Cambodia’s exports to EU, UK soar in 5 months

Cambodia’s exports to EU, UK soar in 5 months

Trade experts attribute the rise in exports to continued preferential market access and Cambodia’s competitive production costs.

Cambodia posted strong export growth to both the European Union (EU) and the United Kingdom (UK) in the first five months of 2025, driven by rising shipments of bicycles, mangoes, textiles, and footwear, according to official trade data from the Ministry of Commerce.

From January to May, exports to the EU reached $1.92 billion, marking a sharp 23.38 percent increase compared to the same period last year. Imports from the EU, however, dropped 6.75 percent to $304 million.

Among the standout performers were bicycle parts, which soared by 206.04 percent, mangoes by 212.42 percent, and pepper by 115.89 percent. Meanwhile, some sectors saw a decline, with exports of vehicle parts falling by 7.10 percent and sugar plummeting by 99.84 percent.

Trade with the UK also showed a positive trend. Exports rose by 15.50 percent to $394.10 million, while imports fell by 10.13 percent to $21.02 million. Key drivers included textiles and footwear, which rose by 19.54 percent and 37.51 percent respectively.

Despite the overall growth, several Cambodian export categories to the UK saw steep declines. Solar panel exports dropped to zero, along with vehicle parts and rubber. Cashew nut exports also fell drastically by 99.84 percent.

Officials and trade experts attribute the rise in exports to continued preferential market access and Cambodia’s competitive production costs, while calling for more diversification to offset the declines in certain sectors.

The European market continues to play a crucial role in supporting Cambodia’s export growth, despite past trade preference adjustments, said Lim Heng, Vice-President of the Cambodia Chamber of Commerce.

Speaking to Khmer Times, Heng emphasised the enduring strength of Cambodian exports to Europe. “The European market is very important for Cambodian exports. We know that in the past, we had EBA with Europe. Our exports to Europe have been increasing. Even though we lost 20 percent, this market is still good,” he said.

Heng highlighted that while some Cambodian exporters may face challenges due to the recent US tariff measures, opportunities remain in the European and British markets through the Generalised Scheme of Preferences (GSP), which continues to offer favourable conditions for Cambodian products.

“For those who may be affected by US tariffs, they can turn to the European and British markets, where we still benefit from the GSP preferential system,” he said.

He added that the demand for Cambodian products such as garments, footwear, bicycles, and agricultural goods remains strong in the EU and UK, contributing to sustained export momentum.

“Cambodian exports will continue to increase towards the European and British markets,” Heng affirmed, underscoring the sector’s adaptability and resilience amid global trade shifts.

Related to the UK market and efforts to increase Cambodia’s exports, the British Embassy in Phnom Penh, responding to questions from Khmer Times, has recently outlined several targeted initiatives under the UK Trade Partnerships (UKTP) programme aimed at delivering direct benefits to Cambodian producers.

“In collaboration with the International Trade Centre, the UK is providing advisory support to Cambodian agricultural associations and small and medium-sized enterprises (SMEs),” the embassy said in a statement.

The initiative is designed to strengthen institutional capacity, enhance branding and marketing strategies, and help local producers attain British Retail Consortium (BRC) certification. These efforts aim to increase Cambodia’s value-added exports to the UK market.

“We hope to see more Cambodian agricultural exporters take advantage of the UK’s Developing Countries Trading Scheme (DCTS) in the coming years,” the embassy added.

Beyond facilitating trade, the UK is also focused on empowering SMEs, attracting investment, and promoting safe and prosperous employment for local communities.

“We are supporting agricultural businesses to adopt improved methods that can boost productivity,” the embassy noted. “These innovations will ultimately deliver greater economic benefits to smallholder farmers, who are a vital part of the supply chain.”

The UK’s continued engagement seeks to ensure that Cambodia’s growing exports translate into inclusive economic growth and long-term sustainability for rural communities.

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