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  • Trade transactions with Cambodia increased sharply 11/21/2022

    Nov 21st, 2022

    At the end of 2017, Mr. Nguyen Duc Thanh, then the Chairman of the Vietnam Cashew Association (Vinacas), led the business delegation (DN) to promote trade in Cambodia for the first time. The work program at that time was the key to building a raw material area of ​​1 million tons of cashew in Cambodia. Recalling that time, Mr. Nguyen Duc Thanh said: “ From 2014 onwards, Cambodia only sold about 30% of the cashew nut production it harvested to Vietnam. Although the quality was relatively good, the output of Cambodian cashew was not much at that time, so the main raw cashew suppliers for Vietnam were still African countries. However, there is a huge risk for Vietnamese enterprises that the transaction method and transportation distance from Africa to Vietnam are too far. Our orientation at that time was to move raw materials to Cambodia, which was close, shared the border and made payment easier . Good morning transactions with broken Cambodian elephants Vietnam grows agricultural export turnover thanks to raw materials from Cambodia At that time, the cashew growing area in Cambodia at its peak reached 300,000 hectares, but due to unstable raw cashew prices and weak production organization, the area was reduced to just over 100,000 hectares. Cambodia wishes to have Vinacas support in the selection of varieties, cultivation techniques, harvesting and preservation techniques, etc., in order to increase the yield and quality of cashews, as well as ensure profits for participating farmers. The program of 1 million hectares of cashew in Cambodia was quickly implemented soon after. With cooperative efforts from both sides, so far Cambodia's raw cashew production has skyrocketed. According to data from the General Department of Customs and many other statistics, in 2021 Cambodia will export approximately 1 million tons of raw cashew nuts to Vietnam, becoming the largest supplier of raw cashew nuts to Vietnam. According to Vinacas, the biggest problem of Vietnam's cashew industry in recent years is the lack of raw material areas, labor shortages, and labor for harvesting and preliminary processing. The domestic output of raw cashew nuts can only meet 25-30% of the factories' demand for raw materials, the rest must be imported. With the advantage of geographical location, climate, soil and varieties, if there is good coordination and organization, Cambodia can produce 1 million tons of raw cashew, surpassing Ivory Coast and becoming a raw cashew producer. largest in the world, and become an important supplier for Vietnam. In mid-November, the Vinacas delegation led by Mr. Bach Khanh Nhut, Vice President of Vinacas, came to Cambodia to attend a specialized seminar with the aim of strengthening cooperation with friends in this field. According to Mr. Nguyen Duc Thanh, since the program of 1 million tons of cashew, many new factory projects have also been implemented to take advantage of the raw material area. In the past two years, the cashew industry has faced difficulties due to epidemics and wars and inflation in the world, but the above difficulties only exist in a certain period, when the economy and the consumption market recover, the cashew is still a major turnover contributor. Similarly, Vietnam is currently Cambodia's largest pepper consumption partner with approximately 90% of output. Talking to Thanh Nien, Ms. Hoang Thi Lien, President of the Vietnam Pepper Association, said: “ In recent years, many investors from Vietnam have come to Cambodia to grow pepper and this country's output every year. from 15,000 to 16,000 tons. 90% of this pepper is consumed by Vietnamese enterprises, only a few are sold through Laos, Thailand... In terms of quality, Cambodian pepper is absolutely not inferior to Vietnam and can meet the source of raw materials when domestic needs ". Vietnam's trade surplus to Cambodia is nearly billion USD In the opposite direction, the export turnover of Vietnamese goods to Cambodia also increased sharply. In the context of high transportation costs, the cashew material area from Cambodia is a great advantage to help Vietnamese processing enterprises reduce costs and increase competitiveness with other exporting countries. Mr. Bach Khanh Nhut, Vice Chairman of Vinacas The latest data from the General Department of Customs shows that by the end of October, Vietnam's exports to Cambodia reached nearly US$4.94 billion, up 25.6% over the same period last year, equivalent to an increase in turnover. 1 billion USD. Notably, although it is only the end of October, Vietnam's export turnover to Cambodia is higher than in 2021. In 2021, Vietnam's exports to this neighboring country will reach $4.83 billion. In which, the groups of export products with large turnover, reaching 100 million USD or more are iron and steel, textiles, petroleum, fertilizer, paper and paper products... Particularly, petroleum exports to Cambodia will increase in 2022. nearly 79% over the same period last year, equivalent to an increase of 245 million USD, reaching 556 million USD. Leading is iron and steel with more than 1 million tons, turnover of 827 million USD. In contrast, Vietnam's imports from Cambodia in the past 10 months reached 4.13 billion USD, up 4.8% over the same period last year. Thus, in the past 10 months, Vietnam had a trade surplus of 810 million USD. The two largest import groups are rubber and cashew nuts with a turnover of more than 1 billion USD. Specifically, rubber imports increased by 16.4%, equivalent to 180 million USD (reaching 1.28 billion USD), but the import of cashew nuts dropped sharply from 1.85 billion USD to 1.08 billion USD. . The forecast shows that the total bilateral trade turnover between Vietnam and Cambodia this year may reach 10 billion USD.