Garment exports led the charge, increasing by 24% to US$9.79 billion, while footwear exports rose 23% to US$1.68 billion. Travel goods exports also saw robust growth, jumping 19.6% to US$1.95 billion.

This strong performance was attributed to rising global demand for Cambodian products, particularly in the apparel and textile sector.

Furthermore, Cambodia’s trade with other ASEAN member states expanded significantly, reaching US$15.69 billion, a 12.4% increase from the previous year.

Exports to ASEAN countries rose 7.6% to US$5.07 billion, while imports from ASEAN countries increased 14.8% to US$10.62 billion. ASEAN accounted for 28.3% of Cambodia’s total trade volume in 2024.

These positive developments highlight the strength of the Cambodian economy and its growing integration within the ASEAN region. The GFT sector continues to be a major driver of economic growth, providing employment opportunities for a significant portion of the workforce, particularly women.

The post Cambodia’s Economic Growth Fueled by Strong GFT Exports and Increased Trade with ASEAN in 2024 first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

• Cambodia’s exports to Vietnam grew by 32.1% in 2024.
• Imports from Vietnam increased by 14.5%.
• Total exports to international markets rose by 16%.

PHNOM PENH: Cambodia exported some US$2.9 billion worth of products to Vietnam in the first ten months of 2024, an increase of 32.1 percent compared to the same period last year, a report from the General Department of Customs and Excise of Cambodia revealed recently.

The main exported products included garments, fabric accessories, electrical machinery and appliances, agricultural products, and so on. These exports form the backbone of the economy, contributing significantly to revenue and employment. The garment industry, in particular, plays a crucial role, producing a variety of clothing items for leading international brands and driving economic growth through its extensive supply chains. Fabric accessories, which complement the garment sector, add value through specialized production techniques and skilled labor.

Electrical machinery and appliances represent another vital category, encompassing products such as consumer electronics, industrial equipment, and other technological goods that cater to the growing global demand. The strong export performance in this sector highlights the country’s developing manufacturing capabilities and its integration into international supply networks.

Agricultural products, including rice, rubber, and various fruits, are also important contributors to the export landscape. These products showcase the country’s rich agricultural heritage and the potential for sustainable growth in the agribusiness sector. With a focus on quality and competitive pricing, these exports continue to attract markets around the world.

Additional key exports might include footwear, textiles, and construction materials, each playing a strategic role in enhancing trade relations and economic diversification. By leveraging its strategic location, improving infrastructure, and fostering trade agreements, the country aims to boost its export portfolio and secure its position as a competitive player in the global market.

At the same time, the Kingdom imported US$3.4 billion worth of products from Vietnam, up 14.5 percent compared to the same period in the previous year, the report said, adding that mineral fuels, mineral oil and refined products, electrical machinery and appliances and their components, artificial short fibers, etc. were among the main Vietnamese products imported by Cambodia during the said period.

From January to October 2024, Cambodia’s total exports to international markets were valued at US$21.57 billion, up 16 percent, of which more than US$8.2 billion to the U.S. (up 9.8 percent), over US$1.4 billion to China (up 21.1 percent), more than US$1.1 billion to Japan (up 18 percent), and the rest to other markets.

In 2022, these exports amounted to about $3.67 billion, reflecting an annual growth rate of 26.3% over the past five years. The significant share of agricultural products highlights Cambodia’s role as a supplier of raw materials, particularly in the agricultural sector.

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H.E. Minister made the remarks while presiding over the closing ceremony of Cambodian Women Entrepreneurs Day 2024, organised here on Nov. 11 by the Cambodian Women Entrepreneurs Association (CWEA) under the theme “Women Empowerment in Green Economy”.

He noted women’s growing contribution to Cambodia’s business landscape, particularly in small and medium enterprises (SMEs). “Promoting women’s entrepreneurship requires combined efforts of all stakeholders to integrate their businesses into regional and global value chains, harness local resources, and adopt new technologies,” Minister Vanndy said.

Women entrepreneurs lead 69.2 percent of Cambodia’s economic units, according to the Ministry of Planning’s 2022 census. With Cambodia’s economy expected to grow around 6 percent in 2024—driven by sectors like garment exports, non-garment manufacturing, agriculture, tourism, and trade—H.E. Hem Vanndy stressed that women-led businesses are crucial to sustaining this momentum.

The Royal Government of Cambodia is actively implementing strategies and policies designed to support women entrepreneurs, with initiatives focused on enhancing productivity, expanding market access, and providing critical financial resources to help businesses to thrive, said the Ministry of Industry, Science, Technology & Innovation, adding that platforms such as ASEANAccess and KhmerSME offer essential business information in the region to small and medium enterprises (SMEs), equipping them with the tools and resources necessary for sustainable growth and success.

Addressing attendees at the event, the industry minister encouraged SMEs to formalize their businesses, emphasising that doing so would enhance their ability to access support, contribute to the government’s targeted policymaking, and strengthen their long-term business resilience and growth.

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The launch ceremony, held at the ministry early this week, was presided over by H.E. Mrs. Cham Nimul, Minister of Commerce, and attended by foreign ambassadors, representatives from relevant ministries and institutions, the private sector, and development partners.

A joint initiative of the Ministry of Commerce and the Centre for the Promotion of Imports from Developing Countries (CBI), the ESC aims to stimulate Cambodia’s exports, equip traders with export readiness, and instill confidence in their ability to compete internationally.

Through the ESC, exporters will gain access to training on export procedures and networking opportunities with experts and potential buyers in target markets, the ministry emphasized.

Cambodia’s export performance has been strong in the first three quarters of 2024, with goods valued at approximately US$19.8 billion, representing a 17 percent increase from the same period last year, according to the General Department of Customs and Excise of Cambodia.

The United States remains the largest market for Cambodian products, accounting for 38 percent of total exports with a value of US$7.6 billion. Vietnam follows as the second-largest market, with imports from Cambodia reaching US$2.7 billion, a 33.8 percent year-on-year increase. China is the third-largest market, with exports valued at US$1.27 billion, a 20 percent increase.

Cambodia’s primary export products include garments, machinery, electrical equipment, footwear, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys, and textiles.

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To answer this, let’s explore the key areas where Cambodia is showing rapid progress and development that hint at a similar path Singapore took.

1. Economic Growth and Development

According to the world bank, Cambodia’s economic landscape has undergone significant transformation over the past two decades. Between 1995 and 2019, the country achieved an average annual GDP growth rate of 7.6%, positioning it among the fastest-growing economies globally. This economic progress has been sustained by strategic investments in sectors such as real estate, tourism, manufacturing, and the growing digital economy.

Foreign direct investment (FDI) has been pivotal, with China as a primary contributor, investing significantly in infrastructure projects, real estate developments, and manufacturing since 2005. As of 2022, Cambodia’s FDI inflows were approximately $3.58 billion, a testament to the country’s growing appeal as an investment destination (Statista, 2022). Other countries, such as South Korea and Japan, have also made substantial contributions, particularly in real estate, agriculture, and finance. This flow of FDI has created job opportunities, expanded Cambodia’s middle class, and fueled demand for urban infrastructure in rapidly developing cities like Phnom Penh and Sihanoukville.

Additionally, Cambodia’s strategic location in Southeast Asia provides easy access to major sea lanes which provides easy access to essential trading routes, enhancing its appeal as a regional hub. In a way similar to Singapore, Cambodia is leveraging its geographical location to attract foreign investments and foster economic integration within ASEAN.

2. Real Estate Boom and Urbanization

Cambodia’s real estate sector is experiencing a period of rapid growth, particularly in its capital, Phnom Penh. High-rise buildings, luxury condominiums, and mixed-use developments are transforming the city’s skyline, indicating a thriving demand for both residential and commercial properties. Districts such as Toul Tum Poung and Boeung Keng Kang (BKK1) have emerged as vibrant hubs for new projects, drawing both local and international investors who recognize Phnom Penh’s potential as a rising urban center (CBRE Cambodia, 2023).

This growth is further supported by major infrastructure projects aimed at enhancing connectivity and accessibility. Notable developments include new road networks, the construction of the Techo Takhmao International Airport, and extensive expressway systems. The Techo Takhmao International Airport, scheduled to open in phases beginning next year, is expected to initially accommodate 13 million passengers, with a projected expansion to 50 million by 2050 (The Sun, 2024).

At the center of this real estate expansion is Realestate.com.kh, Cambodia’s leading online real estate platform. By providing a trusted, accessible marketplace, Realestate.com.kh connects developers, agents, and buyers, facilitating property transactions on a national scale. As the exclusive marketing partner for many major projects, Realestate.com.kh is instrumental in driving awareness and building demand for new developments across Cambodia. This role not only aids in promoting high-quality projects but also strengthens investor confidence by ensuring a streamlined and transparent buying process.

Realestate.com.kh’s Connect Center has also been a game-changer, creating a space where agents and developers receive support, professional training, and access to the best tools for reaching potential buyers. This initiative is enhancing service standards across the industry, helping Cambodia’s real estate sector grow more connected, professional, and investor-friendly.

For buyers and investors, this real estate boom represents a promising opportunity. As property values in Phnom Penh continue to appreciate, developments are emerging that combine luxury living with affordability, attracting both high-end investors and young professionals. New projects are being introduced with attractive starting prices, making the dream of urban living more accessible. From affordable condos to upscale residences, the real estate market in Cambodia is evolving to cater to a diverse range of buyers, much like the early years of Singapore’s property development boom.

With these factors in play, Cambodia’s real estate market is poised for sustained growth. Investors looking for high returns are increasingly drawn to the country’s affordable property prices, strategic location, and rapidly expanding urban infrastructure. Realestate.com.kh’s expertise and influence in the market will likely continue to drive this sector forward, solidifying Cambodia’s place as a future economic and urban powerhouse in Southeast Asia.

3. Tourism and Cultural Appeal

Tourism remains a significant driver of Cambodia’s economy. In 2023, Cambodia welcomed approximately 5.43 million international tourists, marking a notable increase of 139.5% from the previous year’s 2.27 million arrivals, highlighting the resilience and importance of the sector (Tourism Cambodia, 2023). While the iconic Angkor Wat continues to attract global attention, Cambodia is diversifying its tourism portfolio with new developments in eco-tourism resorts, cultural heritage sites, and luxury hospitality projects. For instance, eco-tourism initiatives saw a 250% increase in visitors, with 341,621 domestic and foreign tourists recorded in the first four months of 2022 compared to the same period in 2021 (B Consulting Cambodia, 2022).

Singapore’s success as a tourism destination was also built on a mix of cultural heritage, innovative attractions, and exceptional hospitality. Cambodia is following suit, broadening its tourism appeal and creating sustainable tourism experiences that highlight its cultural and natural assets.

4. Emphasis on Digital Transformation

The digital economy is a priority for Cambodia’s government as it works toward a more connected future. Initiatives to promote digital literacy, expand internet access, and encourage technology startups are gaining momentum. Programs like the Cambodia Digital Economy and Society Policy Framework 2021–2035 set ambitious targets for digital transformation, aiming to make Cambodia a leader in Southeast Asia’s digital landscape.

Singapore’s own transformation into a digital economy powerhouse was driven by government support for technology adoption, education, and infrastructure. Cambodia’s current path mirrors this with a focus on digital skills development, e-commerce growth, and tech innovation.

5. Special Economic Zones (SEZs) and Free Trade

Cambodia has established several SEZs, which offer tax incentives and infrastructure support to attract foreign companies. These zones are part of Cambodia’s strategy to create a competitive manufacturing base, particularly in garment manufacturing, electronics, and automotive parts. With the signing of free trade agreements with China and South Korea, Cambodia is positioning itself as a gateway for goods and services into ASEAN markets.

Singapore’s economic success was largely based on its ability to leverage trade agreements and offer business-friendly environments for foreign companies. Cambodia is pursuing a similar strategy, striving to create a more open and efficient economy that attracts global investment.

6. Commitment to Education and Skill Development

Singapore’s rise was fueled by investments in education and a focus on skills development. Cambodia is beginning to make strides in this area as well. The government, with the support of international partners, is investing in education reforms aimed at improving literacy, digital skills, and vocational training. New universities and technical institutes are emerging to meet the needs of a growing workforce that is increasingly connected and tech-savvy.

While Cambodia’s education system still faces challenges, these efforts show a commitment to building a skilled workforce. As more young Cambodians enter the job market with relevant skills, the country’s economy will benefit from a talent pool that supports its growing industries.

7. Future Outlook

In the years ahead, Cambodia has the potential to emerge as a competitive player in Southeast Asia’s economy. With the right mix of government policies, foreign investments, and local initiatives, Cambodia could indeed chart a path similar to Singapore’s. By embracing modernization while preserving its unique culture, Cambodia has the opportunity to create its own success story and become a dynamic, prosperous nation.

Conclusion: Cambodia’s Journey Toward a Bright Future

While Cambodia may not yet be “the new Singapore,” its transformation is certainly capturing the world’s attention. With robust economic growth, a thriving real estate market, digital transformation, and a commitment to sustainable development, Cambodia is well on its way to becoming an influential player in the region. The next decade will be crucial, as Cambodia continues to build on its strengths and address its challenges.

As investors, citizens, and stakeholders, supporting Cambodia’s vision for the future is essential. Through strategic planning, innovation, and international partnerships, Cambodia can build a future that rivals the success of its Southeast Asian neighbors, including Singapore.

The post Emerging Giant: How Cambodia is Following in Singapore’s Footsteps first appeared on Estatedia | Economy & Real Estate Media in Cambodia.

The kingdom’s trade volume with the fellow RCEP members accounted for 61.6 percent of its total trade volume during the period, said the report from the General Department of Customs and Excise.

The country exported products worth 6.76 billion dollars to the RCEP countries, up 16.3 percent, while it recorded the import of goods worth 18.78 billion dollars from the RCEP countries, up 17.3 percent, the report added.

The Southeast Asian nation’s top five trading partners under the regional mega-trade pact are China, Vietnam, Thailand, Japan and Singapore, according to the report.

Effective in 2022, the RCEP comprises 15 Asia-Pacific countries, including 10 ASEAN member states and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.

Cambodian Ministry of Commerce’s Secretary of State and spokesperson Penn Sovicheat said the RCEP is a catalyst for Cambodia’s trade growth and a magnet for foreign direct investments to the kingdom.

“Despite rising protectionism and weakening global demand, the RCEP has given a boost to regional trade cooperation, bringing great benefits to all member countries,” he told Xinhua.

“With tariff concessions under the RCEP agreement, our export to the fellow RCEP countries will undoubtedly continue to grow throughout this year and beyond,” he added.

Hoe Ee Khor, chief economist of the ASEAN+3 Macroeconomic Research Office (AMRO), said reduction in tariffs and non-tariff barriers has made it easier for Cambodian goods to access larger markets.

“Key Cambodian export products, such as garments and agricultural products, have benefited from improved market access and competitive pricing due to tariff reductions under the RCEP,” he wrote to Xinhua in an e-mail.

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This impressive growth has caught the attention of the International Monetary Fund (IMF), which has revised its forecast for Cambodia’s economic expansion in 2024 to a strong 5.5%. The IMF attributes this upward revision to the buoyant performance of the export sector, particularly in garments and agriculture, as well as the ongoing recovery in the tourism industry.

The IMF’s mission chief to Cambodia, Kenichiro Kashiwase, emphasized the positive impact of free trade agreements with China and South Korea, as well as the Regional Comprehensive Economic Partnership (RCEP), on Cambodia’s economic growth. These agreements have provided the country with valuable market access and preferential trade terms.

However, Mr. Kashiwase also highlighted the importance of diversifying Cambodia’s trading partners to mitigate risks and capture additional opportunities. By expanding its export markets beyond major economies like the United States, China, and Europe, Cambodia can further strengthen its economic resilience.

Report also showed the Kingdom imported some US$21 billion worth of goods from foreign markets, a year-on-year increase of 15.9 percent, the source pointed out, while Cambodia’s total trade volume reached over US$40.9 billion, up 16 percent from US$35 billion during the same period in 2023.

China, Vietnam, and the U.S. were Cambodia’s biggest partners during the period, with a two-way trade volume of US$11.14 billion, US$7.8 billion, and US$5.8 billion, respectively.

However, the U.S. is the biggest market for Cambodia’s products with a total value of US$7.6 billion, sharing about 38 percent of the Kingdom’s total exports, read the report, adding that Vietnam ranked second with import of Cambodian goods reaching US$2.7 billion, a year-on-year increase of 33.8 percent, while the exports to China were valued at US$1.27 billion, up 20 percent.

Cambodia’s main export products are garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles. The Kingdom’s major imports include medicines and supplements, consumables and food and beverages.

Overall, Cambodia’s strong export performance and favorable economic outlook position the country for continued growth and prosperity in the coming years. The IMF’s positive forecast underscores the nation’s ability to capitalize on its economic strengths and seize opportunities presented by regional and global trade agreements.

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In a message on his social media networks this afternoon, Samdech Thipadei Hun Manet said that H.E. Heng Sour, Minister of Labour and Vocational Training and Chairman of the National Council for Minimum Wage, had just reported to him that the minimum wage negotiations for 2025 were concluded with US$206, which won majority of votes, i.e. 46 out of 51.

However, the Premier has decided to add US$2 to the approved figure of US$206, therefore the monthly minimum wage for 2025 is US$208, an increase by US$4 compared to 2024.

Samdech Thipadei Hun Manet also reaffirmed the Royal Government’s continued attention to improving the living standards, careers, and well-being of people from all walks of life despite the difficult circumstances of the global economy.

The increase in the minimum wage for next year, no matter how small, is to alleviate some of the hardships of the workers and employees, he added.

“In addition to the wage increase, I would like to inform the workers and employees and the public that I will continue to urge the relevant ministries, institutions, authorities to monitor and put in place additional measures to determine the possibility of reducing the spending of workers and employees,” he underlined.

The new monthly minimum wage will take effect from Jan. 1, 2025, the Ministry of Labour and Vocational Training said, stressing that besides wage, workers in the garment, footwear and travel goods sector will receive other fringe benefits for regular attendance, transport, rent and seniority bonus.

Garment, footwear and travel goods industry is the largest foreign exchange earner for Cambodia. The sector consists of roughly 1,077 factories and branches, employing approximately 800,000 workers, mostly female.

The 2024 monthly minimum wage is 2024, up from US$200 in 2023, US$194 in 2022, US$192 in 2021, US$190 in 2020, US$182 in 2019, and US$170 in 2018.

The Royal Government of Cambodia has set a policy to increase the minimum wage of workers and employees in the garment, footwear and travel goods industry every year.

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From January to August this year, Cambodia’s total exports were amounted to US$17.58 billion, a year-on-year increase by 16.7 percent, while her total imports were valued at US$18.9 billion, up 16.2 percent, according to the General Department of Customs and Excise’s report.

China remained the top trading partner of Cambodia during the period, followed by the United States, Vietnam, Thailand, and Japan, the source pointed out.

Cambodia’s Free Trade Agreements with China and Korea and the Regional Comprehensive Economic Partnership (RCEP) have contributed to the rise in trade, Secretary of State and Spokesperson for the Ministry of Commerce H.E. Penn Sovicheat said.

“RCEP and the Cambodia-China Free Trade Agreement have given a significant boost to the trade growth,” he underlined.

Cambodia’s main exported products are garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles. Her major imports include medicines and supplements, consumables and food and beverages.

The garment, footwear and travel goods industry is the largest foreign exchange earner for Cambodia. The sector consists of roughly 1,300 factories, employing approximately 850,000 workers, mostly female.

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Thailand topped the list of foreign arrivals to Cambodia during the said period with 1,147,534 visitors, the source added, stressing that Vietnam, China, Lao PDR, the U.S., the Republic of Korea, Indonesia, France, the United Kingdom, and Japan were among the top ten market arrivals in the January-July 2024 period.

Some 1.34 million foreign visitors, or about 36 percent of the total foreign arrivals, arrived in Cambodia by air, a year-on-year increase of 26.4 percent, and the rest via land border gates and waterways, up 21.5 percent, the report continued.

Phnom Penh capital was the most attractive tourism destination for foreign tourists, followed by Siem Reap cultural province and the coastal zone, it underlined.

At the same time, the ministry reported that the number of Cambodia’s outbound tourists rose by 5.9 percent to 1,069,078.

Mr. Thim Sereyvuth, Acting Director of the Siem Reap Provincial Department of Tourism told AKP on Aug. 23 that Siem Reap province is keen to see more tourists as their visits will contribute to the country’s economic growth and local development.

Tourism is one of the four pillars supporting Cambodia’s economy, in addition to garment, footwear, and travel goods exports; agriculture; and the construction and real estate sectors.

Last year, the Kingdom received some 5.45 million foreign visitors, earning a gross revenue of US$3.08 billion. AKP

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