Cambodia And Vietnam – Closer Relations

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Two way trade

Definition of trade:

1. To exchange one item for another, one person or firm providing an item (good, service, asset, etc.) to another person or firm, with the latter providing a different item to the first in return, as payment.

2. To export and/or import.

3. The quantity or value of exports and/or imports.

between Cambodia and Vietnam has enjoyed strong growth

Definition of growth:

See economic growth. In the last few years, but only recently has economic relations.

Definition of economic relations:

Economic activity that involves participants of two countries, most obviously trade but other forms as well. Some pairs of countries that have essentially no political relations nonetheless have economic relations.

between the two countries received a significant boost. The signing of key bilateral

Definition of bilateral:

Between two countries, in contrast to plurilateral and multilateral. Agreements along with Cambodia’s faltering trade with Thailand during the last few months, provided a recent push to trade between Cambodia and Vietnam, with figures reaching $1.7 billion in 2008. Recent investments and agreements between both countries are expected to further expand bilateral economic relations and trade in the next following years.

“Vietnamese side has invested 100 million U.S. dollars capital.

Definition of capital:

1. The plant and equipment used in production.

2. One of the main primary factors, the availability of which contributes to the productivity of labor, comparative advantage, and the pattern of international trade.

3. A stock of financial assets.

in Cambodia Angkor air,” Sok An, deputy prime minister and minister in charge of the Council of Ministers, said at the signing ceremony which was presided over by Prime Minister Hun Senand visiting Vietnamese Deputy Prime Minister Truong Vinh Trong, who is also representative of the prime minister of Vietnam.

“Cambodia will have 51 percent share and Vietnamese side controls 49 percent,” Sok An said, adding that the Cambodian new.

Definition of new:

Net economic welfare airline will help to push the tourism sector.

Definition of sector:

A portion of the economy producing a particular category of goods or services, as the agricultural sector, the banking sector, etc. In the Kingdom while the world has met with global economic and financial crisis. The Vietnamese investment.

Definition of investment:

1. Addition to the stock of capital of a firm or country.

2. Purchase of an asset, real or financial.

3. The use of resources today for the purpose of increasing productivity or income in the future.

on Cambodia Angkor Air will be processed for30 years, Sok An said.

Cambodian and Vietnamese relations have not been fully maximized in the past, bilateral economic relations between the two countries catapulted after the signing of a bilateral agreement in 2007, aimed at expanding Cambodia- Vietnam trade during the 2007-2015 period. In 2006, bilateral trade stood at $1 billion and enjoyed only slight growth in 2007, with total trade reaching $1.2 billion. The bilateral agreement signed in 2007, allowed for higher investments on special economic zones and increased trade volume between the two countries, resulting in a $400 million increase in 2008, with total trade totaling $1.7 billion.

Vietnam exported about $1.45 billion worth of goods to Cambodia in 2008, including agricultural machines, pesticides, farm produce, seafood, and petrol. Cambodia’s exports to Vietnam during the same year totaled around $1.35 billion and mainly included grains, tobacco, cassava and wooden products.

Cambodia’s slowing bilateral trade with one of its major trading partners, Thailand, due to border tensions in the last half of 2008, has further encouraged economic relations between Cambodia and Vietnam. In fact, the conflict with Thailand, encouraged the signing of several bilateral agreements promoting expansions in current and future bilateral trade between Cambodia and Vietnam.

Further boosting trade between the two neighboring countries, is the development.

Definition of development:

Economic development

of special economic zones along the countries’ common borders. The Cambodian government has licensed six special economic zones along the Vietnam border since 2007, two of which are already in operation and four currently in development stages.

The agreement signed in November, included the construction of a new $100 million special economic zone.

Definition of special economic zone:

These exist in several countries, including especially China, and their characteristics vary. Typically they are regions designated for economic development oriented toward inward FDI and exports, both fostered by special policy incentives that may include being an EPZ. In the Vietnam-Cambodia border, expected to bolster trade, employment

Definition of employment:

People working for pay or in a family-owned enterprise or farm. Much more specific definitions are used for measuring employment by national statistical agencies such as the US Bureau of Labor Statistics. Contrasts with unemployment. And local production. The zone will encompass 100-hectares of land that will be mainly catered to agricultural processing companies. The project is currently under construction and is scheduled for completion in 2015. The economic zone will provide jobs for 5,000 to 10,000 people, and hopes to increase bilateral trade by $1 – 2 billion a year.

Cambodia and Vietnam plan to establish more special economic zones along the border, which would further increase trade expansion.

Moreover, trade is likely to increase as Cambodia raises it production of rice, rubber and cassava due to increased demand.

Definition of demand:

1. The act of offering to buy a product.

2. The quantity offered to buy.

3. The quantities offered to buy at various prices; the demand curve.

from Vietnam.

Stronger anti-smuggling measures will aim at increasing trade revenue.

Definition of revenue:

Referring to a tariff, the money collected by the government. Equals the size of the tariff times the quantity of imports. An analysis of the effects of a tariff needs to account for the revenue, and in a general equilibrium model it must specify whether and how the revenue is spent. Between the two countries as well. Additionally, Thailand’s continuing political instability.

Definition of instability:

The property of not being stable; thus, moving around over time, and/or uncertain in its movement over time.

combined with still occurring border tensions with Cambodia, is expected to result in a flat bilateral trade growth between the two countries, encouraging stronger economic relations between Cambodia and Vietnam. With both economies likely to recover from the impacts of the economic crisis by the end of 2009, bilateral trade between Cambodia and Vietnam are expected to reach over $2.3 billion in 2010 and $7 billion through 2015.


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