Currency News on Cambodia, Vietnam and Thailand
News on Cambodia, Vietnam and Thailand currencies
Movement of funds between Cambodia Thailand and Vietnam is largely attributed to trade. The poor diplomatic relations amongst the three countries in earlier years had adverse effects on trade. In recent years, though, Cambodia and Thailand’s bilateral trade figures have been on an upsurge, with efforts among the countries to repair their relations appearing to bear fruit. Data collected in 2012 valued Cambodia and Vietnam’s trade at approximately US$3.3 billion. The two nations set sights on achieving a US$5.5 billion trade target by 2015. The IMF’s figures on Vietnamese exports to Cambodia stood at approximately US$3billion in 2012 while Cambodia to the former was valued at US$450 million for the same period. Initially, trade figures between the two countries was a paltry US$150million but higher prospects have been witnessed in recent years largely due to goodwill and better ties between them. Vietnam exports a huge proportion of their goods to Cambodia and data from trade officials rank Vietnam as the second largest trade partner to Cambodia. Rubber, steel, and food, where garments are just some of the products traded between the two countries. The flow of currency considering such trade numbers between these two countries is definitely at a high.
Currency for Cambodia, Currency for Vietnam, Currency for Thailand
Pundits have argued though that trade between Cambodia and Vietnam is skewed in favour of the latter. Cambodia’s bilateral trade growth has been stunted over a long while with 17% being recorded in 2012. The balance of trade between the two countries is also lopsided with Vietnam exports outweighing Cambodia’s by huge margins. Expansion of trade has done more to enlarge this disparity. Further comparisons between the two countries seem to suggest that Cambodia needs this bilateral trade more as compared to Vietnam since it constitutes about 15% of its trade as compared to 1.5% for Vietnam.Despite all this, the two countries continue to forge on, with a 2016 report estimating bilateral trade between the two countries to be worth US$13 billion. The formation of the Association of Southeast Asian Nations (ASEAN) economic community has also brought with it great benefits. The bloc has a slightly over 600million population which is a vast target market for any of the countries to tap into.
Thailand and Cambodia have had a long history of trade and commerce that have been affected by cycles of political instability which has characterised Thailand for a long time. Trade figures in 2006 between the two countries painted a grim picture but a quick return to normalcy saw positive results in 2010. The push by both governments to see improved diplomatic relations between them will certainly see growth in bilateral trade. Continued efforts by both governments to reduce tariff barriers and streamline business will see continued growth in trade amongst the three countries. Free movement of people and goods between these countries will greatly boost currency transfers within the two economies.
Trade between nations is greatly influenced by diplomatic relations and political stability. Good relations influences the level of trust, policies and currency exchange between nations.Governments should endeavour to foster ties with partner states to boost commerce and currency transfers.