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Cambodia’s exports to India record Q1’s fastest growth of 67%
Cambodia’s exports to India went up by 67 percent during the first quarter (Q1) of the year, the fastest growth among the top 20 countries that export from the Kingdom.
For comparison, the exports to China went up by only 2.1 percent and to the US, they declined by 15.2 percent during the same period. The US, however, continued to have the biggest export share of 33.8 percent of Cambodia’s goods, revealed the latest trade data of the General Department of Customs and Excise (GDCE).
Cambodia exported $1.8 billion worth of goods to the US in the first three months of the year. Vietnam has the second biggest share of 16.9 percent of Cambodia’s exports with $910 million worth of goods. The Kingdom’s exports to this neighbouring country, in fact, rose by a significant 19.9 percent during the period.
Thailand, meanwhile, has emerged as the third biggest market for Cambodia’s exports with $334 million and a share of 6.2 percent. The share of China is the fourth largest at 6.1 percent with $329 million. Japan, which holds the fifth position with 5.7 percent, imported $308 million worth of goods from the Kingdom.
India, which imported $69 million worth of Cambodian goods has only 1.3 percent of the market share but it recorded the fastest growth in the first quarter.
According to Vichet Lor, Vice President of Cambodia Chinese Commerce Association (CCCA), the latest trade data is a clear indication that the US-China trade war is starting to have its effects on Cambodia’s exports now.
“India on the other hand is a rising Asian and world economic star which has over eight percent economic growth last year. India is also keeping a neutral stand with regard to recent political turmoil in the world including in the Russia-Ukraine war and this also gives it an economic advantage,” Lor told Khmer Times.
The CCCA Vice President explained that the uncertainty prevailing in the Chinese capital market and the downward trend of Chinese domestic consumption are reasons for the slowness in the growth of exports from the Kingdom to China, traditionally one of the biggest markets for Cambodia.
“India, on the other hand, is a new manufacturing centre and a new IT hub. India’s increasing purchasing power helps it to import more from other countries,” he said, adding that the country also has a strategic geographical location and this also plays to its economic advantage.
According to Lor, more Indian companies will invest in Cambodia in the coming years and this will further boost Cambodia-India economic ties.
The recent visit of an Indian business delegation to the Kingdom has also renewed the talks about Indian high-tech companies investing in Cambodia and also joining hands for upskilling and reskilling Cambodian human resources.
Cambodia’s Ministry of Commerce and the Embassy of India in Cambodia have also stepped up cooperation to further promote trade and investment between the two countries.
Cambodia and India have recently accelerated their internal technical work to start the negotiations for a bilateral free trade agreement. The pact could further enhance trade and economic cooperation between the two countries.
Source: https://www.khmertimeskh.com/501275494/cambodias-exports-to-india-record-q1s-fastest-growth-of-67/