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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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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This potential development was highlighted during a yesterday meeting between Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia, HE Sun Chanthol, and a delegation led by Mr. Wei Keliang, Chairman of Xiamen Municipal Committee of the Chinese People’s Political Consultative Conference (CPPCC).

Deputy Prime Minister Chanthol expressed gratitude for China’s enduring support of Cambodia’s development, emphasizing the strong bilateral relationship that has flourished over the past 66 years. He underscored the potential for enhanced cooperation in various sectors, including trade, investment, and tourism.

Chairman Wei Keliang showcased Xiamen City’s economic prowess as a coastal city and special economic zone, expressing enthusiasm for the newly established sister city relationship between Sihanoukville and Xiamen. He emphasized the potential for collaboration in port development, coastal management, and tourism.

Building on these positive developments, Deputy Prime Minister Chanthol proposed the exploration of a free trade zone to further stimulate economic growth and investment between the two countries. He also suggested organizing business matching forums to facilitate trade and investment opportunities.

The potential establishment of a free trade zone between Cambodia and China would significantly enhance market access, reduce trade barriers, and attract foreign investment. This strategic move aligns with both countries’ economic development goals and underscores their commitment to strengthening bilateral cooperation.

Sihanoukville and Xiamen city of the People’s Republic of China have formalized a sister city alliance, aiming to strengthen bilateral relations and cooperation across various sectors. According to the AKP, the Letter of Intent for Friendly Exchanges between the two regions was inked on August 19 in Sihanoukville.

The signing ceremony was graced by Provincial Governor H.E. Mang Sineth and visiting Mr. Wei Keliang, Chairman of Xiamen Municipal Committee of the Chinese People’s Political Consultative Conference (CPPCC).

Both Governor Mang Sineth and Mr. Wei Keliang expressed their satisfaction with the longstanding friendship and robust cooperation between Cambodia and China.

They exchanged views on the development prospects of their respective jurisdictions. Given the similarities in geography between the coastal Preah Sihanouk province and the port city of Xiamen, the two regions have already established collaborative efforts in coastal and port management.

To date, Preah Sihanouk province has forged partnerships with 18 Chinese provinces and cities, including Jiangsu, Hainan, Guizhou, Nanning, and Shenzhen.

China remains the dominant investor in Cambodia, contributing 68% of the total investment capital. This strong economic partnership is underpinned by bilateral trade agreements and the Regional Comprehensive Economic Partnership (RCEP).

Cambodia attracted a staggering US$3.25 billion in fixed-asset investment during the first half of 2024, a 195% increase compared to the same period last year.

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The country’s trade volume with fellow RCEP members accounted for 63 percent of its total trade volume during the January-July period this year, the report said.

The kingdom exported products worth 5.2 billion dollars to RCEP countries, up 13.2 percent, while it recorded the import of goods worth 14.67 billion dollars from RCEP countries, up 18 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.

Entering into force in 2022, RCEP comprises 15 Asia-Pacific countries including 10 ASEAN member states — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — 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 RCEP is a driving force for Cambodia’s trade growth and a magnet to attract more foreign direct investments to the kingdom.

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

“With preferential tariffs granted by the RCEP agreement, there’s no doubt that our export to RCEP countries will continue to rise throughout this year and beyond,” he said.

the RCEP free trade agreement came into effect in January 2022. It encompasses 15 Asia-Pacific nations, including the 10 ASEAN member states (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) and five additional trading partners (China, Japan, South Korea, Australia, and New Zealand).

The agreement offers Cambodia preferential tariffs on various exports, including agricultural products, processed goods, and industrial items. Additionally, Cambodia benefits from knowledge and technology transfer, skill development, and foreign direct investment that creates new jobs. (Xinhua)

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“Thanks to peace, political stability, adult population and human capital combined with strong economic growth, Cambodia has been able to attract many investors from Europe, the United States and Asia,” he said in his speech at the ASEAN-China (Shanxi) Trade and Investment Promotion Seminar, held in Changzhi, China’s Shanxi province this afternoon under the theme “New Opportunities, New Momentum, New Cooperation, and New Development,” as part of the ASEAN-China Week 2024.

As of 2023, foreign direct investment (FDI) in Cambodia amounted to a total of US$48.4 billion, an increase by 7.9 percent compared to a year earlier, he pointed out, attributing this growth to the favourable investment environment, incentives policies for new investments, and large-scale free trade agreements (FTAs) between Cambodia and her strategic trading partners, including the Cambodia-China FTA, Regional Comprehensive Economic Partnership (RCEP) Agreement, Cambodia-Korea FTA, and Cambodia-UAE Comprehensive Economic Partnership Agreement.

According to the minister, last year, China remained the largest investor in Cambodia, with a total investment of up to US$3.7 billion. “Cambodia will provide many opportunities for Chinese companies and investors, especially from Shanxi and ASEAN countries, to invest in the Kingdom,” he stressed.

Cambodia-made products are exported and supplied to a total of 250 million people in the Mekong sub-region, about 630 million consumers in the ASEAN market, and 2.2 billion people in the RCEP countries.

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China remains the dominant investor in Cambodia, contributing 68% of the total investment capital. This strong economic partnership is underpinned by bilateral trade agreements and the Regional Comprehensive Economic Partnership (RCEP).

While Chinese investment leads the pack, local investors also played a significant role, contributing 14.25% to the overall investment. Other key investors include Singapore, Vietnam, and the Philippines.

The CDC’s approval of these projects underscores Cambodia’s attractive business climate and growth potential. The government’s proactive approach to investor attraction and business environment improvement has been instrumental in this success.

This surge in investment is reflected in the broader economic landscape. Cambodia attracted a staggering US$3.25 billion in fixed-asset investment during the first half of 2024, a 195% increase compared to the same period last year.

These developments position Cambodia as a promising investment destination and contribute to its overall economic growth.

Editor’s Opinion:

The surge in foreign investment into Cambodia, particularly from China, is undoubtedly a positive development. It promises to create jobs, stimulate economic growth, and elevate Cambodia’s standing on the global investment stage. The government’s efforts to foster a business-friendly environment are commendable and deserve recognition.

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STRENGHT: Strategic Location, Established Infrastructure

MPSEZ said, the Cambodian government has prioritized Preah Sihanouk’s development due to its strategic location. The province boasts Cambodia’s prime trading hub with unparalleled seaport and airport access, making it an ideal location for international trade. Additionally, Preah Sihanouk benefits from established Special Economic Zones and strong infrastructure, ensuring smooth operations for businesses.

OPPORTUNITIES: Investment Opportunities Abound

Preah Sihanouk offers a plethora of opportunities for investors. The emergence of the Regional Comprehensive Economic Partnership (RCEP) creates new trading dynamics, allowing businesses to optimize their industrial and supply chains.

According to the MPSEZ’s written on the official page, robust macroeconomic conditions pave the way for exploring new industrial opportunities, while exciting new government policies offer additional advantages. Cambodia’s thriving digital economy presents groundbreaking opportunities for forward-thinking businesses seeking a foothold in Asia’s digital future.

PAS: A Model of Success

The success of Sihanoukville Autonomous Port (PAS), Cambodia’s key international port, exemplifies the region’s potential. PAS recently reported a 24.4% revenue increase in the first four months of 2024 compared to 2023, highlighting the economic momentum of Preah Sihanouk.

Government Support for Real Estate Recovery

Recognizing a recent slowdown in real estate investment, the Cambodian government has taken proactive steps. In April 2024, a working group led by Dr. Hean Sahip, Secretary of State of the Ministry of Economy and Finance, approved six new investment projects in Sihanoukville.

These projects, encompassing diverse sectors like housing developments and hotels, represent a combined US$73 million investment and are expected to kickstart economic activity. This government support signals a commitment to revitalizing the real estate sector and strengthening Preah Sihanouk’s economic future.

Government Commitment to Development

The Cambodian government is actively shaping Preah Sihanouk’s future. A recent meeting led by Deputy Prime Minister Dr. Aun Pornmoniroth focused on finalizing the draft report for the “Master Plan to Develop Preah Sihanouk Province into a Model Multi-Purpose Special Economic Zone” and the accompanying “Action Plan Report.” This commitment to comprehensive development ensures a bright future for the region.

Invest in Preah Sihanouk and unlock your business potential in Cambodia’s thriving economic hub!

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Minister Vanndy underscored the Royal Government’s dedication to developing Cambodia Standards (CS), stating, “National standards are paramount for boosting exports through improved quality, production, and productivity.” He acknowledged the potential perception of standards as burdensome for some businesses but emphasized the NSC’s role in creating strategic national standards to support Cambodian products.

To accelerate standards development, Minister Vanndy urged sectoral committees to establish clear targets, prioritizing standards based on economic sector needs. He highlighted the importance of reviewing and refining existing standards to better suit Cambodia’s context, particularly those adopted from international frameworks.

The meeting resulted in the adoption of the draft Cambodia Standard for Rice Liquor, demonstrating the NSC’s commitment to elevating the quality and marketability of Cambodian products. While recognizing the National Institute of Standards’ role as the coordinating body, Minister Vanndy stressed the collaborative nature of the NSC, emphasizing the contributions of sectoral committees in driving national standards development.

The 28th NSC meeting reaffirms the government’s strategic focus on building a comprehensive standardization framework to propel Cambodia’s growth in both domestic and international markets.

Cambodia’s exports surged in the first half of 2024, reaching US$12.29 billion, a 12.6% increase compared to the same period last year. The United States remained the top destination for Cambodian exports.

Cambodia’s main exports include garments, machinery, electrical equipment, footwear, leather goods, grains, furniture, rubber, fruits, vegetables, pearls, toys, and textiles. The garment, footwear, and travel goods industry remains the country’s leading source of foreign income.

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The forum, themed “Exploring the Market Opportunities of Member States, the Regional Comprehensive Economic Partnership Agreement (RCEP) and Hong Kong’s Strengths,” was organized by the China-Hong Kong Chamber of Commerce.

Dr. Senera Sar, Deputy Secretary General of the Cambodian Investment Board of the CDC, represented the Council as a speaker. He addressed an audience of around 700 attendees, primarily from Hong Kong companies specializing in financial services and technology.

Dr. Senera Sar emphasized the potential benefits of the RCEP market for Hong Kong investors and entrepreneurs. He highlighted opportunities in Cambodia’s financial services sector and investment projects supporting small and medium enterprises (SMEs) within Cambodia’s industrial supply chains.

He also stressed the potential for Cambodian businesses to integrate with the broader ASEAN regional supply chain through RCEP.

Additionally, Dr. Senera Sar presented Cambodia’s attractive investment environment, including its political stability, sound macroeconomic policies, and investor-friendly legal framework.

Beyond the forum, Dr. Senera Sar used networking opportunities to connect directly with senior representatives from participating companies. He provided them with further information about investment prospects in Cambodia and invited them to visit the country for a firsthand look.

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