Cambodia-US trade recovery underway, with export growth
Cambodia-US trade recovery underway, with export growth
Cambodia-US trade during the first nine months of 2023 reached $7.08 billion, marking a 3% dip from the $7.3 billion in the corresponding period of 2022, as per the General Department of Customs and Excise (GDCE).
The GDCE data showed that exports to the US totalled $6.9 billion, a decrease of 2.1%. On the other hand, imports of US goods to the country stood at $181.02 million, plummeting by 27.8%. As a result, Cambodia’s trade surplus increased marginally to $6.72 billion from $6.8 billion during the same duration the previous year.
The US is Cambodia’s second-largest trading partner, making up 20.13% of the country’s entire international trade volume, which reached $35.16 billion in the first nine months of 2023.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), said that while orders from the US market dropped in the latter half of 2022, there seems to be a gradual recovery. He attributed the decrease in bilateral trade to the global economic downturn, prompting people to curtail daily spending.
Highlighting that over 90% of the bilateral trade volume stems from Cambodian exports, he emphasised the need for the country to enhance exports by diversifying product quality, pricing and categories. A significant portion of exports to the US currently comprises textiles.
“The trade volume reduction between [the two countries] is a result of the global economic situation, not Cambodia’s production and export capabilities,” he explained.
He added that he was optimistic about the rebound of exports linked to tourism, such as apparel and accessories, as global tourism revives.
Prime Minister Hun Manet stressed the mutual benefits of strong relations at the US-Cambodia Business Forum in New York on September 22.
He noted the country’s strategic location and its affordable, skilled workforce as key factors in the manufacturing sector. This, he said, has led to more competitive prices for domestic goods and boosted the nation’s exports to the US.
“It’s one thing to hear about Cambodia’s potential; it’s another to witness it firsthand. We invite investors to explore [our country]. The government remains committed to bolstering cooperation opportunities, addressing challenges and driving the private sector’s growth,” he stated.
Despite global challenges, the World Bank retained its 5.5% economic growth prediction for the country in 2023, bolstered by recovery in the services and tourism sectors post-Covid-19.
For context, in 2022, trade between Cambodia and the US reached $9.281 billion, marking an 18.6% rise from 2021’s $7.826 billion. Cambodian exports accounted for $8.968 billion, a 19.7% increase, while imports stood at $312.48 million, a decrease of 7.1%. The Kingdom’s trade surplus grew to $8.656 billion, as reported by the GDCE.
