Cambodia’s exports up amid pressure from tariff rate hikes

Cambodia’s exports up amid pressure from tariff rate hikes

Business leaders view the sustained export growth as a testament to the country’s economic diversification, enhanced competitiveness, and the strategic benefits of its free trade agreements.

Cambodia’s exports continue to demonstrate remarkable resilience, surging nearly 13 percent in the first nine months of the year despite mounting pressure from tariff rate hikes in key foreign markets, most notably the United States.

Official data released by the General Department of Customs and Excise (GDCE) showed last Friday that between January and September, the Kingdom exported products worth approximately $22 billion to international markets, an increase of 12.9 percent compared to the same period last year’s figure of $19.83 billion.

The US is the Kingdom’s biggest market with an export value of $9.284 million, followed by Vietnam, China, and Japan with export value of $2.939 million, $1.180 million, and $1.165 million, respectively.

The growth comes even as Cambodian exporters face significant adjustments to new trade policies, including reciprocal tariff increases on certain goods entering major markets. Garments, footwear, and travel goods, the traditional mainstays of Cambodian exports, along with newer sectors like bicycles and agricultural products, have been the primary drivers of this export acceleration.

Government and business leaders view the sustained export growth as a testament to the country’s economic diversification, enhanced competitiveness, and the strategic benefits of its free trade agreements.

Penn Sovicheat, Secretary of State and spokesman for the Ministry of Commerce, attributed the government’s successful strategy to navigating global trade headwinds.

Speaking with Khmer Times, Sovicheat said, “Our strong export performance reflects the growing competitiveness and diversification of Cambodian-made products.”

The official also noted that the government has been working closely with affected industries to improve efficiency and reduce the cost of doing business to maintain the Kingdom’s price advantage against regional competitors.

Cambodia’s main export products are garments, machinery, electrical equipment, footwear products, leather goods, grain, furniture, rubber, fruits, vegetables, pearls, toys and textiles.

The Cambodia Chamber of Commerce’s Vice President Lim Heng emphasised that the key drivers under the trade preferences provide huge markets for made-in-Cambodia products.

“Manufacturing products are increasingly shipped abroad, particularly to the markets under the FTA, and regional partners under RCEP, and to countries where Cambodia has trade preferential access under the EBA and GSP schemes. This diversification is key to long-term economic stability,” Heng said.

CCC Vice President also linked the export surge directly to increased Foreign Direct Investment (FDI) in key manufacturing sectors.

During the first nine months of this year, Cambodia has seen massive fixed-asset investment across diverse manufacturing and infrastructure projects.

Figures from the Council for the Development of Cambodia showed that 546 investment projects with a total capital investment of $7.8 billion have been approved in the first nine months of this year, up 73 percent from 315 projects over the same period last year.

Those investment projects have been mainly focused on the areas of garment and non-garment manufacturing industries, infrastructure, agriculture and agro-industry, and tourism, the report said.

Meanwhile, the country imported $24.61 billion worth of goods from abroad during the period, a year-on-year increase of 16.6 percent. Cambodia’s major imports include medicines and supplements, consumables and food and beverages.

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