Cambodia Vietnam Trade Deficit: A Significant Drop in 2025
Cambodia’s trade deficit with Vietnam dropped significantly in 2025. The trade gap fell by a third in the first ten months, from nearly $400 million in 2024 to just over $300 million.
Key Factors Behind the Decline
Several factors contributed to the narrowing deficit. Cambodia’s agricultural output increased. Local manufacturing also improved, and the country diversified its import sources. These changes helped reduce the deficit.
Bilateral trade between Cambodia and Vietnam reached $6.58 billion, up 1.3% compared to 2024. Cambodia’s exports to Vietnam totaled $3.14 billion, a 3% increase. Meanwhile, imports from Vietnam were slightly down by 0.2%, at $3.44 billion.
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How Cambodia’s Exports Are Growing
Hong Vanak, an economist at the Royal Academy of Cambodia, stated that agricultural production has been rising in Cambodia. This boost is directly linked to the country’s improved export capacity. New investments in manufacturing and processing will further strengthen this trend. The temporary closure of the Cambodian-Thai border also helped increase exports to Vietnam.
Vanak added that Cambodia’s growing production and diversified imports will help sustain export growth in the future.
Cambodia’s Position in Regional Trade
Vietnam remains Cambodia’s third-largest trading partner, after China and the US. In 2024, trade with Vietnam made up 12.53% of Cambodia’s total trade, valued at $52.58 billion.
Cambodia’s trade deficit with Vietnam was $301.98 million in the first ten months of 2025, down from $398.4 million during the same period in 2024. This shows that the country’s manufacturing and export sectors are improving.
Strengthening Bilateral Cooperation
Cambodia and Vietnam continue to strengthen their ties, especially in trade and tourism. At the Cambodia-Vietnam Trade Promotion Programme on August 28, both governments emphasized the importance of cooperation. They highlighted sectors like agriculture, agro-industry, and logistics as key areas for growth.
Seang Thai, Secretary of State at the Ministry of Commerce, said that improving trade networks and transport infrastructure is vital. He also stressed that boosting the value of agricultural products is crucial for both countries’ economic growth.
Looking Ahead: Future Trade Prospects
Cambodia’s ongoing investments in agriculture and manufacturing should lead to further reductions in its trade deficit with Vietnam. Both countries are working together to improve trade infrastructure and supply chains. These efforts will help sustain long-term growth and improve the livelihoods of people in both nations.
