Cambodia’s exports to EU surge to $4B in 2024
Cambodia’s exports to EU surge to $4B in 2024
Cambodia’s exports to the European Union (EU) surged to $4.03 billion in 2024, an increase of 20.45 percent compared to the same period last year, according to a report released by the Ministry of Commerce (MoC).
Speaking at the opening ceremony of the event titled ‘Work Results of MoC in 2024 and the Work Direction for 2025’ recently, Minister of Commerce Cham Nimul highlighted the key achievements and strategic priorities for Cambodia’s trade sector.
Nimul said that Cambodia’s main export markets include the United States, ASEAN member countries, the EU, China, Japan, Canada, the United Kingdom, Australia and South Korea.
These markets reflect the growing global demand for Cambodia’s products and the increasing integration of the country’s economy into regional and international trade systems.
The minister underscored the importance of capitalizing on the free trade agreements (FTAs) that Cambodia has signed with various partner countries.
Nimul urged stakeholders to utilize these agreements to their full potential, aiming to increase market access for Cambodian products.
Furthermore, she stressed the need to expand into new markets to further boost exports and diversify Cambodia’s trade portfolio.
“These efforts will not only enhance our trade competitiveness but also strengthen Cambodia’s position as a key player in the global market,” she said.
According to the report on bilateral trade in 2024, MoC attended the 12th Subgroup on Trade and Investment (SGTI) under the 12th Cambodia-EU Joint Commission (JC12) and related meetings.
“As a result, both sides have strengthened cooperation in the areas of economy, trade, investment, technical assistance for trade, and other sectors,” it said.
Ministry officials also met with members of the European Parliament and European business leaders to enhance economic and trade collaboration between Cambodia and the European Union, it added.
Cambodia mainly exports textiles, footwear, bicycles, foodstuffs, milled rice and other agricultural products to the EU under the EBA (Everything But Arms) scheme.
Speaking to Khmer Times, Anthony Galliano, CEO of Cambodian Investment Management Group and Vice-President of the American Chamber of Commerce (AmCham) in Cambodia, underscored that exports have been the engine of the economy and the increase in the volume to the EU is influenced by several factors.
“Although EBA trade policy has some partial suspensions, Cambodia is still benefitting from duty-free and quota-free access to the EU markets. The EU is increasingly sourcing from Cambodia due to competitive pricing and production quality and European companies are diversifying supply chains to reduce dependence on traditional manufacturing hubs like China,” Anthony said.
Cambodia is also benefitting from environmental and cultural shifts in Europe as bicycles have gained popularity in the EU due to environmental sustainability trends and active lifestyle choices, he added.
“The Kingdom is seeing increased Foreign Direct Investment, particularly from China and other Asian countries, bolstering Cambodia’s manufacturing capacity. Improved infrastructure and increased investment in export-oriented industries have made Cambodian products more competitive in EU markets,” Anthony pointed out.
Seun Sam, policy analyst at the Royal Academy of Cambodia too spoke about how Cambodia’s trade relied on EBA arrangements which benefitted sectors like garments, footwear and agriculture.
If Cambodia loses EBA access, it would significantly impact the economy, Sam said, adding that, without this advantage, Cambodian products would face high tariffs, reducing their competitiveness.
This could lead to a drop in exports as European consumers turn to cheaper alternatives from countries like Vietnam and Bangladesh.
“The loss of EBA could push Cambodia closer to China, its primary economic partner, but Chinese investments cannot fully replace the diverse benefits of EU trade,” Sam said.
To counter these risks, Cambodia should address EU concerns on governance, human rights and democracy, and diversify trade relations while strengthening domestic industries to ensure long-term economic stability, he added.
