Bilateral Trade Promotion Cambodia-Vietnam

Announcement on: Bilateral Trade Promotion Coordination between the Royal Government of the Kingdom of Cambodia and the Government of Socialist Republic of Vietnam, signed on April 28, 2025, in which the Kingdom Of Cambodia receives zero tax preferences. % of goods of Cambodian origin, 28 tariff lines.

In a landmark development aimed at strengthening regional trade ties, the Royal Government of the Kingdom of Cambodia and the Government of the Socialist Republic of Vietnam officially signed the Bilateral Trade Promotion Coordination Agreement on April 28, 2025. The agreement reaffirms both nations’ commitment to enhancing economic cooperation, facilitating market access, and driving inclusive growth within the region.

Cambodia Secures Zero-Tariff Preferences on 28 Tariff Lines

As part of the agreement, the Kingdom of Cambodia will benefit from a zero-tax (duty-free) preference on a specified percentage of goods originating from Cambodia. This preferential treatment applies to 28 designated tariff lines, providing Cambodian exporters with enhanced access to the Vietnamese market.

The agreed tariff lines primarily cover Cambodian-origin products that are competitive in terms of quality and volume, including agricultural produce, processed food items, light industrial goods, and other priority export categories. These measures are expected to reduce export costs, improve competitiveness, and stimulate growth in Cambodia’s small and medium-sized enterprise (SME) sector.

Strengthening Bilateral Relations

The bilateral coordination mechanism is designed to ensure ongoing policy dialogue, technical cooperation, and streamlined customs procedures between the two governments. It also addresses non-tariff barriers, improves logistics connectivity, and promotes trade facilitation through mutual recognition of standards and certificates of origin.

Speaking at the signing ceremony, senior officials from both countries emphasized the historical friendship and growing economic interdependence between Cambodia and Vietnam. They reaffirmed their shared commitment to a rules-based, inclusive trade environment that benefits both economies.

Economic Impact and Future Prospects

This agreement is expected to boost Cambodia’s export performance, particularly for rural producers and labor-intensive industries. It aligns with Cambodia’s broader strategy to diversify export markets, increase trade volume, and capitalize on regional trade agreements including the ASEAN Economic Community (AEC) framework.

Cambodian exporters are encouraged to take full advantage of the zero-tax preferences by complying with rules of origin criteria and ensuring proper documentation. Training sessions and information campaigns are anticipated to help local businesses navigate the technicalities of cross-border trade.