Cambodia, US push for closer trade ties
Cambodia, US push for closer trade ties
Cambodia and the United States have pledged to further boost strong economic and trade ties between the two nations.
Deputy Prime Minister and Minister for Foreign Affairs and International Cooperation Prak Sokhonn said the Kingdom’s trade and investment relationship with the US was one of its most important bilateral partnerships.
He was speaking at a ceremony celebrating 75 years of diplomatic relations on Friday.
“This celebration reflects the enduring friendship and mutual cooperation between our two nations in various fields, highlighting the strengthened ties and collaboration for mutual benefit,” he said.
“The United States has been great support in advancing Cambodia’s socio-economic development.”
Sokhonn said the relationship had been gaining momentum over the past five years, including in people-to-people ties and military cooperation.
Bilateral trade in 2024 increased more than 11 percent to $10.18 billion, overwhelmingly in Cambodia’s favour.
The Kingdom’s exports were $9.9 billion, an increase of 11.4 percent from a year earlier, according to data from the General Department of Customs and Excise of Cambodia released this month.
The US is Cambodia’s largest export market, followed by Vietnam ($3.6 billion), China ($1.7 billion), Japan ($1.4 billion), Canada ($1.1 billion) and Spain ($1 billion), the GDCE said.
Cambodia’s exports to the US are mainly agricultural products, bicycles, travel goods, and electronics.
The Kingdom imports mainly machinery and pharmaceutical products.
The US has contributed $3 billion to support the Kingdom’s economic development and dedicated millions more to supporting Cambodia farmers, through USAID, US Charge d’Affaires Bridgette Walker said at Friday’s ceremony.
“While the US has been, and remains, Cambodia’s largest export market, in recent years, we have also seen an increasing number of US business seeking to expand their market access into the Cambodian economy, bringing innovation and creating jobs,” she said.
Lim Heng, Vice President of the Cambodia Chamber of Commerce (CCC) told Khmer Times that a strong trade and economic relationship with the US was important to the Kingdom’s economy.
“The US market presents a vast opportunity for Cambodian exporters,” he said.
The American Chamber of Commerce (AmCham) says US investment in Cambodia is being fuelled by strong pro-foreign investment policies being implemented by the government – especially the ability for foreign firms to own 100 percent of a company.
The country also has one of the fastest growing economies in Southeast Asia.
The World Bank this month forecast growth of 5.5 percent this year and next year, up from 5.3 percent last year.
The government has forecast GDP growth of 6.3 percent this year.
AmCham said 70 percent of the companies it surveyed expected higher profits for 2024 and 65 percent plan to expand their investment in Cambodia.
“Despite challenges in the banking, real estate, and tourism industries, American and non-American businesses are optimistic about their profitability outlook,” AmCham said in its business climate survey published in November.
“The ability for American investors to own 100 percent of the business eliminates many risks.Other significant advantages include banking in US dollars, tax incentives and unlimited transfers, which simplify financial operations for foreign businesses.
“Factors like limited bureaucracy, low crime and friendliness of the people are moderately valued, further supporting Cambodia’s reputation as a friendly, safe and convenient place to invest.”
