agricultural production, construction and interior decoration materials, textile and garment, leather and footwear, cosmetics, tourism and other services.
Along with the exhibition and trade fair, there will be a survey of businesses in the areas of Poipet and Doong border crossings. The survey aims to help businesses do market and product assessments. By Thanh Thanh