Signing agreement on double taxation avoidance between Vietnam and Cambodia

In 2017, the total trade turnover of Vietnam and Cambodia reached $US 3.8 billion, increased by 30% compared to the year of 2016. Photo: TCT

On the occasion of the 6th Greater Mekong Sub-region Summit (GMS) and the 10th Cambodia-Laos-Vietnam Development Triangle Area Summit, the Ministry of Finance Vietnam, and the Ministry of Economy and Finance of Cambodia, have officially signed the Agreement on double taxation avoidance to prevent the evasion of taxes on income taxes between the two governments.

In recent years, the friendly cooperative relations between Vietnam and Cambodia have developed comprehensively, economic cooperation between the two countries has been growing more and more powerful. Vietnam is Cambodia's third largest trading partner among more than 140 countries and territories that have trade relations with the country.

In 2017, the total trade turnover of Vietnam-Cambodia reached $US 3.8 billion, increased by 30% compared to 2016. In that, Vietnam's export turnover to Cambodia reached $US 2.8 billion, an increase of 26.2 %; Vietnam's import turnover from Cambodia is about $US 1 billion, increased by nearly 41% compared to 2016. Both sides are striving to increase bilateral turnover to $US 5 billion in the future.

Up to now, Vietnam has 190 investment projects in Cambodia, with a total registered investment of $US 2.89 billion, mainly in agriculture and forestry. Up to 20^th March, 2018, Cambodia has 19 projects with a total investment capital of $US 64.9 million, ranked 56th in 126 countries and territories that have invested in Vietnam, and ranked 8th in the number of ASEAN countries investing in Vietnam.

With the economic trade and investment situation between the two countries, the signing of the Agreement on double taxation avoidance between Vietnam and Cambodia will contribute promoting trade and investment cooperation between them, creating a clear, stable tax environment for Vietnamese and Cambodian investors to develop and expand their business-investment activities. At the same time, indirectly enhancing the comprehensive cooperation in the fields between Vietnam and other Asian countries in general and ASEAN countries in particular.