Cambodia’s trade with US, China surges in 10 months

Cambodia’s trade with US, China surges in 10 months

While the bilateral trade between Cambodia and the US reached $10.7 billion, reflecting favourable conditions for local businesses and export growth; with China, however, the volume of raw material imports remains disproportionately high.

Despite ongoing geopolitical tensions and border conflicts, Cambodia managed to boost trade with China to $15 billion, a 28.9 percent surge, while trade with the US rose to $10.7 billion, a 27 percent increase, in the first ten months.

The General Department of Customs and Excise (GDCE) yesterday reported that Cambodia imported goods from China worth approximately $14.6 billion, representing a 33.5 percent increase, while exports stood at $1.3 billion, reflecting a 6.6 percent decrease compared to the same period last year.

Overall, total trade between Cambodia and China reached $15.9 billion, a surge of 33.3 percent compared to the first ten months of 2024, making China the largest trading partner for the Kingdom and highlighting the growing reliance on Chinese goods and materials.

While exports to China dropped slightly, the strong import volume underscored China’s role as Cambodia’s largest trading partner, providing essential inputs for infrastructure projects and domestic industries.

Meanwhile, GDCE reported that Cambodia’s exports to the US reached $10.4 billion, up 26.4 percent, while imports rose significantly to $326 million, a surge of 49.7 percent, showing robust commercial activity despite global uncertainties and geopolitical tensions in the region.

In total, bilateral trade between Cambodia and the US reached $10.7 billion, an increase of 27 percent compared to the same period in 2024, reflecting favourable conditions for local businesses and export growth, particularly in textiles, footwear, agricultural products and other key sectors.

Speaking to Khmer Times, Lor Vichet, Vice President of the Cambodia-Chinese Commerce Association (CCCA), said the increase in goods exported to the US is a positive sign, but the volume of raw material imports from China remains disproportionately high.

“Although Cambodia’s trade data show strong growth with both countries, the percentages are unbalanced, with imports from China rising 33.5 percent, exceeding the 26.4 percent growth in exports to the US,” Vichet explained.

He emphasised that the Royal Government should pay attention to the trade imbalance with China and the US, noting that Cambodia’s economy relies on exporting products to the US while bringing in investments and raw materials from China.

Given the high level of Chinese imports, Vichet urged the government to focus on promoting the use of local materials by encouraging factories and processing plants, which would narrow the trade imbalance while boosting the domestic economy.

He went on to add: “On the other hand, Cambodia could explore the feasibility of expanding exports of signature agricultural products or any product with a unique Cambodian identity to China as a means to narrow the trade gap from further ballooning.”

It would further stimulate industrial growth in Cambodia if the Royal Government offered broader tax incentives for businesses that produce raw materials locally,” CCCA Vice-President added.

Anthony Galliano, Group CEO of Cambodian Investment Management Holdings (CIM), told Khmer Times that the surge in Cambodia trade to the US and China is benefiting greatly. This is a consequence of a direct and significant correlation between US imports from Cambodia and Chinese exports to the Kingdom.

“The rise in Chinese exports, primarily raw materials, to Cambodia is a direct enabler and a key driver of the increase in finished goods exports to the US,” said Anthony, also the Vice President of the American Chamber of Commerce in Cambodia (AmCham).

He explained that China supplies over 80 percent of Cambodia’s textile raw materials inputs, as there is a limited domestic supply of these materials, making the country highly dependent on imports, mainly from China, to sustain its manufacturing and re-export industry.

“To feed the textile, garment and travel bag supply chain, Cambodia primarily imports from China knitted or crocheted fabric, manmade staple fibres and filaments, cotton and cotton yarn, accessories and minor inputs and dyeing extracts and pigments.”

“The rise in imports to the US is due to a resilient US economy, with GDP still growing at 2 percent this year. The US is the largest consumer economy in the world, and the prosperity of the garment sector in the Kingdom is fueled by consistent US demand,” he noted.

He stressed that Cambodia has gained an advantage from the recently signed Reciprocal Trade Agreement, which lowered tariffs to 19 percent and stabilised trade relations with the Kingdom’s largest export market.

Anthony added that supply chain mobilisation is also benefiting Cambodia as the US strategy of decoupling with China is causing some Chinese-owned factories to move to Cambodia to circumvent President Donald Trump’s tariffs.

“This increases Chinese investment in Cambodia and boosts exports to the US that would have otherwise come directly from China.”

Trade diversification is also boosting exports to the US. While the garment and footwear sector remains dominant, Cambodia’s exports to the US are becoming more diverse and include agricultural products, electronics, electrical equipment, rubber tyres, plastics and rubber articles, he said.

The AmCham Vice-President continued that with the new trade agreement eliminating tariffs on 100 percent of all US industrial goods and food and agricultural products, the Cambodian market presents an opportunity for a wide range of US products, with expected growth in agricultural, food products and industrial goods.

“There are prospects for motor vehicles and parts built to US safety and emissions standards, which addresses a previous non-tariff barrier. With the expansion of Cambodia’s electronics manufacturing base, there is potential for increased demand for specialised US-made machinery and electrical machinery.”

Anthony noted that Cambodia has agreed to purchase a number of Boeing aircraft and has also committed to accepting US Food and Drug Administration (FDA) certificates and prior marketing authorisations, streamlining the import process for American medical products.

“For agricultural opportunities, specific areas expected to gain traction are US meat and cheese products, ethanol and consumer goods like medicines, supplements, consumables and other food and beverages.”

The elimination of tariffs on a full range of US goods provides commercially impactful market access opportunities and is intended to help address the existing trade imbalance, the CIM CEO added.

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