Cambodia-S Korea bilateral trade marks slight increase
Cambodia-S Korea bilateral trade marks slight increase
Bilateral trade between Cambodia and South Korea in the first two months of 2024 marked a slight increase compared to the same period last year, according to the General Department of Customs and Excise (GDCE).
From January to February, trade between the two nations rose slightly by 2.3% to $126.9 million, up from $124 million in the corresponding period of 2023.
Imports from Korea were over $73 million, down 4% from $76 million, and exports were $53.85 million, an increase of 12.2% from more than $48 million.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on March 18 that the Cambodia-Korea Bilateral Free Trade Agreement (CKFTA), which took effect at the end of 2022, plays a crucial role in boosting exports.
The county’s main exports to Korea include garments, footwear, travel products and agricultural goods, as per the GDCE.
Heng said that in addition to trade, some Korean investors are active in sectors like Cambodian finance, construction and agriculture. He also noted a significant number of Cambodian workers employed in Korea.
“Under the CKFTA, I believe that exports and imports between the two countries will continue to increase, especially in agricultural crop exports from Cambodia,” he said.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, stated that the export of goods to Korea is likely to rise as both countries implement the CKFTA.
He observed that agricultural goods are increasingly becoming key commodities for export to Korea.
“Although trade between the two nations is currently modest, it will definitely see a boost in the future,” he commented.
According to the National Bank of Cambodia (NBC), Korea was the Kingdom’s second-largest source of foreign direct investment (FDI) in the first quarter of 2023, with financing totalling 22.4 trillion riel ($5.467 billion), accounting for over 10% of the country's total FDI.
The central bank highlighted that Korea's investments were mainly in finance, real estate, manufacturing, agriculture, hydropower and construction.
According to the GDCE, exports to Korea were $281.14 million in 2023, up by 20.3% from the previous year, while imports totalled $470.25 million, a decrease of 13.8%. Bilateral trade reached $751.38 million, albeit with a 3.5% year-on-year decline.
Cambodia’s trade deficit with Korea for 2023 stood at $189.11 million, considerably less than the $311.65 million recorded in 2022.
Korea is currently ranked as the Kingdom's 12th-largest trading partner, following countries and territories including China, the US, Vietnam, Thailand, Japan, Indonesia, Germany, Canada, Singapore, the UK and Taiwan, according to the GDCE.
