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Optimizing Logistics in Cambodia with VICO’s Vietnam-Cambodia Cross-Border Service
By Indochina Logistics Expert
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1. Potential for Vietnam-Cambodia Logistics Development 

Vietnam and Cambodia have a thriving cross-border trade relationship, with road transport playing a critical role in keeping supply chains efficient and costs manageable. As the economies of these neighboring countries grow, their trade is increasing: in 2023 alone, the bilateral trade volume between Vietnam and Cambodia exceeded $10 billion, with Cambodia importing a large percentage of essential goods from Vietnam, including textiles, electronics, machinery, and agricultural products. Effective logistics solutions are needed to support this demand and ensure that goods move smoothly across borders without costly delays. 

Vietnam is a major and important trading partner, helping Cambodian goods easily access key seaports and facilitate exports to other countries worldwide. Meanwhile, Cambodia is located in a "golden" position in the Greater Mekong Subregion, serving as a convergence point on the East-West Economic Corridor, connecting Vietnam with other countries in the region.  

A forklift is loading cargo Logistics in Cambodia
A forklift is loading cargo Logistics in Cambodia 

The untapped potential and development of Vietnam-Cambodia logistics are enormous, with the ability to strengthen connectivity to create a more efficient and seamless logistics system, while benefiting businesses and economies on both sides of the border. 

Cambodia's Import and Export Hubs 

  • Major Import Source: China supplies around 50% of Cambodia's imports. 

  • Primary Export Destinations: The US and Europe are the main destinations for over 70% of Cambodia's exports. 

Transshipment Hubs:  

  • Cat Lai and Cai Mep-Thi Vai ports in Vietnam are crucial transshipment hubs for Cambodian goods. 

  • These ports handle approximately 70% of Cambodia's export volume. 

    >> Exporting Goods to Cambodia by Road: An Opportunity for Export Market Expansion

VICO’s cross-border trucking services from China – Vietnam – Cambodia offer a reliable and cost-effective way to address the growing need for efficient logistics in Cambodia. Here’s a look at how our solutions help businesses streamline their supply chains and maintain timely deliveries in the Cambodia-Vietnam trade corridor. 

VICO Trucks are ready to ship your shipment from Vietnam to Cambodia
VICO Trucks are ready to ship your shipment from Vietnam to Cambodia


Why Cross-Border Trucking is Crucial for Logistics in Cambodia 

Cross-border trucking facilitates the transportation of goods by road between neighboring countries. It’s a flexible, cost-efficient logistics solution that works well for a variety of goods, from raw materials to finished products. For example, in 2023, over 60% of Cambodia's imports from Vietnam arrived by truck, showcasing the importance of this mode of transport in meeting market demands. 

This logistics method provides numerous benefits for companies engaged in Cambodia's trade, including: 

  • Reduced Transit Time: Trucking is often faster than other modes for short distances, with goods typically reaching their destination in 2-5 days. This is significantly quicker than sea freight, which can take weeks, and avoids the high costs of air transport. 

  • Lower Costs: Cross-border trucking helps businesses save money by avoiding expensive port fees and reducing per-unit shipping costs for regional deliveries. 

  • Flexibility: Trucks can go directly from supplier to buyer locations, minimizing handling costs and providing a smoother transition across borders. 

Challenges in Cross-Border Trucking and How VICO Solves Them 

Cross-border trucking comes with its own set of challenges, including customs clearance, varying regulations, and the need for precise coordination. With an estimated 85% of delays in cross-border logistics caused by customs and regulatory issues, having a reliable logistics partner like VICO can make a significant difference. 

Transporting goods between Vietnam and Cambodia is fraught with challenges, primarily due to the intricate customs procedures. The discrepancies in regulations and product standards between the two nations often result in prolonged customs clearance processes, incurring additional costs and delays in delivery. 

VICO’s expertise in customs clearance and regulatory compliance helps businesses avoid delays. Our team works closely with both Vietnamese and Cambodian customs authorities to ensure all documentation is in order, expediting the clearance process and minimizing the risk of border hold-ups. 


2. What is CDC Cambodia, and why do goods exported to Cambodia need a CDC? 

CDC stands for Certificate of Duty Exemption of Cargo, an essential document for businesses exporting goods to Cambodia, particularly for products listed in the duty-free import category. 

Why is the CDC (Certificate of Duty Exemption of Cargo) Necessary? 

  • Duty and VAT Exemption: The CDC allows businesses to import goods into Cambodia without paying import duties and Value Added Tax (VAT). This significantly reduces import costs and increases product competitiveness in the Cambodian market. 

  • Investment Promotion: The Cambodian government issues duty exemptions to attract investment and develop key industries. 

  • Simplified Customs Procedures: Having a CDC streamlines customs processes, reducing clearance time for goods. 

Important Points for Shipping Goods with a CDC to Cambodia 

  • Duty-Free Goods List: This list is regularly updated, so businesses need to check the latest information before exporting. 

  • CDC Application Process: To obtain a CDC, companies must prepare the necessary documentation as per Cambodian government regulations. This process can be complex, often requiring assistance from customs service providers. 

  • Validity Period of the CDC: The CDC has a specific validity period, so businesses must plan shipments accordingly to avoid expiration. 

  • Other Regulations: In addition to the CDC, exports to Cambodia must comply with other regulations on product quality, food safety, and environmental protection. 

Risks of Shipping Without a CDC 

  • Detainment by Cambodian Customs: If goods lack a valid CDC, Cambodian customs may detain them and request additional documentation. 

  • Import Duty and VAT Obligations: Businesses will be required to pay full import duties and VAT on shipments, increasing costs. 

  • Reputation Risks: Non-compliance with customs regulations can damage a business's reputation and make future exports more challenging. 

>>Vietnam and Cambodia: Fueling Asia's Supply Chain Growth

3. Types of goods transported 

Most types of goods can be transported by road to Cambodia, except for a few items prohibited or restricted by the regulations of both countries. Some commonly transported goods include: 

  • Consumer goods: Household appliances, electronics, food, beverages, textile and apparel, coffee,… 

  • Raw materials: Raw materials for production, components, spare parts, etc. 

  • Industrial goods: Machinery, equipment, construction materials, etc. 

Why VICO’s Cross-Border Trucking is Cost-Effective and Reliable 

  • Cost Savings: By consolidating shipments from multiple suppliers, VICO reduces costs by 20-30% compared to individual shipments, enabling businesses to optimize expenses for regular trade. 

  • Improved Delivery Times: VICO’s direct trucking routes can reduce transit time by up to 30%, ensuring goods arrive on time and businesses can meet their customers’ expectations. 

  • Reduced Environmental Impact: VICO’s consolidation approach results in fewer trips, cutting down on carbon emissions by an estimated 15% compared to traditional logistics methods. 

VICO’s Buyer Consolidation Service for Logistics in Cambodia 

A key part of VICO’s service offering is Buyer Consolidation. This allows businesses that regularly import goods from Vietnam to Cambodia to combine multiple shipments from different suppliers into a single, larger shipment. Here’s how it benefits logistics in Cambodia: 

1. Streamlined Process: By consolidating shipments, VICO simplifies coordination and minimizes the risk of delays or errors. Businesses receive all their goods in one streamlined delivery, saving time and reducing administrative workload. 

2. Cost Reduction: Consolidation allows businesses to share the costs of transportation, which can reduce shipping expenses by up to 25%. 

3. Enhanced Inventory Management: Consolidation helps businesses manage inventory more effectively by ensuring a single, reliable delivery for goods from multiple suppliers. 

VICO’s Customized Cross-Border Trucking Options 

To meet the diverse logistics needs in Cambodia, VICO offers several flexible cross-border trucking solutions: 

1. Direct Trucking: For high-priority goods, VICO provides direct trucking, which offers fast and reliable delivery within 2-3 days, depending on the location. This is ideal for businesses that need rapid, door-to-door delivery without interruptions. 

2. Consolidated Shipments: This solution is ideal for companies with regular but smaller shipments. VICO’s buyer consolidation allows them to share transportation costs and enjoy lower rates without sacrificing service quality. 

3. Multimodal Solutions: For goods that benefit from cost and speed balancing, VICO combines trucking with rail or sea transport to ensure efficient delivery without compromising budget constraints. 

4. Additional Services: Warehousing and Inventory Management 

VICO’s logistics offerings extend beyond transportation. We provide warehousing solutions to help companies manage inventory during transit: 

  • Bonded Warehouses: Secure storage facilities that allow goods to be stored while awaiting customs clearance, providing flexibility in stock management. 

  • Transit Warehouses: Short-term storage options at strategic locations for rapid distribution upon arrival in Cambodia, reducing lead times. 

Warehousing system Logistics in Cambodia
Warehousing system Logistics in Cambodia

VICO Logistics consolidation warehouse for Vietnam Cambodia Logistics: 

  • Located next to the Hanoi highway and Saigon River, the main road linking Binh Duong, Dong Nai and Ba Ria-Vung Tau. 

  • An inland container port with convenient waterway and road transportation, helping businesses reduce the time it takes to transport goods to the border. 

  • Address: Truong Tho Ward, Thu Duc City, Ho Chi Minh City, Vietnam 

  • Established in 1983 

With its convenient location and professional services, VICO Logistics' LTL warehouse is an ideal choice for businesses wanting to transport goods to Cambodia. 

5. Why Choose VICO for Your Cambodia Logistics Needs 

VICO’s comprehensive cross-border trucking and consolidation services are tailored to the needs of businesses operating in Cambodia’s fast-growing market. Our experience and infrastructure enable us to support companies with complex logistics requirements, offering them a reliable, cost-effective, and flexible solution. 

With VICO, businesses gain: 

  • Cost Savings of 20-30% through buyer consolidation and optimized trucking routes. 

  • Improved Transit Times, ensuring deliveries are faster by up to 30% compared to traditional methods. 

  • Enhanced Sustainability, reducing carbon footprint by up to 15% with consolidated shipments. 

Get Started with VICO’s Cross-Border Trucking Services Today 

For companies seeking reliable logistics in Cambodia, VICO’s Vietnam-Cambodia cross-border trucking solutions provide the expertise and efficiency needed for successful supply chains. Contact VICO today to discover how we can enhance your logistics operations, reduce costs, and improve delivery times across the Vietnam-Cambodia border. 

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