Cambodia’s export surge in Q1 amid global trade barriers

Cambodia’s export surge in Q1 amid global trade barriers

Cambodia has continued to experience a strong growth of its exports in the first quarter of this year amid global trade barrier escalation and slower growth in major trading partners.

From January to February of this year, Cambodia exported $6,875 million worth of goods to foreign countries, up 9.8 percent from $6,261 million in the same period last year.

The United States remains the Kingdom’s top market with total exports of $2,426 million, accounting for 35 percent of the country’s total export value during the mentioned period, read the report.

Exports to Vietnam and to China ranked second and third with $1,267 million and $348 million, respectively, read the report.

The Kingdom’s main export products are garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles, according to the ministry.

Penn Sovicheat, Secretary of State and Spokesman at the Ministry of Commerce, attributed the growth in product exports to the high demand for made-in-Cambodia products in foreign markets.

“The increasing exports reflect that Cambodian products are in demand in the foreign markets, notably in the US, European Union and the RCEP members,” Sovicheat said in a forum held on Tuesday in Phnom Penh.

Cambodia’s export growth at the beginning of this year was due to market orders related to regional instability, such as political instability in countries in the region, which caused some factories to move to Cambodia, which led to an increase in orders for both investment and exports, said Lim Heng, Vice-President of Cambodia Chamber of Commerce.

“Cambodia’s trade is still good because Cambodia received a lot of investment this year. So, production and exports have also increased,” Heng said.

The factors that lead to investors and exports increasing are political stability, new investment laws that are very encouraging, and market factors that Cambodia has a free trade market, Cambodia-China FTA, Cambodia-Korea FTA, and RCEP, he added.

Meanwhile, Cambodia imported $7,573 million, up 21.5 percent from $6,234 million. This made the country’s international trade amount to $14,449 million, a year-on-year increase of 15.6 percent.

Cambodia’s major imports include medicines and supplements, consumables and food and beverages.

Cambodia is expected to maintain a steady economic growth trajectory in 2025 and 2026, driven by external demand for manufactured goods and the continued recovery in the tourism sector, according to The Asian Development Outlook April 2025 issued on April 9.

“Cambodia’s economy is forecast to grow by 6.1 percent in 2025 and 6.2 percent in 2026,” ADB stated in the outlook published on Wednesday. This growth is primarily driven by increasing external demand for manufactured goods and continued recovery in tourism, according to the outlook.

Construction and real estate should revive gradually, while agriculture should continue to gain, the report added. However, the positive outlook is subject to downside risks.

These include weakened exports due to tariffs on Cambodian goods amid global trade barrier escalation and slower growth in major trading partners, rising nonperforming loans disrupting financial sector growth, and extreme weather conditions.

khmertimeskh