Cambodia-Korea trade zooms 16% to $920 million
The bilateral trade between Cambodia and South Korea reached $920 million in ten months of 2022, a year-on-year increase of 16.3 percent, according to a report from the Korea International Trade Association (KITA).
In the January-October period, Cambodia exported $341 million worth of goods to Korea, up 20.7 percent as compared to the same period last year.
Cambodia imported $579 million worth of products from the East Asia nation, up 8.1 percent year-on-year.
Cambodia mainly exported footwear and other apparel, travel products, beverages, electrical and electronic components, rubber, pharmaceuticals and agricultural products to South Korea.
The Kingdom imported vehicles, electronics, kitchen appliances, beverages, pharmaceuticals and finished plastics and products.
The two countries are about to put into force the bilateral free trade agreement in December, which is set to deepen the economic ties.
The Cambodia-Korea Free Trade Agreement is expected to boost trade between the two countries, with South Korea agreeing to remove tariffs on 95.6 percent of products imported from Cambodia, while Cambodia will eliminate duties on 93.8 percent of imported goods.
Prime Minister Hun Sen and Korean President Yoon Suk Yeol have recently expressed satisfaction with the development of bilateral relations during the past 25 years since the establishment of diplomatic relations between the two countries.
In a bilateral meeting held in Phnom Penh on November 11, both hailed the economic cooperation and the increasing trade exchange between the two countries and were optimistic that the Free Trade Agreement that will enter into force early next month after the ratification by the Republic of Korea would increase significantly the volume of the bilateral trade.
The Cambodia-South Korea free trade agreement can help boost Cambodian exports of garments, textiles, and footwear to South Korea, said Penn Sovicheat, Under-Secretary of State and spokesman at the Ministry of Commerce.
“The agreement is expected to attract more foreign investment, adding that goods exported to the South Korean market must adhere to high technical quality, both industrial and agricultural products,” Sovicheat told Khmer Times.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, said that the free trade agreement would not only open up more markets to Cambodian products but also attract investment for producing and exporting them, providing the best opportunity that will enable the governments of the two countries to promote trade exchanges as planned and through this trade promotion.