Cambodia and Vietnam are looking to deepen bilateral trade and build more integrated supply chains as the two neighbours pursue an ambitious $20 billion trade target.
The push has gained importance as Cambodia seeks alternative trade routes amid disruptions to land trade with Thailand. Vietnam offers Cambodia a nearby market, logistics corridor and supply-chain partner, although experts say reaching the $20 billion target will require significant improvements in infrastructure, border procedures, investment and domestic processing.
Bilateral Trade Reaches Nearly $6 Billion
Cambodia-Vietnam two-way trade reached nearly $6 billion during the first eight months of 2026, up 7% year on year, according to General Department of Customs and Excise data.
Cambodia exported $2.96 billion to Vietnam, an increase of 7.6%, while imports rose 6.4% to $3.02 billion.
The trade deficit narrowed from $92.5 million to $63.2 million, while Cambodia's export coverage of imports improved to 97.9%.
Vietnam ranked Cambodia's third-largest trading partner, behind China and the United States, accounting for approximately 11.8% of Cambodia's total trade.
At the current pace, annual trade would reach roughly $9 billion, leaving a substantial gap to the $20 billion target.
Border Logistics Are Central to Growth
The two countries share a 1,137-kilometre border, with international and secondary crossings providing a foundation for expanding trade.
Experts cited in the report identified better roads, expanded logistics facilities and simplified customs procedures as priorities for reducing the cost and time of moving goods.
The proposed connection between the Phnom Penh-Bavet Expressway and Ho Chi Minh City-Moc Bai Expressway could further improve cross-border connectivity.
The Tan Nam-Meun Chey crossing also illustrates both the potential and challenges. Trade through the crossing grew strongly in the first half of 2026, although freight movement remains constrained by incomplete implementation of the bilateral road transport agreement.
Agriculture Could Drive More Trade
Agriculture represents one of the clearest opportunities for expanding bilateral commerce.
Cambodian agricultural products and raw materials already have demand in Vietnam, creating opportunities for deeper links with Vietnamese processing and distribution networks.
Experts pointed to products such as cashews, rubber, paddy rice, cassava, green beans and corn as areas with potential.
Expanding processing inside Cambodia could allow the country to capture more value before products enter regional supply chains, while creating additional demand for packaging, storage, transport and other supporting services.
Vietnam Could Become a Larger Investment Partner
Investment is another potential driver of stronger trade.
Vietnam ranked as Cambodia's third-largest source of foreign direct investment in 2025 and second among ASEAN investors, according to the Council for the Development of Cambodia.
Greater Vietnamese investment in agro-processing, manufacturing and logistics could create two-way trade flows involving machinery, production inputs, raw materials and finished goods.
The two countries have also identified telecommunications, renewable energy, infrastructure, digital transformation, finance and tourism as areas for expanded cooperation.
Experts Identify Key Barriers
Royal Academy of Cambodia policy analyst Sam Seun highlighted several areas requiring attention, including consumer confidence in Vietnamese products, smoother movement of Cambodian agricultural goods through border provinces and better transit arrangements for Cambodian trade passing through Vietnam to China.
He also called for stable prices for essential products such as fertiliser and stronger people-to-people relations through cultural exchanges.
Seun further argued that cooperation should generate mutual benefits, including greater sharing of technology and expertise in areas where Vietnam has stronger capabilities.
Paññāsāstra University of Cambodia Dean Kevin Nauen identified poor logistics infrastructure, non-tariff barriers, informal border costs and high transport fees as major obstacles.
He recommended modernising border logistics, digitising customs clearance, completing major transport corridors and strengthening sanitary and phytosanitary standards.
Nauen also argued that Cambodia needs to move beyond exporting mainly raw commodities and develop more domestic value-added processing.
Border SEZs Could Support Manufacturing
Nauen proposed modernising border Special Economic Zones with reliable, lower-cost energy and direct logistics connections.
He also highlighted tailored incentives for high-tech and agro-processing industries, streamlined digital investment approvals and expanded vocational training.
Stronger domestic supplier networks and intellectual property protection could encourage foreign manufacturers to establish higher-value production facilities connected to regional supply chains.
Vietnam as a Gateway to Regional Markets
Logistics Supply Chain and Brokers Business Association in Cambodia President Chea Chandara said Vietnam offers strong potential for Cambodia to expand trade.
He pointed to growing demand in Vietnam for Cambodian agricultural products, which can be processed there and subsequently exported to other markets.
Chandara also highlighted Svay Rieng's agricultural and industrial potential, as well as the importance of stronger connections between businesses on both sides of the border.
A Cambodian business delegation recently visited Ho Chi Minh City to explore trade and supply-chain opportunities, particularly for agricultural products.
The Bigger Opportunity: From Trade to Supply Chains
The $20 billion target is not simply a question of increasing the volume of goods crossing the border.
The experts cited in the report point toward a broader model in which Cambodian producers become more deeply integrated into regional manufacturing and agricultural value chains.
That could involve:
More Cambodian agro-processing
Better cross-border logistics
Digital customs procedures
Stronger domestic supplier networks
Modernised border SEZs
Greater Vietnamese investment
Improved market access for Cambodian products
More technical and vocational training
The objective would be to increase both the volume and value of bilateral trade.
Angkor Times Analysis
Cambodia's nearly $6 billion in bilateral trade during the first eight months of 2026 provides a substantial base, but reaching $20 billion will require a major expansion from the current level.
The more important issue is the structure of that trade.
The experts quoted in the source repeatedly point to the same challenge: Cambodia exports significant quantities of agricultural raw materials while importing higher-value manufactured goods, machinery, electronics and fuel.
Moving toward more domestic processing could allow Cambodian businesses to capture a larger share of the value generated along regional supply chains.
Vietnam can play an important role as a neighbouring market, investment source, processing partner and gateway to wider regional trade. At the same time, the source highlights the importance of avoiding excessive dependence on a single corridor or market and continuing to develop Cambodia's own logistics and production capacity.
The $20 billion target is therefore less about one headline number and more about whether Cambodia and Vietnam can build the infrastructure, investment links and commercial relationships needed to create deeper two-way supply chains.
Frequently Asked Questions
How much was Cambodia-Vietnam trade in the first eight months of 2026?
Two-way trade reached nearly $6 billion, up 7% year on year.
What is the bilateral trade target?
Cambodia and Vietnam have set a target of $20 billion in bilateral trade.
How much did Cambodia export to Vietnam?
Cambodia exported approximately $2.96 billion to Vietnam during January-August 2026.
What did Cambodia import from Vietnam?
Imports from Vietnam reached approximately $3.02 billion during the same period.
Which sectors could drive future trade?
Agriculture, agro-processing, manufacturing, logistics, infrastructure, digital transformation, renewable energy, finance and tourism have been identified as potential areas for greater cooperation.
What are the main barriers to reaching $20 billion?
Experts cited logistics costs, border procedures, non-tariff barriers, transport infrastructure, regulatory differences and Cambodia's limited domestic value-added processing capacity.