09:57 | 23/06/2016 Cooperation
Vietnam and Cambodia are two neighbouring countries with a time-honoured friendship. Over the past years, the Vietnam-Cambodia cooperation and friendship have been continuously developed in all fields, particularly in the economy, trade and investment.
Cambodian Deputy Prime Minister Men Sam On visits the Angkor Dairy Factory
As of May, 2016, Vietnamese firms had 183 investment projects totalling US$2.85 billion in Cambodia. Of over 50 countries and territories that invest in Cambodia, Vietnam remains among the top five foreign investors (after China, the Republic of Korea, the EU and Malaysia). The investment projects in Vietnam into Cambodia focused on the agricultural sector (accounting for nearly 70% of the registered capital), financial, banking and insurance services (9.4%), and telecommunications (7.5%). The remaining projects are in the fields of aviation, mining, manufacturing and processing industry, transport and storage, import and export, health, construction, tourism and hotels, real estate and other services.
Vietnamese enterprises have contributed significantly to the development of the rubber industry in Cambodia. So far, Vietnamese rubber companies have planted over 160,000 hectares, of which 1,300 hectares has begun to be exploited.
Vietnam’s investment projects in the finance and banking sector have also contributed to promoting the development of the financial and monetary market in the neighbouring country.
The Bank for Investment and Development of Cambodia (BIDC), a subsidiary of the Bank for Investment and Development of Vietnam (BIDV) which became operational in 2009 is among the largest banks in Cambodia. It was awarded the ‘Bank with the most Promising Growth in Cambodia’.
Viettel Cambodia aka Metfone, a subsidiary of the Vietnam-based telecom group Vietttel is currently the largest telecommunications service provider in Cambodia. Meanwhile, Established in 2009, Cambodia Angkor Air is a joint venture between Vietnam’s national flag carrier Vietnam Airlines and the Royal Government of Cambodia, with the former holding 49% of the airline. The carrier owns six aircraft, including two ATR airplanes and four Airbus A320 planes. It officially launched a direct route connecting Ho Chi Minh City to Preah Sihanoukville on June 17. Angkor Air is planning to double its fleet to 12 jets by 2020 and launch new flights to Hong Kong, Singapore, the Republic of Korea and India to meet the increasing travel demand.
In the health sector, the Cho Ray-Phnom Penh General Hospital was build with a phase-1 total investment of nearly US$29 million and became operational in 2014. The hospital has actively engaged in charitable activities in Cambodia, such as free checkups and surgeries for needy people.
The Angkor Dairy Factory is a joint venture between leading Vietnamese dairy producer Vinamilk, fully known as Vietnam Dairy Product JSC, and Phnom Penh-based BPC Trading Co. Ltd. The Vietnamese firm was licensed to implement the project in 2014, and now holds a majority stake of 51% in the joint venture. Spanning nearly 30,000 square metres in the Phnom Penh Special Economic Zone, Angkor Dairy Factory is capable of producing 19 million liters of milk, 64 million cups of yogurt and 80 million cans of sweetened condensed milk annually during its first phase. The products are branded Angkormilk.
Vietnamese enterprises have also performed as responsible investors. They engage in activities related to social security, training of human resources, and improving local people's living conditions, which has been highly acknowledged and appreciated by the Cambodian Government and people.
Vietnam is Cambodia’s third largest trade partner with two-way trade reaching US$3.37 billion in 2015 and US$944.6 million in the first quarter of this year. Vietnam's key export products to Cambodia include petrol, oil, steel, fertilizers, garments and textiles, while Cambodia is Vietnam’s 16th largest export market with steel, fertilizer, garments, equipment and machinery, and plastics making up a major proportion. The two countries are striving for US$5 billion in bilateral trade in the future.
Over the past years, the two Governments have paid special attention as well as created favourable conditions to promote bilateral economic co-operation. Both countries have worked out measures to expand economic and trade co-operation, contributing to further deepening the traditional friendship and comprehensive co-operation between the two nations./.