US seeks to deepen trade, economic, and investment ties with Cambodia

US seeks to deepen trade, economic, and investment ties with Cambodia

Trade patterns with the US point to a robust and mutually beneficial relationship, an expert says.

Economic growth and bilateral trade were at the forefront of discussions on Friday as Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, received a visiting United States Congressional Delegation (CODEL) led by Congressman Adam Smith (D-WA).

The delegation, which also included Congressman Michael Baumgartner and Congresswoman Chrissy Houlahan, held wide-ranging talks with senior Cambodian officials on strengthening economic cooperation, attracting investment, and creating jobs.

According to official statements, separate meetings were also held with Minister of Commerce Cham Nimul, focusing on expanding trade flows and investment opportunities between the two countries.

In his briefing to the delegation, Aun Pornmoniroth highlighted Cambodia’s steady economic growth over the past three decades despite global uncertainties and geopolitical tensions.

He underscored the Royal Government’s ongoing efforts to diversify the economy, upgrade institutional capacity, and improve the business and investment climate. He also called on the United States to continue providing technical assistance, particularly in education, STEM training, and health, to help enhance the Kingdom’s competitiveness.

The Deputy Prime Minister noted the importance of US engagement as a trade and development partner across key sectors, including garments, non-garment manufacturing, finance, health, and hospitality. He stressed that deeper economic ties would contribute to broader socio-economic development and help sustain Cambodia’s momentum as a regional growth hub.

Congressman Smith, speaking on behalf of the delegation, praised Cambodia’s progress in reducing poverty and maintaining stability, which he said formed a solid foundation for long-term prosperity.

He reaffirmed Washington’s commitment to strengthening commercial relations, supporting digital transformation, tackling online fraud, and facilitating an environment conducive to sustainable, inclusive and resilient economic growth.

The meetings also involved representatives of the American business community and the American Chamber of Commerce in Cambodia, with discussions focusing on innovation and collaboration as drivers of future trade. Both sides signalled a shared intention to reinforce countervailing duty arrangements, expand market access, and bolster private-sector links.

According to the Ministry of Economy and Finance, the high-level talks underscored a mutual desire to build a stronger foundation for economic progress and a broader global partnership between Cambodia and the United States.

The US Embassy in Phnom Penh echoed this sentiment, noting that the delegation’s engagements demonstrated a “shared commitment to economic growth and development,” and highlighted that “together, we’re building a foundation for economic progress and global partnership”.

As Cambodia moves to diversify its economic base and attract new investment, officials said the visit by the US Congressional Delegation represents a tangible step towards deepening bilateral trade relations and unlocking fresh opportunities for businesses on both sides of the Pacific.

Cambodia’s trade and investment relationship with the United States is emerging as a cornerstone of its economic strategy, reflecting both countries’ interest in deepening commercial ties.

Economist Darin Duch told Khmer Times that the trade patterns with the US point to a “robust and mutually beneficial relationship.” He noted that the current trade surplus in favour of Cambodian exports is typical for a developing, export-oriented economy and should be viewed as an opportunity rather than a source of contention.

“The rising trade surplus presents a chance to further engage with the United States and identify opportunities to increase American involvement in Cambodia’s economic growth,” Darin said.

“Key areas include technology, education, tourism, and green energy, which could benefit from both trade and investment flows.”

He added that Cambodia remains committed to open, rules-based trade with the US, a policy that can attract more investment while supporting a balanced and sustainable economic partnership.

While Cambodia’s exports to the United States have traditionally focused on textiles, footwear, and travel goods, Darin said the broader strategy is to diversify trade and investment channels.

This includes leveraging bilateral agreements, technical assistance, and trade missions tailored to the US market, creating the conditions for deeper commercial engagement.

Darin emphasised that building trade resilience is crucial in the context of global economic uncertainty. This involves strengthening small and medium-sized enterprises, investing in digital trade infrastructure, and enhancing regional connectivity, all of which can increase Cambodia’s attractiveness to US investors.

“By combining targeted investment in high-value sectors with effective trade facilitation, Cambodia can ensure that its relationship with the United States remains mutually advantageous,” he said.

Bilateral trade between Cambodia and the United States reached $8.55 billion during the first eight months of 2025, representing a strong 23.6 percent increase compared with the same period last year, according to the latest figures from the General Department of Customs and Excise (GDCE).

The data from the GDCE indicated that total trade surged from $6.92 billion in January-August 2024 to $8.55 billion over the same period this year. Cambodian exports to the US rose by 23.2 percent, reaching $8.31 billion, while imports from the US jumped 39.8 percent to $243 million.

khmertimeskh