Cambodia’s export sector has showcased resilience and growth, reaching an impressive milestone of over $20.49 billion in the January-November period this year, marking a commendable 1.2 percent increase compared to the same period last year, as per a report from the General Department of Customs and Excise.
Highlighting the nation’s global reach, the United States retained its position as Cambodia’s largest market, with exports amounting to $8.14 billion. Despite a slight dip of 0.9 percent from the previous year, this underscores the enduring strength of Cambodia’s trade ties with the U.S.
Vietnam emerged as a key partner, witnessing a remarkable 37.8 percent surge in exports, reaching $2.61 billion. Meanwhile, exports to China experienced an 18.5 percent increase, totaling $1.31 billion, emphasizing the expanding trade relationships within the region.
The backbone of Cambodia’s export success lies in its diverse range of offerings, including apparel, footwear, travel goods, bicycles, and agricultural products such as rice, rubber, cassava, bananas, and mangoes.
The garment, footwear, and travel goods industry, employing around 840,000 workers, predominantly female, plays a pivotal role as Cambodia’s largest foreign exchange earner. In a significant development, the Regional Comprehensive Economic Partnership (RCEP) agreement, along with free trade agreements with China and Korea, both in effect since 2022, have played crucial roles in promoting Cambodia-made products and attracting new foreign investment, according to Penn Sovicheat, spokesperson at the Ministry of Commerce.
Sovicheat highlighted the positive impact of these trade pacts on export growth and foreign investment, attributing them to Cambodia’s thriving economic landscape.
Prime Minister Hun Manet has also emphasized collaboration between the government and the private sector to further boost the export of made-in-Cambodia products. His strategic vision involves setting ambitious goals through joint efforts to enhance the international presence of Cambodian goods.
In terms of imports, Cambodia’s total imports experienced a manageable decline of 5.4 percent, amounting to $22 billion. Notably, the Kingdom’s bilateral trade with China stands out, reaching $11.07 billion, representing 26 percent of the country’s total international trade at $42 billion. This robust trade relationship primarily involves the import of raw and construction materials, automobiles, pharmaceuticals, electronic equipment, fertilizers, and pesticides.
Cambodia has achieved remarkable success in expanding its exports and boosting its economic growth in the past two decades. The country has a bright future ahead, as it continues to leverage its comparative advantages in export-oriented manufacturing industries, as well as to diversify its economy into new and emerging sectors.
However, the country also faces some risks and challenges, such as the uncertainty of the global economic recovery, the volatility of international commodity prices, the impact of climate change, and the need for structural reforms and human capital development. Therefore, Cambodia needs to adopt sound macroeconomic policies, enhance its trade facilitation and logistics, improve its business environment and governance, and invest more in education, health, and social protection, to ensure that its export-led growth is inclusive, sustainable, and resilient.
