Vietnamese brands step up efforts to replace Thai products in Cambodia
Industry insiders told Khmer Times that marketing teams representing various brands from Vietnam are camping in Phnom Penh to strike a deal with retailers.
'In the past two weeks, Vietnamese brands have substantially increased their market presence, from biscuits to milk and chocolates to noodles,' a manager with one of the leading retail outlets in the country said.
'Although Malaysian brands are also in the race, Vietnamese brands have been the most successful in terms of filling the gap,' he said, pointing at packets of Dalat Milk completely filling the rack once occupied by Thai Dutch Mill dairy products.
'Only Thailand, Laos and Vietnam have land border trade with Cambodia. After the border tensions, land border trade with Thailand remains zero, and Laos simply don't have big brands capable of suddenly scaling up operations and product base.
'So, I must tell it's a goal post with no wicket keeper for Vietnamese brands. They are going to benefit in a big way until the Kingdom solves its border disputes with Thailand.'
Another source told Khmer Times that the timely supply by Vietnamese brands helped many supermarkets in Phnom Penh maintain a consistent business. 'There was a sudden panic as land imports were banned from Thailand. Thai products constituted around 25 percent of our sales, and many of them were the most preferred choices of our customers.
'However, consistent supply by Vietnamese brands helped us maintain the sales flow without any disruption. We are also planning to take up the distribution of some Vietnamese brands, which have less market presence in the Kingdom.'
Many Vietnamese brands such as Vifon, Acecook and Vi Huong have a strong presence in the processed food retail markets of Cambodia. Moreover, major Vietnamese firms, including Viettel (telecom), BIDV (banking), Hoang Anh Gia Lai (agribusiness) and Vietnam Rubber Group, have already established significant operations in the Kingdom.
According to Khac Giang Nguyen, Visiting Fellow at ISEAS – Yusof Ishak Institute, this development also mirrors growing bilateral ties between Vietnam and Cambodia.
'Faced with US tariff threats, Vietnam and Cambodia are recalibrating their economic partnership. Bilateral meetings and trade agreements signal a shift towards regional economic cooperation in 2025,' he observed.
'The investments by Vietnamese firms connect Cambodian firms to broader regional supply chains while providing markets for Cambodian agricultural products within Vietnam's food processing sector.'
In another development, the Cambodian Chamber of Commerce and the Vietnam-Cambodia Business Association are set to sign a memorandum of understanding (MoU) tomorrow at the Vietnam-Cambodia Business Networking Conference 2025 that will be held in Ho Chi Minh City.
Vietnamese media reported that around 200 enterprises are expected to participate in the event, including 100 Cambodian firms and 100 Vietnamese businesses operating in key sectors such as agriculture, aquaculture, food, consumer goods, machinery, equipment, and fertilisers – 'areas where Vietnam has strong export potential and Cambodia has rising demand'.
'The conference is expected to contribute to the sustainable growth of Vietnam–Cambodia trade, support supply chain stability, and create new cooperation opportunities with both Cambodia and Thailand,' a report in Vietnam Net Global said.
'It also seeks to enhance the long-term presence and competitiveness of Vietnamese goods in the Cambodian market, which is geographically close and relatively barrier-free, with rapid consumer demand growth,' it added.
Khmer Times earlier reported that Cambodian consumers were adapting to the market shift, given the fact that Thai products were fast going off the shelves, and being replaced by new brands from other countries. - Khmer Times
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