Cambodia’s exports to US up 25% in two months

Cambodia’s exports to US up 25% in two months

Cambodia’s exports to the United States soared to over $1.6 billion between January and February 2025, marking a 25 percent increase from the same period last year, according to a report from the General Department of Customs and Excise of Cambodia released earlier this week.

The report highlighted that during the first two months of the year, the US remained Cambodia’s top export market, followed by Vietnam ($648 million), Japan ($301 million), China ($217 million), Canada ($197 million), and Spain ($193 million).

Additionally, the report indicated that Cambodia-US bilateral trade reached $1.67 billion during this period, reflecting a 25.7 percent year-on-year increase. Of this, Cambodia’s exports accounted for $1.62 billion, rising by 25.4 percent from the previous year.

Meanwhile, imports from the US stood at $48.7 million, showing a 34.6 percent increase, the report added.

Darin Duch, an economist, told Khmer Times that the US remains one of Cambodia’s largest export markets, especially for textiles and apparel.

To deepen trade ties, Cambodia should move beyond low-value exports and focus on high-value industries.

He suggested that processing and branding agricultural products, such as rice, cashews, and palm sugar, for the US market could enhance competitiveness. Cambodia should also negotiate more trade agreements and fully utilize existing frameworks, like the US Generalized System of Preferences (GSP), to expand market access.

Cambodia’s economy has benefited from Chinese factory relocations, particularly in manufacturing, which drives GDP growth, infrastructure development, and job creation. However, Darin emphasized that for long-term sustainable development, Cambodia must diversify its economy, strategically expand trade, and accelerate digital transformation.

Strengthening trade with the US is essential amid rising global uncertainties, including trade wars and geopolitical tensions.

He added that infrastructure investment—especially in ports, roads, and energy—will be crucial for reducing logistics costs and improving trade efficiency. A stronger physical infrastructure will not only boost exports but also attract more foreign direct investment (FDI), including from American companies. Additionally, developing Cambodia’s digital and service economy will enhance trade capabilities and create new economic opportunities.

Darin also noted that tourism and hospitality remain vital sectors for diversification. Attracting more American visitors through improved services and targeted promotions will generate revenue and strengthen people-to-people ties. Expanding cooperation in education, technology, and investment will also support economic modernization.

“By proactively expanding trade partnerships, improving infrastructure, and embracing digital transformation, Cambodia can reduce dependence on any single market and enhance economic resilience. Strengthening US-Cambodia trade relations will not only boost exports but also support long-term economic growth and stability,” he said.

Speaking to Khmer Times, Lim Heng, Vice President of the Cambodia Chamber of Commerce, attributed the growth in foreign direct investment (FDI) to Cambodia’s active participation in major trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP), as well as its preferential access to significant markets like the United States and the European Union.

He emphasized that these trade agreements and preferential trade schemes have played a vital role in boosting investor confidence and positioning Cambodia as a favoured destination for investment in the region.

“These bilateral and multilateral trade pacts, along with preferential trade schemes, have instilled strong confidence among investors, encouraging them to invest in Cambodia. The country has emerged as a high-potential destination for investment, benefiting from its strategic location, favourable business policies, and expanding trade opportunities,” he said.

Heng pointed out that Cambodia’s involvement in RCEP has not only improved market access but also reduced trade barriers, enhancing economic integration with regional partners. These benefits are particularly critical in attracting investments across key sectors, including manufacturing and technology, where trade plays a crucial role.

Furthermore, Cambodia’s preferential trade agreements with the US and the EU—such as the Generalized System of Preferences (GSP) and the Everything But Arms (EBA) initiative—provide significant tariff advantages, helping Cambodian exports gain competitive access to major international markets.

He concluded that these trade agreements, combined with the country’s pro-business policies, have solidified Cambodia’s position as an emerging and competitive player in the global trade arena.

khmertimeskh