HCMC — The Ministry of Finance is seeking feedback on a draft government decree to eliminate the import tariff on several Cambodian items.
The draft decree is aimed at advancing a 2025–2026 bilateral trade agreement between the two nations. If approved, the special preferential import tariff schedule would allow products from Cambodia, including agricultural goods, seafood, timber, textiles, and production inputs, to enter Vietnam duty-free, provided they meet origin rules and are accompanied by valid documentation.
A reciprocal policy would apply to Vietnamese exports to Cambodia, the ministry said.
The zero-tariff policy is expected to encourage a shift from informal cross-border trade to formal channels by lowering taxes and simplifying customs procedures. Vietnamese firms could benefit from expanded access to raw materials for export processing.
However, the move could intensify competition for domestic producers, especially in agriculture and consumer goods, as cheaper Cambodian imports gain a stronger foothold in the Vietnamese market. Experts warn this will test the resilience of Vietnam’s agricultural sector under deeper regional economic integration.
The draft decree, effective through the end of 2026, would complement Vietnam’s commitments under the ASEAN Trade in Goods Agreement (ATIGA) and support the bilateral goal of boosting annual trade volume with Cambodia to US$20 billion by 2026.
Vietnam and Cambodia share over 1,100 kilometers of border. In 2023, bilateral trade reached approximately US$10.5 billion, according to official data. The Ministry of Finance is currently soliciting feedback from ministries, provincial authorities, and business associations before finalizing the policy.
