Cambodia’s export sector has demonstrated resilience, with a slight increase of 1.2 percent in exports during the first 11 months of 2023. According to a report released by the General Department of Customs and Excise, the country exported goods worth $20.5 billion, compared to $20.24 billion during the same period last year.
The report also highlighted the significant rise in Cambodia’s exports to China, with a growth rate of over 18 percent. In January-November, Cambodia exported goods worth 1.3 billion dollars to China, up from $1.1 billion in the previous year. China remains the third-largest export destination for Cambodia, following the United States and Vietnam.
The main contributors to Cambodia’s export growth were garments, footwear, and travel goods. These products have been in high demand globally, particularly during the holiday season. Additionally, Cambodia’s agricultural sector performed well, with exports of rice, rubber, cassava, bananas, mangoes, and longans contributing to the overall increase in exports.
Speaking about the significant rise in exports to China, Penn Sovicheat, Secretary of State and Spokesperson for the Cambodian Ministry of Commerce, attributed this growth to the implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement and the Cambodia-China Free Trade Agreement (CCFTA). Both agreements came into force last year and have provided preferential tariffs for Cambodian products exported to China.
“Thanks to the RCEP and CCFTA, our made-in-Cambodia products have gained a competitive edge in the Chinese market. These agreements have played a vital role in promoting long-term and sustainable export growth for Cambodia,” said Sovicheat.
The RCEP agreement, considered the world’s largest trade bloc, encompasses 15 Asia-Pacific nations, including Cambodia and China. It aims to reduce tariffs and promote smoother trade relations among member countries. The CCFTA focuses specifically on enhancing trade between Cambodia and China, providing a further boost to export opportunities for Cambodian businesses.
Cambodia’s export sector has faced various challenges amidst the ongoing global economic uncertainties. However, the country’s ability to adapt and leverage regional trade agreements has helped maintain its export growth. The diversification of export products, particularly in the garment and agricultural sectors, has also played a crucial role in mitigating the impact of global economic fluctuations.
Looking ahead, experts expect Cambodia’s export sector to continue its positive trajectory. The government’s focus on improving trade infrastructure and enhancing the ease of doing business in the country has created an enabling environment for businesses to thrive. Furthermore, the recent signing of the Cambodian-Australian Free Trade Agreement (CAFTA) and ongoing negotiations for the Cambodia-European Union Free Trade Agreement (CEUFTA) are expected to open up new avenues for export growth.
It is worth noting that Cambodia’s export success is not solely reliant on regional trade agreements. The country has made significant progress in improving the quality and standards of its products, attracting international buyers who value ethical sourcing and sustainable practices. This has further strengthened Cambodia’s position in the global export market.
In conclusion, Cambodia’s export sector has shown resilience and growth despite challenges posed by the global economic environment. The rise in exports to China, driven by favorable trade agreements, underscores the importance of regional partnerships in expanding market access for Cambodian products. As the country continues to diversify its export base and enhance trade infrastructure, Cambodia is poised to build on its export success in the coming years.
“Thanks to the RCEP and CCFTA, our made-in-Cambodia products have gained a competitive edge in the Chinese market. These agreements have played a vital role in promoting long-term and sustainable export growth for Cambodia.” – Penn Sovicheat, Secretary of State and Spokesperson for the Cambodian Ministry of Commerce.
Source:The Khmer Times
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
