Cambodia-China trade volume soars to over $15B
Cambodia-China trade volume soars to over $15B
Trade volume between Cambodia and China soared to over $15 billion from January to December 2024, a 23 percent increase compared to the same period the previous year, according to a recent report from the General Department of Customs and Excise of Cambodia (GDCE).
GDCE’s trade data showed that bilateral trade volume between Cambodia and China reached $15.18 billion, up 23.8 percent compared to $12.26 billion in the same period last year.
Cambodia’s export value to China was $1.75 billion, an increase of 18.4 percent compared to the same period last year, while Cambodia’s imports from China were worth $13.43 billion, up 24.6 percent.
Speaking to Khmer Times, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association, said that Cambodia imports raw materials such as fabric, buttons, and zippers, and machinery for industry is another major import.
Imports are high because Cambodia mainly imports raw materials from China at low prices to supply its factories, he added.
“In order to increase exports to China, Cambodia should focus on increasing agricultural production to export more. It is essential to prioritize hygiene and quality, as these factors are required not only by the Chinese market but also by other markets,” he said.
Moreover, Sino-US trade disputes have prompted some Chinese investors to establish factories in Cambodia to export goods to the United States, Vichet said. He added that instability in other regional countries has redirected investment to Cambodia.
“In addition, Cambodia maintains political and economic stability, which is a key factor in attracting investment. The country has also improved its internal infrastructure to lower transportation costs, contributing to its efforts to attract more investors and stimulate economic growth,” he added.
However, Cambodia currently faces an overload of informal micro and small enterprises that lack economies of scale, advanced technology, and sufficient resources to compete effectively with regional counterparts, according to Vichet.
To diversify Cambodia’s export base, a practical strategy to formalize these enterprises should be pursued intensively, he said, adding that this will enable them to benefit from emerging technologies, foster innovation, and gain improved access to multiple sources of funding.
“At the same time, formalization will allow these enterprises to capitalize on expanded market access provided by Cambodia’s free trade agreements (FTAs) with trading partners like China and the Republic of Korea, as well as regional trade pacts such as the ASEAN FTA and RCEP,” he said.
Lim Heng, Vice President of the Cambodia Chamber of Commerce, said that the Cambodia-China Free Trade Agreement and RCEP have provided additional momentum to bilateral trade between Cambodia and China, attracting new investment. “Under the Cambodia-China FTA and RCEP, Chinese investors and other foreign investors view Cambodia as a potential export investment hub,” he said.
China has been Cambodia’s largest source of foreign investment, accounting for almost 50 percent of the total investment amount last year, according to the annual report from the Council for the Development of Cambodia (CDC).
Of the $6.9 billion in foreign direct investment (FDI) last year, China contributed 49.8 percent, or an equivalent of $3.43 billion. China topped the list of investors, with local businessmen securing the second position by contributing 33.8 percent.
