Exports to US surpass $5.5 billion in H1

Exports to US surpass $5.5 billion in H1

The current structure of trade with the US points to a mutually beneficial relationship, with Cambodia maintaining a surplus due to its export-oriented manufacturing base.

Cambodia’s exports to the United States exceeded $5.5 billion in the first six months of 2025, marking a 25 percent increase compared to the same period last year, according to the General Department of Customs and Excise (GDCE).

The GDCE’s latest report confirmed that the US remained Cambodia’s largest export market during the January-June period. Vietnam ranked second with $2.19 billion, followed by Japan with $753.54 million, China with $750 million, Canada with $604.48 million, and Spain with $511.05 million.

Bilateral trade between Cambodia and the US reached $5.69 billion during the period, reflecting a 25.7 percent year-on-year increase. Of this figure, Cambodian exports accounted for $5.52 billion, up 25.6 percent compared to the same period last year.

Meanwhile, imports from the US totalled $164.9 million, representing a 29 percent increase year-on-year, the report added.

Cambodia’s remarkable export growth to the US in the first half of 2025 demonstrates the success of the Royal Government’s economic vision and strategic policy implementation, according to a leading Cambodian economist.

Economist Darin Duch told Khmer Times that the continued growth in exports highlights the country’s improved production capacity and the impact of ongoing reforms aimed at trade facilitation and market diversification.

“Cambodia’s high rate of exports, especially the significant increase to the US during the first half of 2025, reflects the success of the Royal Government of Cambodia’s sound policy framework and operational strategies,” Darin said.

He pointed to policies focused on diversifying the production base, strengthening logistics and customs procedures, and enhancing market access through bilateral and multilateral trade frameworks as key drivers of the growth.

“This growth trend is a reflection of the increasing competitiveness of Cambodian goods, supported by targeted investments in high-value-added sectors,” he said. “I am encouraged by these results, and I see them as a positive sign of continued momentum into the latter half of the year.”

Darin said the current structure of trade with the US points to a mutually beneficial relationship, with Cambodia maintaining a surplus due to its export-oriented manufacturing base.

“The trade outbalance in favour of Cambodian exports is quite typical for a developing economy. Cambodia remains committed to open and rules-based trade with the US, which can lead to more investment and help address the trade balance over time,” he added.

He said that instead of viewing the trade surplus as a challenge, both sides should see it as an opportunity to deepen cooperation, particularly in areas such as technology, education, green energy, and tourism.

“Cambodia’s export direction is diversifiable,” he noted, adding, “While the US market has helped Cambodia focus on its strengths in textiles, footwear, and travel goods, other markets such as China, Japan, Canada, and Vietnam support a broader mix of products, including agricultural goods, electronics, and processed foods.”

He said that these partnerships are being strengthened through bespoke trade missions, technical assistance, and agreements that reflect the specific requirements of each trading partner.

Darin stressed that building resilience in trade is vital given the global economic uncertainties and shifting supply chains. He said the government is pursuing the integration of value chains within and beyond ASEAN while investing in digital trade infrastructure and strengthening the capacity of small and medium-sized enterprises (SMEs).

“Developing high human capital, enhancing logistics, and improving connectivity with neighbouring countries are also important parts of the government’s long-term strategy,” he said.

Darin said, “Building trade resilience is important under global economic uncertainty. The opening of new export markets and the integration of a hastened value chain within ASEAN and outside are actively pursued. Building the capacity of the Kingdom’s small and medium-sized enterprises, investing in digital trade infrastructure, high human capital, and deepening regional connectivity are also parts of the strategy.”

The US has lowered the reciprocal tariff imposed on Cambodian goods from 49 percent to 36 percent, following weeks of bilateral negotiations.

Sun Chanthol, Deputy Prime and First Vice-Chairman of the Council for the Development of Cambodia (CDC) and Chair of the ad hoc Cambodia-US Bilateral Relations Coordination Working Group urged factories and businesses to remain calm, assuring that the government is committed to protecting national economic interests. “The Royal Government will do everything necessary to safeguard employers, workers, and the interests of our people,” he affirmed.

The move is expected to ease pressure on key Cambodian exports to the US, including garments, footwear, and travel goods.

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