Vietnam - Cambodia - Laos: The friendship and solidarity relationship forged through challenges is an invaluable asset for the people of the three countries

DNHN - Vietnam's investment in Cambodia and Laos remains among the top, with 205 projects in Cambodia (USD 2.95 billion) and 245 projects in Laos (USD 5.5 billion).

"After the COVID-19 pandemic, the global economic picture is marked by stagnation, complex developments, and slow recovery. Our three countries need to make further efforts to overcome this difficult phase. The people and governments of the three countries are very committed to further tightening the friendship between Vietnam, Laos, and Cambodia," emphasized Bui Xuan Cuong, Deputy Chairman of Ho Chi Minh City People's Committee, at the Vietnam - Cambodia - Laos Business Forum held in Ho Chi Minh City in 2024, organized by the Vietnam - Cambodia Friendship Association of Ho Chi Minh City on the morning of October 6, 2024.

Deputy Chairman of Ho Chi Minh City Bui Xuan Cuong believes that Vietnam, Cambodia, and Laos are three neighboring countries that have been closely connected for generations, with their people sharing the gentle Mekong River, abundant in silt and rich in the affection of the three nations. The friendship and solidarity relationship among the three countries have been forged through the historical struggle against a common enemy, representing an invaluable asset of the brotherly peoples of Vietnam, Cambodia, and Laos, cultivated by generations. Among these, the pillar of economic and trade cooperation plays a very important role in strengthening the relationship between the three countries for sustainable development.

In recent years, bilateral trade cooperation between Vietnam and Cambodia has increased impressively. In 2022, the trade turnover between the two countries reached over USD 10.5 billion. In 2023, there was a slight decrease, but this year it is expected to reach USD 10 billion, striving to achieve USD 20 billion as soon as possible as required by the leaders of both countries. Specifically, the trade turnover between Vietnam and Laos continues to grow well, reaching approximately USD 1.65 billion in 2023. Vietnam's investment in Cambodia and Laos remains among the top, with 205 projects in Cambodia (USD 2.95 billion) and 245 projects in Laos (USD 5.5 billion). Notably, enterprises from Ho Chi Minh City, such as Cho Ray Hospital - Phnom Penh, exemplify the effective cooperation between Ho Chi Minh City and Phnom Penh (Cambodia).

Deputy Chairman Bui Xuan Cuong also noted that to serve the goal of sustainable economic development, the Vietnamese government has focused on building transportation infrastructure connecting the three countries, such as the project to build the Hanoi - Vientiane highway, the Ho Chi Minh City - Moc Bai highway project connecting to Phnom Penh, and many other projects.

It is known that as of June 20, 2024, there were 40,544 foreign investment projects in Vietnam with a total investment capital of nearly USD 484.78 billion. Among them, Cambodia has invested in 35 projects with a total investment of nearly USD 76.75 million, ranking 51st out of 146 countries and territories investing in Vietnam; Laos has invested in 11 projects with a total investment of nearly USD 71.13 million, ranking 54th out of 146 countries and territories investing in Vietnam.

Regarding Vietnam's outward investment situation, as of June 20, 2024, Vietnam has 1,743 valid overseas investment projects with a total investment capital of over USD 22.25 billion. Vietnam's foreign investment is concentrated mainly in the mining sector (31.6%); agriculture, forestry, and fisheries (15.5%); telecommunications; automotive manufacturing, etc. Among them, Laos is the leading country receiving investment from Vietnam (24.7%); Cambodia is the second country receiving investment from Vietnam (13.1%).

At the forum, Mr. Oknha Leng Rithy, Chairman of the Vietnam Business Association in Cambodia (VCBA), stated that recently, the Vietnamese business community in Cambodia has made continuous efforts to conduct business investment activities in compliance with the laws of the host country, overcoming many difficulties, achieving effective business targets, profitability, and contributing significantly to the state budget of both countries. The business community has also been actively working to promote economic, trade, and investment cooperation between the two countries, supporting job creation for many local workers.

As a business operating in both Vietnam and Cambodia, entrepreneur Nguyen Thi My Duyen, Director of Khai Duyen Company (Vietnam) and Than Tai Import-Export Trade Promotion Service Company (Cambodia), specializing in rest stops, distributing consumer food items, and cosmetics, also shared many issues related to trade between the two countries. She believes that instead of serving only one country, businesses can now access the markets of three countries. This allows businesses to expand their production scale and increase revenue by reaching more customers. However, this female CEO also stated that businesses still face many difficulties regarding customs procedures. Despite having free trade agreements, customs procedures between the three countries remain complex and not synchronized, directly affecting delivery schedules and logistics costs.

In addition, transportation infrastructure also poses a barrier. While there are already road and railway connections, not all areas are well connected, especially in border regions where the warehousing systems do not meet standards, and the digitization process causes delays in handling information and documents related to transport.

Mrs. Duyen also specifically warned about competition with countries in the region, such as Thailand and China, due to the longstanding presence of goods from these countries in the Cambodian and Laotian markets regarding both price and quality. Furthermore, each country has different standards and qualities; to adapt to these differing regulations, businesses must adjust their products, which increases costs.

Nevertheless, according to Nguyen Thi My Duyen, cooperation between the three countries still helps businesses become a stronger economic block and compete better in the international market.

Speaking at the closing of the forum, Dr. Le Hong Liem, former Deputy Head of the Central Inspection Commission, Vice Chairman of the Vietnam - Cambodia Friendship Association, and Chairman of the Vietnam - Cambodia Business Club, reaffirmed that Vietnam, Cambodia, and Laos, despite their differences, share a common aspiration to rise and a desire to build a prosperous, peaceful, and sustainable Southeast Asia. "This forum is a clear testament to the commitment to cooperation and sustainable development among the three countries. I believe that after this forum, the cooperation opportunities discussed will quickly translate into practical actions, bringing tangible benefits to the business community and people of the three nations," Dr. Le Hong Liem said.

In the context of the world undergoing many fluctuations and facing significant economic challenges, climate change, and geopolitical issues, strengthening solidarity, cooperation, and sharing experiences between neighboring countries is of utmost importance. Dr. Le Hong Liem, Vice Chairman of the Vietnam - Cambodia Friendship Association, emphasized: “We not only need to seize opportunities but also must work together to overcome difficulties to build a brighter common future. This Vietnam - Cambodia - Laos Business Forum is not only an opportunity to expand markets and enhance competitiveness but also a solid foundation for us to build a long-term strategic partnership.”

Uyen Nhi - Phuoc Lap