Vietnam - Cambodia trade relations after Vietnam joined the World Trade Organization (WTO) - 2


INTRODUCTION


1. Urgency of the topic:

In the process of international economic development, regional economic integration is an inevitable process to maximize the advantages of each country, contributing to promoting economic growth. For countries with close geographical locations, international economic integration is expressed in many forms with many development opportunities.

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Vietnam and Cambodia are two geographically close countries with more than a thousand kilometers of land border and many border gates that facilitate trade between the two countries and border provinces. Vietnam and Cambodia have a close historical relationship and many similarities in culture and society... Diplomatic relations between Vietnam and Cambodia were officially established in 1967. Over the past 45 years, there have been many milestones but in general, they have been increasingly tightened and consolidated in many aspects. With these premises, Vietnam-Cambodia trade relations have continuously increased, especially in the past 5 years, specifically in 2006, the two-way trade value between Vietnam and Cambodia was only 950 million USD, then in 2008 it was 1.7 billion USD and in 2011 it was 2.8 billion USD. These are very encouraging results in the context of economic development of the two countries. However, with favorable conditions for the development of bilateral trade relations, the above results can be considered not really commensurate with the potential and advantages of the two countries. Why is it that the trade relations between Vietnam and Cambodia have many potentials and advantages for development, but the results achieved are not really commensurate? Developing Vietnam-Cambodia trade relations has not only economic significance but also profound political significance, especially in the current new international context. In the coming time, we need to have


Vietnam - Cambodia trade relations after Vietnam joined the World Trade Organization (WTO) - 2

What are the solutions to promote Vietnam - Cambodia trade relations? Therefore, analyzing and evaluating the current status of Vietnam - Cambodia trade relations to find solutions to promote trade relations between the two countries is extremely necessary in both theory and practice. Researching the topic: "Vietnam - Cambodia trade relations after Vietnam joined the WTO" as a graduation thesis not only has economic significance but also contributes to enhancing the diplomatic relations between the two countries, building a lasting friendship between the two neighboring countries.

2. Research situation:

With the geographical proximity of the two countries and many cultural similarities, two-way trade between Vietnam and Cambodia has been established quite early. However, it is only in recent years that trade relations between the two countries have really flourished. Therefore, the study of Vietnam-Cambodia trade relations and related issues has been presented in a number of articles, conference papers, research works, etc.

There have been many articles, seminars and forums addressing the Vietnam-Cambodia trade relations in recent times. The Vietnam-Cambodia trade conference has been held many times in Vietnam (Long An, An Giang) and Cambodia, the forum "Enhancing the integration capacity of Vietnamese enterprises in Cambodia" was held on September 25, 2009 in Ho Chi Minh City. Issues regarding the current state of trade relations between the two countries and solutions to promote two-way trade growth have been discussed quite thoroughly.

Among the research articles on Vietnam - Cambodia trade relations, some outstanding articles can be mentioned such as: Vietnam - Cambodia trade relations by Associate Professor, Dr. Nguyen Xuan Thien and Associate Professor, Dr. Tran Van Tung published in the Journal of World Economic and Political Issues in 2009; Import and export of goods between Vietnam and Cambodia, current situation and solutions


The article "The Law of Vietnam and Cambodia" by Tu Thanh Thuy published in the World Economic Issues Magazine No. 9; "Economic Cooperation between Vietnam and Cambodia in recent years", "Development Prospects" by Le Minh Dien published in the specialized magazine "Planning and Investment" No. 7, 2009... In general, the articles focused on analyzing and evaluating the trade situation between Vietnam and Cambodia to have an overview of the two countries' trade in recent times and prospects in the future.

Besides, there are also some books that mention some issues related to this topic, such as: Nguyen Tran Que (2007): Cooperation in developing the Greater Mekong Subregion now and in the future, Social Sciences Publishing House; Pham Duc Thanh (editor-in-chief, 2007): ASEAN integration in the first decades of the 21st century, Southeast Asia Research Institute; Nguyen Hong Son (editor-in-chief): ASEAN Economic Community (AEC): Content and roadmap, Social Sciences Publishing House, 2009; Nguyen Duy Dung (editor-in-chief, 2012): Vietnam-Laos-Cambodia Friendship and Development Cooperation, Information and Communication Publishing House.

The published articles, conference papers, forums, books, etc. generally do not really evaluate the topic in a comprehensive, in-depth, and detailed way. However, this is also one of the extremely important sources of information and reference materials for the implementation of this thesis.

3. Research purpose and tasks

3.1 Research purpose:

- Analyze and evaluate the current status of Vietnam-Cambodia trade relations, thereby finding out the strengths and weaknesses that the two countries can complement each other in the development process.


- Research and propose a number of solutions to promote Vietnam-Cambodia trade relations, contributing to strengthening the friendly relations between the two countries.

3.2 Research tasks:

- Theoretical and practical basis of Vietnam-Cambodia trade relations

- Analyze the current status of Vietnam-Cambodia trade relations, evaluate the successes and limitations of this trade relationship.

- Leaking scientific basis to propose some solutions to develop Vietnam-Cambodia trade relations to a new height.

4. Research objects and scope:

4.1 Research object: Vietnam-Cambodia trade relations

4.2 Scope of research:

- Spatial scope: Commercial activities of Vietnam and Cambodia

- Time scope: The thesis studies Vietnam-Cambodia trade relations since Vietnam joined the WTO until now, mainly focusing on the period 2007-2011.

5. Research method:

The thesis uses dialectical materialism method to analyze the formation and development of international trade. The method of analysis, synthesis and comparison is also used to reveal the content of the thesis.

6. New contributions of the thesis.

- The thesis systematizes a number of theoretical issues on international trade and regional economic linkages to serve the study of Vietnam-Cambodia trade relations.


- Assess the current status of Vietnam-Cambodia trade relations, point out achievements, limitations and causes in the development process of trade relations between the two countries.

- Based on the assessment of the current status of Vietnam-Cambodia trade relations, propose a number of solutions to promote trade relations between the two countries.

7. Structure of the thesis

In addition to the introduction, conclusion, list of references and appendix, the content of the thesis is structured into three chapters.

Chapter 1: Theoretical and practical basis of Vietnam-Cambodia trade relations

Chapter 2: Current status of Vietnam-Cambodia trade relations

Chapter 3: Prospects and solutions to promote the development of Vietnam-Cambodia trade relations


CHAPTER 1


THEORETICAL AND PRACTICAL BASIS OF VIETNAM-CAMBODIA TRADE RELATIONS


1.1. Theoretical basis of Vietnam-Cambodia trade relations

1.1.1 International trade and some basic theories of international trade

1.1.1.1 Concept and characteristics of international trade

In the context of globalization today, international trade is an indispensable factor in the development of economies. International trade has been incubated and developed since ancient times with clear imprints through the Silk Road, the Amber Road, etc. However, it was not until recent centuries that international trade really played its role, making an extremely important contribution to the prosperity of the world.

Trade in its most basic sense is the exchange of goods and services between parties. International trade is formed when the exchange of goods and services is carried out across national borders. Thus, basically, international trade is the exchange of goods and services between countries. In the modern world, international trade is associated with the use of different payment currencies, so exchange rates and international payments are closely related issues. In addition, tariffs and other trade barriers also have a significant impact on international trade. Depending on the conditions and economic situation of each country, each country will have appropriate international trade policies, contributing to promoting economic growth. The more countries participate deeply in world economic integration, the more conditions international trade has to develop strongly.

Nowadays, the forms of international trade include import and export of goods and services, outsourcing and outsourcing of services.


processing, re-export and transit, on-site export. In general, the import and export of goods and services plays a leading role in the international trade of each country. Outsourcing for foreign countries has the limitation of short cycles but is suitable for developing countries with the advantage of abundant and cheap labor. Meanwhile, transit activities do not involve buying and selling but only arising and accompanying services such as transit transportation, preservation, warehousing, etc. For exporters who do not have advantages in transportation and warehousing systems, on-site export is an optimal choice to quickly recover capital while still earning foreign currency. However, depending on the advantages and stages of each country, other forms of international trade will be applied, also contributing significantly to the economic development of the countries. [10, pp. 12-34]

1.1.1.2 Causes of international trade

International trade is basically the buying and selling, exchanging goods and services between countries. In theory, countries participating in international trade all gain certain benefits. So what are the basic causes and purposes of the formation of international trade?

Firstly, international trade activities were born with the basic purpose of trading to make a difference in price or also known as making a profit. This is an objectively necessary activity in the economy in general with the distribution of goods and services from places with low prices to places with higher prices. Even though the world today is tending to be "flat", the economies of countries are deeply integrated, the difference in prices of goods between countries still has the opportunity to exist, therefore, international trade always develops to meet the objective laws of the world.

Second, consumer preferences and tastes will affect the formation of international trade. Because consumer tastes in each country are fundamentally different, the demand for goods is also different. For example,


Japan is an “island nation” with a large sea area and many rivers, so there will be many types of seafood. However, a part of the Japanese people really like Vietnamese catfish. Therefore, a network specializing in supplying tra fish, basa fish, etc. from Vietnam will be formed to satisfy the consumption needs of the Japanese people. Thus, the Japanese people’s preference for catfish has decided the formation and development of the distribution channel of catfish between Vietnam and Japan. As people’s living standards increase, the preferences and tastes of consumers will play an important role in how manufacturers decide what to produce and where to distribute it.

Third, the difference in resources and the level of resource use is also the cause of the formation of international trade. Most countries in the world do not have enough resources and other resources to produce all types of goods. If a country can produce all types of goods, the cost will certainly be very high and inefficient. Therefore, countries must exchange goods with each other through international trade. Thus, international trade activities are based on the division of labor between countries, allowing each country to maximize its advantages and the world's productive forces will be exploited more effectively.

In short, international trade is an inevitable objective law due to the difference in prices of goods, due to the international division of labor with the purpose of maximizing and effectively promoting the resources of each country as well as meeting the needs, preferences and tastes of consumers of each country. Basically, all countries when participating in international trade achieve certain benefits.

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