Ho Chi Minh City Strengthens Cambodia Trade Links via Major Transport Projects

Ho Chi Minh City (HCMC) is ramping up infrastructure development to boost its connectivity with Cambodia, signaling a strategic shift toward deeper regional integration and supply chain growth. At the heart of this effort is Tay Ninh, a key border province that hosts the country’s busiest land crossing and acts as a crucial link between southern Vietnam and mainland Southeast Asia.

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By focusing on new roads, expressways, and rail projects along the HCMC–Tay Ninh corridor, officials aim to enhance cross-border logistics, reduce transit delays, and support expanding bilateral trade with Cambodia.

The initiative also supports broader efforts to position southern Vietnam as a vital hub within the Trans-Asian economic corridor, connecting regional production networks with markets across Cambodia, Thailand, and beyond.

New road corridors to strengthen western connectivity

Ho Chi Minh City is set to launch three major road infrastructure projects in 2026, with a total planned investment of VND40.6 trillion (US$1.55 billion), aimed at strengthening westward connectivity and supporting regional integration.

The projects, scheduled to start in the third quarter of 2026 and finish by late 2027, aim to create new transport corridors connecting Ho Chi Minh City with Tay Ninh. This follows the province’s territorial expansion after merging with Long An in July 2025.

The upgraded routes are anticipated to enhance cross-border logistics and support trade flows between southern Vietnam and nearby markets.

Vo Van Kiet extension to enhance East–West connectivity

The largest project involves extending Vo Van Kiet Boulevard by 12.1 kilometers toward the Tay Ninh border. As one of the city’s primary east–west arteries, the road will retain its 60-meter width and connect directly to Provincial Road 823D, creating a more seamless link to cross-border trade routes.

New arterial road to ease congestion and support industrial zones

A second project will develop a 10-kilometer arterial route connecting National Highway 1, via Ring Road 2, to Tay Ninh’s transport network. The route will pass through key industrial areas such as Vinh Loc and is expected to reduce congestion while improving connectivity between HCMC’s ring road system and its northwestern growth corridor.

National Highway 50B to strengthen regional distribution

The third project, National Highway 50B, will add a 5.8-kilometer corridor linking southern Ho Chi Minh City with the Mekong Delta and Tay Ninh. This route is expected to help redistribute traffic and reduce reliance on existing national highways, enhancing overall transport efficiency.

Expanding a broader regional infrastructure network

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These three roads form part of a larger pipeline of nine priority infrastructure projects planned for 2026-2030 to strengthen connectivity between HCMC and Tay Ninh.

Key developments include the HCMC–Moc Bai Expressway, a 50-km, four-lane route expected to break ground in early 2026 under a build-operate-transfer (BOT) model and be completed by 2027. Once operational, the expressway will significantly reduce congestion on National Highway 22 and shorten travel time to the Moc Bai International Border Gate.

In parallel, the proposed Bau Bang–Moc Bai railway, spanning approximately 57 km, will connect logistics hubs in southern Vietnam to the border economic zone. The railway is expected to support both cargo and passenger transport, link to national rail lines, and facilitate multimodal logistics development.

Additional upgrades to provincial roads, ring roads, and industrial connectors further highlight HCMC’s emphasis on integrated regional planning and cross-provincial coordination.

Moc Bai: From border crossing to regional logistics hub

At the center of this strategy is the Moc Bai International Border Gate, which is emerging as a critical logistics node in Vietnam’s southern economic corridor.

Currently, transit goods account for an estimated 75–80 percent of total cargo volume passing through Moc Bai, underscoring its growing role as a regional transshipment hub. Export flows from Vietnam primarily include fibers and manufacturing inputs for Cambodia, while imports consist largely of textiles, raw materials, and transit goods destined for markets such as China, Europe, and Japan.

The Moc Bai Border Economic Zone, covering over 21,000 hectares, is being developed into the largest international border gate complex in southern Vietnam. With improved infrastructure and logistics facilities, including warehousing, customs yards, and border trade centers, the area is positioned to become a key link in the Vietnam–Cambodia–Thailand trade corridor.

However, unlocking its full potential will require further policy support, particularly through tax incentives, land-use benefits, and targeted mechanisms to attract investment in logistics, cold storage, and value-added processing industries.

Trade growth reinforces strategic importance

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The infrastructure push comes amid strong growth in Vietnam–Cambodia trade relations, which remain a key pillar of bilateral cooperation.

In 2025, total two-way trade reached US$11.3 billion, up 12 percent year-on-year. Vietnam exported US$5.67 billion worth of goods to Cambodia, while imports totaled US$5.66 billion, an 18.4 percent increase.

Trade between the two countries is highly complementary. Cambodia supplies Vietnam with agricultural raw materials such as cashew nuts, rubber, cassava, wood, and fresh produce. In return, Vietnam exports manufactured and industrial goods, including textiles, steel, machinery, chemicals, and consumer products.

To further facilitate trade, both countries signed a bilateral agreement in April 2025 providing preferential tariffs beyond ASEAN Trade in Goods Agreement (ATIGA) commitments. The agreement aims to accelerate progress toward a US$20 billion bilateral trade target.

Strategic implications for the Trans-Asian corridor

HCMC’s infrastructure expansion toward Tay Ninh carries implications beyond bilateral trade, reinforcing Vietnam’s role in the broader Trans-Asian transport network.

Tay Ninh’s strategic location, bordering Cambodia and serving as a gateway between HCMC and the Mekong Delta, positions it as a critical junction in regional supply chains. With nearly 370 km of shared border and expanded provincial scale following the merger, the province offers significant potential for cross-border logistics and industrial development.

As connectivity improves, the HCMC–Moc Bai axis could evolve into a major economic corridor linking Vietnam to Cambodia, Thailand, and deeper into mainland Southeast Asia. This would enhance supply chain diversification, reduce logistics costs, and strengthen Vietnam’s competitiveness as a regional manufacturing and trade hub.

For international investors, Vietnam's different localities offer favorable conditions across almost every sector, particularly as the country shifts toward higher value-chain manufacturing, high-tech industries, and innovation. Taking a closer look at Vietnam's provinces and investment destinations before committing capital can provide a decisive competitive advantage. A tailored market study, dedicated location selection, or business matchmaking can uncover factors that are often hard to assess—such as special incentives, skilled labor availability, and tax breaks.

Huyen Do

Manager, Business Intelligence Vietnam

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