Cambodia-US trade tops $1.3 billion
Cambodia-US trade tops $1.3 billion
The US remains the primary recipient of Cambodian goods, accounting for nearly a third of the country’s total exports in the first two months of 2024, as reported by the General Department of Customs and Excise (GDCE).
Between January and February, trade activity between the two nations reached $1.33 billion, a surge of 14% from $1.17 billion in the corresponding period of 2023. Cambodia’s exports to the US were valued at $1.29 billion, increasing by 14.8%, while imports totalled $36.22 million, a decrease of 7.3%.
Cambodia’s trade surplus with the world’s largest economy expanded to $1.26 billion, up from $1.09 billion in the same interval last year. Bilateral trade for the period constituted 16.41% of the Kingdom’s total international sales volume, approximately $8.12 billion.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on March 14 that despite global economic growth not reaching pre-pandemic levels, the country’s exports to the US have demonstrated a positive recovery since late 2023.
He anticipates this trend to persist as Cambodia now offers a wider range of products catering to global market demands.
He added that the US, being a substantial market, consistently imports Cambodian goods, predominantly textiles.
“The recovery in demand for textile products in the US, along with the increase in Cambodia’s production capacity, will provide the Kingdom with an opportunity to earn more from this bilateral trade. The US is Cambodia’s main market for textiles,” he said.
“The recent surge in exports to the US is due to the increasing activity in global tourism. Clothing, shoes and travel goods will see higher demand as people travel more frequently,” he explained.
Cambodia primarily exports garments, footwear, travel goods, solar panels, bicycles and agricultural products to the US, while imports include automobiles, machinery, electronics and medical equipment, as per the GDCE.
Ly Kun Thai, president of the Cambodian Footwear Association (CFA), stated that since the latter half of 2023, there has been a significant recovery in the export of textiles to international markets, notably to the EU, US and Canada.
He highlighted that the US is Cambodia’s largest export market, noting the role of its Generalised System of Preferences (GSP) in facilitating the export of more Cambodian goods.
“For 2024, based on the [association’s] experts’ analysis, the export of footwear, gaiters and [related articles] might outperform last year,” he stated.
“This expectation stems from the robust sales pace of shoes from companies that have been ordering from Cambodia in the latter half of 2023 until now. The stock clearance by buyers and retailers is likely to lead to an increase in orders for [these items] in 2024 compared to 2023,” he added.
At the US-Cambodia Business Forum’s opening ceremony on September 22, 2023, in the US’ New York City, Prime Minister Hun Manet said the strong cooperation between the two countries is mutually beneficial.
He highlighted Cambodia’s strategic location and its young, affordable, abundant and skilled workforce, which is advantageous for the manufacturing sector. This, he noted, leads to lower prices for Cambodian-made goods for consumers, while the Kingdom benefits from its exports to the US.
In 2023, trade between Cambodia and the US amounted to $9.15 billion, a decrease of 1.4% from the previous year. Cambodian exports to the US were valued at $8.9 billion, representing a slight decline of 0.8%, while imports totalled $257.18 million, a more substantial drop of 17.7%, as per the GDCE.
