HCMC – Vietnam has approved an import tax exemption for a quota of 300,000 tons of Cambodian rice per year, a move expected to significantly boost bilateral trade and stabilize regional food supply chains.
Under the newly issued Decree on the Special Preferential Import Tariff for the 2025–2026 period, this tax-free status applies to various rice products, provided they are accompanied by a Certificate of Origin (C/O Form S) issued by Cambodia’s Ministry of Commerce and cleared through 24 designated bilateral border gates. In addition to rice, Vietnam is also granting a duty-free quota for 3,000 tons of dried tobacco leaves, signaling a deepening of economic concessions between the two neighboring nations.
This specific exemption is part of a broader legal framework aimed at materializing the Vietnam-Cambodia Trade Enhancement Agreement. The 2025–2026 tariff schedule introduces absolute duty-free rates on hundreds of categories, covering a wide range of agricultural products and manufactured goods. By removing financial barriers, the Vietnamese Government aims to create a highly competitive environment for Cambodian exports while ensuring a steady flow of raw materials for Vietnam’s domestic processing and export industries.
Speaking in an interview with the Vietnam News Agency in Phnom Penh during the Vietnam Spring Fair 2026, Do Viet Phuong, head of the Vietnam Trade Office in Cambodia, emphasized that these preferential policies are the bedrock of a new era in bilateral cooperation. He noted that the recent tax adjustments are not merely technical measures but strategic tools that allow both countries to leverage their geographical proximity and economic synergies.
Phuong said there remains immense untapped potential for Vietnamese and Cambodian enterprises to expand their partnership, particularly in high-tech agriculture and consumer goods. He highlighted that events like the Spring Fair 2026 serve as vital platforms for businesses to navigate the new tariff landscape and establish long-term supply chains. With Vietnam’s domestic market exceeding 100 million people and Cambodia’s rising production capacity, Phuong believes the combination of favorable tax regimes and proactive trade promotion will drive up bilateral trade, solidifying economic ties as a fundamental pillar of the two countries’ relationship.
