Cambodia has had a notable surge in the exportation of electrical machinery, equipment, and associated goods, representing a significant development. Based on the data published by the General Department of Customs and Excise (GDCE), the total value of exports has surpassed a noteworthy sum of $2.1 billion during the initial eight-month period of 2023. This accomplishment signifies a remarkable increase of approximately 100 percent as compared to the corresponding period in the previous year.
The standout data from GDCE indicates that exports falling under Chapter HS 2 Code 85 surged to $2.162 billion, marking a substantial 98.5 percent increase from the $1.089 billion recorded year-on-year. What is even more noteworthy is that these exports now constitute a significant 13.8 percent of the Kingdom’s total exports, which have surpassed $15.692 billion during the corresponding period.
The growth in Cambodia’s electrical machinery exports can be attributed to several key factors. First and foremost, there has been a substantial expansion of domestic production capacity in the country. This, coupled with a surge in international demand, has propelled Cambodia into the global arena as a notable source of semi-finished products. The nation’s production chain has evolved, increasingly relying on advanced technology and a robust industrial framework.
This export surge not only contributes to Cambodia’s national income but also positions the country as a prominent global manufacturing hub. The presence of numerous factories producing electrical machinery and related goods is bound to attract more manufacturers looking to establish or assemble large machinery within Cambodia’s borders.
Furthermore, Cambodia benefits from advantageous political and trade ties, reinforced by bilateral and multilateral free trade agreements (FTAs). These agreements facilitate smoother international trade, enhancing the country’s competitiveness in the global market.
One cannot ignore the strategic geographical location of Cambodia, which plays a pivotal role in its export success. Coupled with favorable investment laws, reasonable energy and labor costs, and an efficient transport system, Cambodia has consistently attracted both domestic and international investors. The nation’s efficient transport sector, in particular, has played a vital role in facilitating the export boom.
It is worth noting that this surge in electrical machinery exports comes at a crucial time, helping to counterbalance the decline in Cambodia’s textile industry since mid-2022. With an increasingly efficient transport sector and the ongoing influx of factories investing in the country, Cambodia’s exports are poised for further expansion in the future.
In retrospect, GDCE’s data from 2022 revealed that Cambodia collected $1.998 billion from Code 85 exports, marking an 84.8 percent increase from the $1.081 billion recorded in 2021. These figures constituted 8.9 percent of the country’s overall export value of $22.482 billion. The trajectory of Cambodia’s exports in the electrical machinery sector is indeed a testament to the nation’s progress and its ability to adapt to evolving global market demands.
With a government committed to fostering a conducive environment for business and a private sector that continues to invest in innovation and efficiency, Cambodia’s export trajectory is poised to soar even higher, especially as the global economy recovers to its pre-2019 state. Cambodia’s journey toward becoming a global manufacturing powerhouse is well underway, and the future looks promising for this Southeast Asian nation.
Source: The PhnomPenh Post