Bilateral trade with Germany slumps 17% in first 9 months
Bilateral trade with Germany slumps 17% in first 9 months
Trade between Cambodia and Germany during the first nine months of 2023 amounted to approximately $779 million, marking an over 17% decline over the same period in 2022, as reported by the General Department of Customs and Excise (GDCE).
According to GDCE Commodity Trade Statistics for January to September, imports and exports between the two countries totalled $778.67 million, representing a 17.7% decrease from the $946.32 million recorded during the corresponding period in 2022.
Bilateral trade with Germany accounted for 2.21% of the country’s total international trade volume in the first nine months of the year, which reached $35.16 billion.
Germany currently stands as Cambodia’s seventh-largest trading partner, trailing behind China, the US, Vietnam, Thailand, Japan and Indonesia.
Cambodian exports to Germany decreased by 25.2%, amounting to $619.64 million, while German imports surged by 35.4% to reach $159.03 million.
The country’s trade surplus with Germany increased by $460.61 million.
In September, bilateral trade totalled $73.69 million, a 19.21% drop compared to September 2022. Cambodian exports in September amounted to $56.01 million, a 31.1% decrease, while German imports increased by 78.9% to $17.68 million, as per the GDCE.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), attributed the decline in bilateral trade volume, especially in Cambodian exports, to the ongoing global economic challenges that have led to reduced German orders.
He told The Post that most of Germany’s imports from Cambodia consist of textile products, and this decline does not reflect negatively on the quality or capacity of the country’s goods.
He highlighted that the downturn in international trade volume is a worldwide phenomenon, stemming from political and economic crises that have escalated over the past three years.
“The decline in trade volume is associated with the global economy’s state. Exports and imports are expected to rise with global economic recovery and improved diplomatic relations,” he said.
He added that Germany’s membership in the EU grants Cambodia export benefits under the Everything But Arms (EBA) framework.
During an October 16 meeting in Germany between Tek Reth Kamrong, a secretary of state for the Ministry of Commerce, and Jan Cernicky, director of the Department of Economics and Innovation at the German think tank Konrad Adenauer Stiftung (KAS), Cernicky stated that the German Chamber of Commerce intends to establish an office in Cambodia.
He said the move aims to gain a deeper understanding of business and investment opportunities in the country.
Reth Kamrong said the ministry is committed to fostering closer cooperation with trading partners, particularly Germany, by encouraging businesses to explore expanding their investments in the country.
During the meeting, both parties discussed various crucial matters, including the Kingdom’s readiness to graduate from least developed country (LDC) status, the nation’s logistics development plan and progress in implementing green and digital economy initiatives.
Hong Vanak, an economics researcher at the Royal Academy of Cambodia, said that having the German office in Phnom Penh could promote specific economic and trade cooperation between the two countries.
“Germany is the largest economy in Europe, so it could be a big market for Cambodia. In the past, we have exported goods to the German market, but the trade volume between the two countries is small. As Germany is within the EU, we will would need EU support,” he added.
Commodities in trade with Germany include clothing, motorcycles, shoes, cereals, coffee, hats, umbrellas and electrical appliances exported from Cambodia, while machine parts, pharmaceuticals and processed food waste for animal feed are the major imports from Germany, as reported by the ministry.
For reference, trade between Cambodia and Germany exceeded $1.247 billion in 2022, marking a 19.3% increase from the previous year. Cambodian exports to Germany surpassed $1 billion, a 23% increase, while imports amounted to $163.28 million, down by 0.8%, according to the GDCE.
