Cambodian firms pin hopes on RCEP boom
Cambodian firms pin hopes on RCEP boom
Local companies across various sectors are anticipating a significant boost in product exports and rising demand for their goods in the vast Regional Comprehensive Economic Partnership (RCEP) market.
RCEP, the world’s largest free trade agreement, encompasses 15 Asia-Pacific nations, including major economies like China, Japan, and South Korea. This translates to a combined market of over 2.3 billion consumers, offering immense potential for Cambodian businesses.
“The reduced tariffs under RCEP and a vast market hold the potential for increased exports,” said Veot Sophorn, a representative from a leading pepper production manufacturer Sela Pepper.
“Our products are of good quality and we’re expecting our exports to RCEP countries to increase significantly,” Sophorn told Khmer Times.
This sentiment is echoed across various industries. Local agricultural producers are eyeing opportunities in China and Korea, and Japan, known for their premium product preferences.
Seng Kimhong, sales supervisor at Kirirom Food Production Co Ltd, said overseas product exports are on a surge especially foreign markets in the region.
“Under trade agreements, we expect to see strong growth of demand for our product high,” Kimhong said.
The Ministry of Commerce is actively supporting businesses in capitalizing on RCEP.
Training programmes are being offered to equip companies with the necessary knowledge to navigate customs procedures, understand product certification requirements, and adapt their marketing strategies for diverse regional markets.
Penn Sovicheat, Spokesman at the Ministry of Commerce, said the agreement has given an impetus to promoting Cambodia-made products to gain momentum across foreign markets.
“The RCEP agreement has boosted Cambodia’s exports. The exports are expected to grow further as local exporters and firms are gradually getting to know the potential export product patterns based on demand from a specific country,” Sovicheat told Khmer Times.
Cambodia’s trade with RCEP countries rose by 13.98 percent to $11.19 billion in the first four months this year, a report from the Ministry of Commerce said.
The Kingdom exported $3.36 billion worth of goods to RCEP, an increase of 16.2 percent from $2.89 billion in the same period last year while imports rose by 13 percent to $7.83 billion, read the report.
The Kingdom’s RCEP trade accounted for 66.2 percent of the country’s total international trade of $16.91 billion.
RCEP is seen as a catalyst for Cambodia’s economic growth and diversification. By leveraging this agreement, local companies can tap into new markets, create jobs, and contribute significantly to Cambodia’s position within the regional and global trade landscape.
