Cambodia aims for stronger economic ties with US
Cambodia aims for stronger economic ties with US
Cambodian businesses are eager to strengthening relations with the US during the upcoming Donald Trump Administration.
Shortly after president-elect Trump gave his victory speech in New York on Wednesday afternoon in Cambodia time, Prime Minister Hun Manet led the country to congratulate him.
Mr Hun Manet in a Facebook post said that the great victory of Trump is a true testament to the trust and confidence that the American people have in the newly-elected president’s leadership.
“Your return comes at a most crucial time not only for the American people but also for the world at large. Under your wise leadership, I am confident that the indispensable US role in promoting stability, security and prosperity will be further strengthened. The Royal Government and people of Cambodia attach great importance to the long- standing bonds of friendship between our two countries, which mark their 75th anniversary next year,” the Prime Minister said in the message.
“We are fully committed to working closely with your esteemed administration to elevate our existing good bilateral ties to greater heights, and will spare no effort to advance the ASEAN-US Comprehensive Strategic Partnership during Cambodia’s tenure as country coordinator for ASEAN-US dialogue relations,” he added.
Lim Heng, Vice-President of the Cambodia Chamber of Commerce, told Khmer Times that, the new Presidency for Trump is a good sign for Cambodia as US political and economic stability will improve over time.
Trade between Cambodia and the United States is already in good shape, as it is increasing year by year.
“I think of course the new US President is a businessman, so doing business with other countries and Cambodia will bring a lot of mutual benefits. And raising tariffs between the United States and China is also an opportunity for Cambodia, because in the past we have already seen that raising tariffs makes Chinese investors and some other countries to invest and shift manufacturing bases to Cambodia and export to the United States from here,” Heng said.
“What is important for Cambodia is that the United States should reinstate GSP (Generalized System of Preference). If Cambodia can get back the GSP status, it will increase investment in Cambodia as we hope that both economic and political relations between Cambodia and the United States will improve,” he added.
Duch Darin, economist and professor at the Royal School of Administration, told Khmer Times that, regarding trade and investment, Trump’s second term could see a new beginning in the ties with Cambodia.
Cambodia exports a wide range of goods to the US market, including suitcases, cosmetic bags, handbags, backpacks and sunglasses, as well as other products such as bicycles, rice and light bulbs.
Darin observed that US investment in Cambodia covers key areas such as tourism, services, construction, agriculture, textiles, energy, industry and hotels. Major US companies that have invested include Caltex, Chevron, Coca-Cola, Unocal, Conoco, Jupiter, Northbridge and R.M. Asia. Ford recently opened a car assembly plant in Pursat.
The US franchise is also very popular in Cambodia, especially in the food and beverage, retail and hospitality sectors. Well-known brands such as Starbucks, Burger King, KFC, Domino’s, Century 21, Papa John’s, Marriott and Hyatt have contributed to the country’s economic development by providing quality options and creating more jobs for locals.
“I am confident that Cambodia will continue to strengthen exports and increase regional and global trade. Despite the challenges in the global economy, the growth of Cambodia’s exports reflects the resilience and quality of Cambodian production. I hope that Cambodia will be able to continue to attract and strengthen trade and investment relations with the new US President,” Darin said.
In July 2006, Cambodia signed a Trade and Investment Framework Agreement (TIFA) with the United States to promote greater trade and investment in both countries and provide a forum to address bilateral trade and investment issues. The last TIFA meeting took place in Siem Reap, Cambodia, in January 2019.
In the first nine months of 2024, Cambodia’s trade with the United States increased by 6.5 percent to over $5.6 billion. The US remained Cambodia’s largest market, with a 34.4 percent share. In January 2024, the US was the leading buyer of Cambodian exports, purchasing almost $630 million.
Sun Chanthol, Deputy Prime Minister and First Vice President of Council for the Development of Cambodia (CDC), said recently that Cambodia wants more investment from the United States and Europe.
Cambodia’s economy grew 5.4 percent GDP in 2023 and is projected to grow 5.8 percent in 2024 according to the World Bank, which cites a continued rebound in the Kingdom’s tourism and manufacturing sectors as the main drivers of growth. Inflation is projected to be 2.5 percent in 2024, a slight increase from 2.1 percent in 2023, per the National Bank of Cambodia (NBC).
