Cambodia-Japan trade clocks in at $2.33B: JETRO
Cambodia-Japan trade clocks in at $2.33B: JETRO
The Covid-19 crisis failed to slow down bilateral trade between Cambodia and Japan, with volume notching up nearly $2.33307 billion in 2021, up by more than 10.997 per cent compared to over $2.10191 a year earlier, according to data from the Japan External Trade Organisation (JETRO) posted this week.
Last year, Cambodian exports to Japan surpassed $1.75298 billion, a more than 8.395 per cent uptick from $1.61721 billion in 2020, and imports clocked in at $580.084 million, climbing by over 19.678 per cent from $484.703 million.
The Kingdom’s trade surplus with Japan widened by nearly 3.57 per cent to almost $1.17290 billion last year, from close to $1.13251 billion in 2020.
In December alone, Cambodian exports topped $128.29 million, down just shy of 0.6 per cent year-on-year and close to 5.46 per cent month-on-month, and imports were worth nearly $54.44 million, up almost 4.5 per cent year-on-year and over 12.0 per cent month-on-month.
December’s trade surplus came in at nearly $73.9 million, falling almost 4.01 per cent from $76.94 million in December 2020, and down close to 15.21 per cent from more than $87.10 million in November 2021, JETRO figures indicate.
Royal Academy of Cambodia economics researcher Ky Sereyvath told The Post on February 3 that the bright spots in the trade figures, especially the Kingdom’s exports, signal a marked improvement in the quality of Cambodian goods, given the Japanese market’s notoriously rigorous demands for standards.
He said the overall growth also stems from the close relations between the governments and peoples of both countries, coupled with the efforts of Cambodian ministries and institutions and Japanese organisations – such as JETRO, the Japan International Cooperation Agency and private companies.
“The surge in sales of Cambodian merchandise to Japan is also due to a spike in investor inflows for exports to Japan,” he said.
“However, to ensure the sustainability of this growth, Cambodia must strive to further diversify its exports to keep up with developments in the Japanese market,” Sereyvath stressed.
Cambodia Chamber of Commerce vice-president Lim Heng said trade volumes would only increase further as the two countries make progress towards a bilateral free trade agreement.
Now in effect, the new Law on Investment and Regional Comprehensive Economic Partnership (RCEP) will enhance the appeal of the Cambodian market, draw in more Japanese and other foreign investors, and drive global exports of domestic goods higher, he said.
“Imports and exports between the two countries will be strengthened, after reformations in the Cambodian legal system that governs investment, and a series of freight infrastructure developments,” Heng said.
The RCEP is an ASEAN-led trade initiative linking the economies of the bloc’s 10 member states and five other Asia-Pacific countries – Japan, China, Australia, South Korea and New Zealand. The pact came into force on January 1.
Notable Cambodian exports to Japan include garments and agricultural products as well as electrical and electronic components; and major imports are machinery and high-tech products.
For data comparison, preliminary statistics posted by the Ministry of Commerce last month show that bilateral trade volume between two countries topped $1.700 billion in 2021, marking a small increase of 0.49 per cent from more than $1.692 billion a year earlier.
Last year, Cambodian exports to Japan were worth $1.094 billion, up by 3.61 per cent over 2020, and imports were $607 million, down by 4.68 per cent year-on-year, the figures show.
This means that the Kingdom’s trade surplus with Japan would have widened to $0.49 billion in 2020, from $0.42 billion a year earlier.
