Spirits buoyant for Bangladesh trade relations after CCC meet
Spirits buoyant for Bangladesh trade relations after CCC meet
A meeting between the Kingdom’s apex trade body and the Bangladeshi ambassador has fuelled hopes among insiders and observers for better trade relations between the two countries.
Cambodia Chamber of Commerce (CCC) director-general Nguon Meng Tech on May 31 met Mohammed Abdul Hye, the Bangladeshi ambassador with residence in Thailand, at the CCC.
Among the main topics of the agenda were: the promotion of the two countries’ economic and investment potential; encouragement of reciprocal investment and business; and feasibility assessments on setting up industrial projects towards the broader goal of turning Cambodia into an export gateway.
The ambassador also welcomed the CCC delegation to visit Bangladesh, to strengthen ties between the CCC and the South Asian country’s apex trade body, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on June 2 that dialogue between the Kingdom’s private sector and Dhaka could bridge the two countries’ relatively weak trade relations, as well as accelerate and sustain the recovery of their production chains from the Covid-19 crisis.
He noted that textile-related sectors are the linchpin of both countries’ exports to the US and Europe.
Although both countries used to benefit from special trade arrangements under the US’ Generalised System of Preferences (GSP) and the EU’s Everything But Arms (EBA) scheme, the bloc’s 2020 partial withdrawal of Cambodia’s tariff-free access now affects 20 per cent of the Kingdom’s exports to member states, putting the ASEAN country at a disadvantage relative to Bangladesh, he explained.
Offering a silver lining, Vanak said Bangladesh’s EBA status translates to opportunities for Cambodian firms to invest in the world’s third-largest exporter of textiles and apparel.
Garment Manufacturers Association in Cambodia (GMAC) deputy secretary-general Kaing Monika told The Post on June 2 that its relatively low wages positions Bangladesh as a major competitor for Cambodia in the industry.
He said Bangladesh’s garment exports were about $31 billion in the financial year ended June 2021, claiming that it was “recently” outpaced by Vietnam.
By comparison, GMAC figures show that Cambodia exported $11.3896 billion of textile-related products last year, up 15.2 per cent from 2020, of which $8.017 billion or 70.4 per cent were garments.
Monika added: “If they [Bangladeshi companies] open factories here, that would economically benefit Cambodia, especially in terms of employment generation and export earnings.”
In late 2017, Cambodia and Bangladesh signed nine memorandums of understanding, covering areas such as tourism cooperation, information and communication technology (ICT), the establishment of a Joint Business Council, the 2030 Sustainable Development Goals, and vocational training.
Annual bilateral trade between the two countries has remained limited, increasing by about two-ninths between 2019 and 2020 to $20.4 million, according to Trading Economics.
Cambodian imports from and exports to Bangladesh in 2020 were to the tune of $11.17 million and $9.23 million, respectively, rising by nearly a quarter and over a fifth, the latest figures on the statistics website indicate.
In 2019, “knitted or crocheted fabric” accounted for the largest share of Cambodia’s exports, at $6.80 million or about nine-tenths, while “pharmaceutical products” made up the biggest proportion of the Kingdom’s imports, at $3.91 million or just over three-sevenths.
