PHNOM PENH – Bilateral trade between Cambodia and Canada has surged past the US$1 billion milestone in the first nine months of 2025, marking a significant 14% year-on-year increase.
The latest data from Cambodia’s General Department of Customs and Excise (GDCE) underscores a deepening economic partnership, fueled by Cambodia’s manufacturing strength and Canada’s strategic pivot toward the Indo-Pacific.
Export Engines and Import Growth
Cambodian exports continue to dominate the trade balance, accounting for the vast majority of the total value. This growth is anchored by a robust global demand for:
- Garments and Footwear: Remaining the cornerstone of Cambodian industry.
- Travel Goods: Including luggage and handbags.
- Bicycles: A sector where Cambodia has become a leading global supplier.
- Electronic Components: Reflecting the Kingdom’s successful move into value-added manufacturing.
Conversely, Canadian imports into Cambodia have also trended upward. Key contributors include high-tech machinery, automotive parts, and electronics, which are essential for Cambodia’s ongoing infrastructure and industrial development.
Strategic Re-alignment: The Indo-Pacific Strategy
The strengthening ties are no coincidence. In March 2025, Canada officially upgraded its diplomatic mission in Phnom Penh to a full Embassy, a move central to its broader Indo-Pacific Strategy.
“Cambodia is increasingly relevant within our regional engagement,” stated Canadian trade officials during a recent “Team Canada” trade mission. The strategy focuses on building stable and diversified supply chains, moving away from over-reliance on single-market sources.
For its part, Cambodia has been aggressive in its economic reforms. The government has prioritized:
- Regulatory Overhaul: Streamlining the process for foreign direct investment (FDI).
- Ease of Doing Business: Implementing digital platforms for trade facilitation.
- Special Economic Zones (SEZs): Providing tax incentives for Canadian firms looking to enter emerging sectors like renewable energy and food security.
Future Outlook: ACAFTA and Beyond
Industry observers are looking toward the ASEAN-Canada Free Trade Agreement (ACAFTA), which is expected to reach a substantial conclusion by 2026. This agreement is projected to provide a massive boost to bilateral volumes by eliminating remaining tariffs and harmonizing digital trade standards.
To support this momentum, both nations have established new representative offices and business promotion platforms. These initiatives are designed to help small and medium enterprises (SMEs) navigate market entry, ensuring that the benefits of this $1 billion partnership reach beyond major industrial players.
With the hosting of the Francophonie Summit in Phnom Penh scheduled for 2026, the cultural and linguistic ties between Cambodia and Canada (particularly Quebec) are expected to further catalyze commercial networking and investment.
Also read, Cambodia Garments, Shoes & Travel Goods Exports Hit US$15.5B in 2025
