BUDAPEST: Commerce Minister Pan Sorasak urged a visiting delegation of Hungarian officials and businessmen to boost trade and investment cooperation between the two countries.
At the ministry on Wednesday, Mr. Sorasak met with senior political adviser to the Hungarian government Balint Tombor, representatives from the Hungarian embassy in Vietnam and Hungarian businesses to discuss how to increase economic ties.
Mr. Sorasak told the delegates that Cambodia’s manufacturing industry is in the process of developing the skill set of factory workers to support the requirements of light manufacturing and food processing. However, Mr. Sorasak stressed that Cambodia still needed a transfer of high-technology in the manufacturing sector.
“These are good areas that Hungary can explore, especially since Cambodia can provide competitive advantages such low cost of labor, duty free access to the European Union and favorable investment incentives as well as geographical advantage due to Cambodia’s location in the heart of Asean,” the minister was quoted in a press release.
“To foster economic and trade relations between the two countries, both countries should sign an economic cooperation agreement to strengthen business-to-business endeavors in the private sector,” said Mr. Sorasak. The minister also urged the signing of a memorandum of understanding between the chambers of commerce of both countries.
“The Ministry of Commerce is happy to facilitate as well as to organize a forum where businesses from both Hungary and Cambodia can meet to seek out opportunities for cooperation,” he added.
Mr. Tombor noted that Cambodia had been identified as an ideal partner in a number of areas that Hungary specializes in, including environmental protection, infrastructure and tourism development, food processing and agricultural machinery manufacturing.
“These are also some of the sectors that Hungary is interested in investing here. Hungary is ready to help in providing technical assistance and scholarships to Cambodian students to study in Hungary,” he added.
Earlier this year, Hungary opened a trade office in Phnom Penh during a visit by Foreign Affairs Minister Peter Szijiarto. During the opening ceremony he said that Hungary’s renewed presence in the Kingdom would boost bilateral trade from the present $1 million a year to at least $10 million by 2017.
A report from the Ministry of Commerce lists current bilateral trade at above Mr. Szijiarto’s estimates, with about $2.57 million in trade in the first 10 months of 2106. Cambodia exports rice, tobacco, garments and footwear to Hungary, and imports electronics, medical devices and mechanical spare parts.
Hungary’s main exports are machinery and transport equipment, consumer goods, agricultural products, chemicals, apparel, textiles, iron and steel, and wine. The European Union is by far its largest trading partner, accounting for about 79 percent of exports and 76 percent of imports.
Hungary joined the European Union in 2004, though it is not a member of the eurozone. Its currency is the Hungarian forint.
Russia is also an important trading partner, supplying most of Hungary’s natural gas and other energy needs.