Cambodia’s trade rises 12.7% in H1 to $26B
Cambodia’s trade rises 12.7% in H1 to $26B
Cambodia’s international trade reached $26.09 billion in the January to June period this year, a rise of 12.7 percent compared to the same period last year to close the first half (H1) of 2024 on a good note, according to the trade data released by the General Department of Customs and Excise (GDCE) yesterday.
The exports during the first half of 2024 rose to $12.29 billion, rising 12.6 percent year-on-year. The pace of growth in exports slowed marginally during Q2 compared to the 18 percent rise in the first quarter (Q1) of January to March.
Cambodia’s imports too went up, reaching $13.8 billion during the January to June period this year, an increase of 12.8 percent compared to the same period last year. For Q1, growth in imports was 6.4 percent.
By the end of June 2024, Cambodia has a trade deficit to the tune of $1.5 billion.
China remained the biggest trading partner of the country in the first half of the year. Trade with China recorded a growth of 18.8 percent during the period, compared to the first six months in 2023, and reached $7.31 billion.
The US is the second biggest trading partner of the Kingdom. Trade between the two reached $4.53 billion in H1 and showed a growth of four percent compared to the same period last year.
When it comes to exports, the US remained Cambodia’s biggest market with a share of 35.8 percent. Exports to the country reached $4.4 billion, a rise of 3.9 percent.
Vietnam is the third biggest trading partner of Cambodia and also its second biggest export destination. The Kingdom’s trade with the neighbouring country recorded a growth of 22.6 percent to reach $4.04 billion.
Exports to Vietnam grew to $2.03 billion, registering an impressive growth of 41.8 percent. Vietnam now accounts for 16.5 percent of Cambodia’s exports.
China is the third biggest export market of the Kingdom with $815 million, a rise of 14.2 percent, compared to the same period last year. China, however, accounts for only 6.6 percent of the exports of Cambodia now.
Japan as the fourth biggest export destination of Cambodia accounts for 5.1 percent of the market. The exports to Japan rose by 15.4 percent compared to the same period last year and reached $629 million.
While Cambodia imported $6.5 billion worth of goods from China, it imported $2.02 billion worth of goods from Vietnam and just $127 million worth of goods from the US.
Thus, Cambodia has a $5.68 billion trade deficit with China but a surplus of $4.28 billion with the US in the H1 period of January to June 2024.
The Kingdom also registered a surplus of $6.76 million in trade with Vietnam. The country has a trade deficit of $1.18 billion with Thailand but recorded a surplus of $307 million with Japan.
Cambodia’s trade with Thailand, its fourth biggest trading partner, increased by 6.4 percent to reach $2.05 billion and with Japan, the trade registered a growth of 10.5 percent to reach $950 million. Japan is the fifth largest trading partner of Cambodia.
It may be noted that in 2023, Cambodia’s international trade declined 1.9 percent compared to 2022. While exports were marginally up by 1.8 percent, the imports showed a decline of five percent.
The Kingdom’s total exports in 2023 stood at $22.64 billion while the imports were estimated at $24.18 billion. The country also recorded a trade deficit of $1.53 billion last year.
The 2023 trade data showed that while most of the exports from Cambodia recorded growth, the main export earner of the garments, footwear and travel goods (GFT) sector struggled throughout 2023 with declining exports that started in the latter half of 2022.
The data for 2024 first half, however, indicates a big turnaround in GFT exports of Cambodia. The exports of knitted apparel articles and clothing accessories registered a growth of 13 percent and non-knitted apparel and clothing accessories, 30.1 percent compared to the same period last year.
Exports of footwear articles grew by 10.5 percent and travel goods by 13.5 percent year-on-year in the first half of 2024.
However, exports of electrical machinery and equipment which constitute the second biggest exported items after garments, showed a decline of 37.4 percent. These exports fetched the country $993 million in the first half of 2024.
Rubber and articles made of rubber brought in $600 million, recording a surge of 85.1 percent, and cereals $936 million, up by 16.9 percent compared to the same period last year.
While speaking with Khmer Times, recently, Ky Sereyvath, Senior Economist and Director General of the Institute of China Studies at the Royal Academy of Cambodia, attributed the growth in Cambodia’s trade to the recovery made by the global economy.
“The world economy is now much better than last year, creating demand for Cambodian goods too,” he said.
