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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Data centres to boost construction jobs in 2H25
PETALING JAYA: The second half of 2025 (2H25) will see more job flows coming the way of construction companies, driven by key structural themes such as the expansion of data centres (DCs) and the ongoing development of the Johor-Singapore Special Economic Zone, which is gaining traction. Hong Leong Investment Bank (HLIB) Research said the DC award cycle in 2H25 follows multiple award decisions for DC tenders made in 1H25, including five multibillion ringgit tenders for one US-based hyperscaler. 'For the DC segment, we take a 'big is better'' view, anticipating further inroads to be made by sector's big-three players (namely Gamuda Bhd , Sunway Construction Group Bhd and IJM Corp Bhd ), riding on competitive advantages such as balance sheet strength, track record and the ability to leverage their integrated structures, including access to building material supply chains and bundled offerings in power and water infrastructure,' HLIB Research said in a report. While concerns have arisen from reports of potential artificial intelligence (AI) chip export curbs on Malaysia, these remain unconfirmed and lack actionable details. HLIB Research added that Malaysian contractors' reliance on US and Western hyperscalers for large DC projects somewhat mitigates these uncertainties, with exemptions possible – this remains their base case. Year-to-date contracts awarded have totalled RM28.9bil, marking a 39.5% year-on-year (y-o-y) growth. 'In 1H25, total DC-related contracts awarded came in at RM3.3bil (31% y-o-y fall), a slower pace when compared to the frenetic pace achieved in 1H24,' it said. Beyond DC projects, HLIB Research said 2H25 could see subcontract and system package awards for the Penang light rail transit, as well as progress on major Sabah and Sarawak road projects such as the Sabah–Sarawak Link Road. As for the commercial segment, including residential projects built on commercial land, HLIB Research said uncertainty over the sales and service tax (SST) treatment could weigh on activity in the third quarter of 2025. Developers may delay project launches until there is clarity on how SST will be applied to such developments. HLIB Research said the recent removal of the SST exemption for the construction sector, from 0% to 6%, should be manageable overall as most contracts allow for cost adjustments. 'We retain our 'overweight' sector call, anticipating sustained contract flows in 2H25 anchored by DCs, infrastructure rollout and still buoyant private sector sentiment. In our view, contractors broadly can still add to order books from the DC segment as well as infrastructure projects.' HLIB Research said forward sector valuations remains palatable, trading at price-to-earning and price-to-book multiples of 19.1 times and 1.3 times, respectively.
The Star
5 hours ago
- The Star
Vietnam will ban fossil-fuel motorcycles from central Hanoi over pollution concerns
HANOI, Vietnam (AP): Vietnam will ban fossil-fuel motorcycles and mopeds in the heart of the capital, Hanoi, starting July 2026, as part of a nationwide effort to curb air pollution, state media reported. The directive issued by Vietnamese Prime Minister Pham Minh Chinh applies to the area inside and along the main ring road that encircles the center of Hanoi. The local government has been tasked with phasing out the two-wheelers by the deadline. Like the rest of Vietnam, motorcycles are the main mode of transport for most of Hanoi's 8 million residents. The city has nearly 7 million motorcycles and just over a million cars. But as incomes rise and more people switch to private vehicles, air pollution from traffic has become a growing concern. Hanoi is often enveloped in thick smog, ranking among the most polluted cities worldwide. Vietnam also wants to switch from fossil-fuel to electric vehicles to cut pollution and tackle climate change. Local EV maker VinFast is leading the shift by holding nearly a fifth of the market share, according to the European Chamber of Commerce. But it still has only a small share of the two-wheeler market. But many are concerned about the unclear plan for phasing out the vehicles. Nguyen Van Hung, 62, has spent three decades driving a motorcycle taxi in Hanoi, now working with Grab, a ride-hailing app widely used across Southeast Asia. He worries the ban will hit the working class hardest. "It will affect people who rely on motorbikes to earn a living,' he said, pointing to delivery drivers, commuters and ride-hailing services. "How can people just discard their vehicles?' Others said that the timeline was unrealistic. Hoang Duy Dung, 32, an office clerk who works in the city center, said he supports cleaner air but believes it is too soon. "We need better public transport and more support before such a big change.' Central Hanoi is home to much of the city's business activity, including offices, government buildings and commercial hubs. A second phase, set to begin in January 2028, will expand the ban to a wider area and include all fossil-fuel two-wheelers, while also restricting some gasoline-powered cars. Other measures include upgrading waste-treatment plants, using digital tools to monitor pollution and introducing stricter penalties for violators. Whistleblowers could be rewarded for reporting environmental breaches. - AP
The Star
5 hours ago
- The Star
Vietnamese brands step up efforts to replace Thai products in Cambodia
PHNOM PENH (Khmer Times): Vietnamese firms are leaving no stones unturned to capture the vacant space after Thai brands were banned following the land border disputes between Cambodia and Thailand. 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
