Trade grows despite global conflicts: Sovicheat
Trade grows despite global conflicts: Sovicheat
Ministry of Commerce spokesperson Pen Sovicheat reported that Cambodia’s trade volume with the international community is consistently growing, maintaining steady orders and purchases, especially to countries in the Regional Comprehensive Economic Partnership (RCEP).
“Despite global conflicts and diminishing purchasing power, orders from Cambodia have continued. We have managed to maintain the volume of these orders without a decline. While some goods have experienced a drop in orders, there has been an increase in orders for other products,” he highlighted at a March 4 press conference.
Sovicheat noted that Cambodia remains a leading exporter of bicycles and is also a significant exporter of spare parts, electronic components and solar panels.
“In January 2024, Cambodia exported commodities worth nearly $2 billion to its main trading partners, marking a 27% increase. Therefore, the Kingdom’s trade volumes with international markets have increased by nearly 17%,” he said.
The spokesman said China is Cambodia’s primary trading partner, noting that trade volume between the two nations exceeded $1.1 billion in 2023, an increase of 18.7%.
He spotlighted that trade with Vietnam was worth over $677 million that year, up by 41.5%, while trade with the US reached over $644 million, a 10.8% increase.
To enhance exports, Sovicheat urged companies and manufacturing enterprises focused on exporting to strengthen their production capacities.
“In reality, we face the loss of some tax advantages; however, Cambodia has accepted alternative conditions to prepare for implementation. Companies and enterprises must concentrate on enhancing their capabilities to grow and improve their products,” he said.
“We have transitioned from being a Least Developed Country [LDC] to a developing country. As we stand to lose some preferences, it is necessary to enhance our high-quality production and techniques to meet market demand,” he added.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, noted that the Kingdom’s exports to countries within the RCEP include fewer textile and garment items compared to exports to the US and Europe, focusing instead on non-garment sectors like bicycles, electronic components and agricultural goods.
“Within the RCEP framework, it is evident that we still lack products for export, and our products have not yet met the market demand in RCEP countries, especially South Korea and China,” he explained.
“Therefore, we need to address the issue, but I see the government has identified this and is stimulating the development of some priority policies, particularly in the agricultural sector,” he added.
Regarding the conflict in the Red Sea, Sovicheat stated that it could indirectly affect fuel prices in Cambodia, raising concerns that the situation might lead to increased petrol retail prices in the country.
“The rise in fuel prices could impact production and various industries. While the direct impact isn’t substantial, the indirect effect is evident in the continuing rise of fuel prices. Nonetheless, Cambodia has diversified its fuel sources and relies on seasonal fluctuations in petroleum prices based on refinery markets in Singapore,” he stated.
