Cambodia, US forge economic ties amid regional uncertainty

Cambodia, US forge economic ties amid regional uncertainty

It is comforting to note that the Royal Government is seeking investment from the US despite its historical relationship as an exporter, says an expert.

Cambodia’s longstanding trade relationship with the US came to the fore with Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC), emphasising yesterday that the Royal Government is assiduously working to enhance bilateral trade and investment relations with the United States.

Addressing a forum attended by American and Cambodian policymakers and the private sector to discuss strategic trade and investment alignments aimed at expanding economic ties amid regional uncertainty, Chanthol stressed that the gathering was taking place at a critical moment for Cambodia’s economic future. “Through collaboration between all stakeholders from the Royal Government and the private sector, we will ensure that our country remains compliant, competitive and attractive for investment and trade.”

The forum themed ‘Investment and Trade with the United States’ was attended by Kun Nhim, Director General of the General Department of Customs and Excise (GDCE), Kith Meng, President of the Cambodia Chamber of Commerce (CCC), and Casey Barneth, President of the American Chamber of Commerce in Cambodia (AmCham), in Phnom Penh.

Chea Vuthy, Secretary General of the Cambodia Investment Board (CIB) of the CDC, Ho Sivyong, Director General of the General Department of Trade Support Services of the Ministry of Commerce (MoC), and Sok Piseth, Vice President of CCC, were also present along with other key dignitaries.

Chanthol stressed that under the guidance of Prime Minister Hun Manet, the Royal Government has worked diligently to enhance bilateral trade and investment relations with the United States.

He noted that these efforts have contributed to a favourable tariff adjustment, with the US administration reducing the tariff rate on Cambodian goods to 19 percent, a competitive rate that enables the Kingdom to remain attractive for investment while sustaining export growth to one of its most important international markets.

The Deputy Prime Minister encouraged active engagement during the discussions and expressed optimism that the forum would generate actionable ideas to sustain and expand the country’s trade footprint.

He highlighted the importance of not only maintaining existing markets but also attracting new investment to diversify Cambodia’s economy further and strengthen its resilience in the global trade landscape.

According to Chanthol, the forum aimed at providing a platform for policymakers, business practitioners and private sector representatives to engage in discussions on maintaining, strengthening, and expanding Cambodia’s trade and investment relationship with the US amid a rapidly evolving global trading environment.

For the domestic private sector, the forum served as a critical link to American partners and investors, offering insights into market trends, compliance requirements and investment incentives.

As Cambodia positioned itself to benefit from growing US market access and strategic trade partnerships, forums signal the Royal Government’s commitment to sustainable economic growth, export diversification and an investment-friendly environment.

Speaking to Khmer Times, Anthony Galliano, Group CEO of Cambodian Investment Management Holdings (CIM), said that it was very encouraging and timely for the government to hold the forum with demonstrated seriousness, having the Deputy Prime Minister and CCC President as honorary speakers.

Galliono, also Vice President of AmCham, went on to add that the bilateral opportunity between the two economies has mainly centred on exports from Cambodia to the US, with the Kingdom tapping into a niche market with low-skilled manufacturing exports in garments, travel goods, footwear and bicycles, representing 40 percent of total exports.

“The US is the largest economy in the world with over $30 trillion GDP, the biggest consumer market globally, the largest and deepest capital markets and the largest source of outward foreign direct investment.”

He added that it is comforting that the government is seeking investment from the US rather than the historical relationship as an exporter, which has created a large trade imbalance that the Trump administration is focused on rebalancing.

“The forum had some specific sub-themes that will progress the bilateral relationship, increase US investment in Cambodia, attack and police illegal transshipments, diversify the manufacturing base to move up the value chain towards medium skill manufacturing and ensure proper governance of certificate origin.”

Gallion applauded the CCC President for his commitment to high-quality governance and a fair and balanced enforcement of regulations to not only attract foreign investment, but to keep it, as Cambodia is in competition with other ASEAN economies for inward investment.

“The Deputy Prime Minister has done amazing work in negotiating the tariff rate downward and is on a path to closing a trade deal with the United States. His investment roadshows continue to attract US investment interest in the Kingdom,” he added.

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