Thailand
US remains Cambodia’s biggest market despite declining exports
The US remained the biggest market for Cambodia with a share of 34.4 percent even though the Kingdom’s exports to the country decreased by 20.2 percent to reach $1.12 billion in the first two months of the year compared to the same period in 2022, showed the latest trade data of the General Department of Customs and Excise (GDCE).
For the last two months of 2023, Vietnam remained the second biggest market for Cambodia, with exports to the country reaching $491 million, registering a growth of 36.1 percent year-on-year. Vietnam now accounts for 15 percent of Cambodia’s total exports.
The Kingdom’s exports to China, another traditional market for the country, registered a decline of 5.5 percent for January and February and accounted for $198 million. China has a share of six percent in the exports from the Kingdom and is now only the fifth biggest market for the Kingdom after Japan and Thailand.
Cambodia exported goods worth $206 million to Japan and $204 million to Thailand during the January-February period, up by 1.7 percent and 13.4 percent compared to the same period in 2022.
Cambodia’s exports to India for the period showed a remarkable growth of 103.9 percent to reach $27 million. Cambodia mainly exports textile products, metals and man-made fibres to India.
Meanwhile, Thailand is planning to organise a series of activities to stimulate exports this year and Cambodia is one of the target markets, in addition to Laos, Myanmar and Vietnam. The country also wants to expand its markets in the Middle East, South Asia and China as well.
According to Thailand’s International Trade Promotion Department under the Ministry of Commerce, the export promotion activities comprise trade missions, participation in international trade fairs, business matching as well as in-store promotions at leading department stores and in e-commerce.
Specialised units were set up by the ministry last year to spur exports, tackle obstacles to trade and curb the negative impact of a global economic slowdown in 2023, according to media reports. The ministry will also organise international trade fairs in Thailand.
The Commerce Ministry’s target is to increase Thailand’s exports by 1- 2 percent this year to $290-293 billion, up from $287 billion last year.
Cambodia’s main exports to Thailand include textiles, agricultural products, gems, raw materials and semi-finished products, while the imports include fish, meat, vegetables, automobiles, organic fertilisers, foodstuffs, and construction materials.
Rubber and agricultural products constitute the biggest export items of Cambodia to Vietnam.
Senior economist and Director General of the Institute of China Studies at the Royal Academy of Cambodia, Ky Sereyvath told Khmer Times recently that diversifying to more markets is also politically significant for the Kingdom.
While the Regional Comprehensive Economic Partnership (RCEP) has helped Cambodia to expand its market, Free Trade Agreements (FTAs) with China and South Korea brought more tariff advantages for the country’s products in these countries.
Indications are that Cambodia is also working with India and Japan to form similar FTAs and has accelerated its internal technical work to start the negotiations for the trade treaties.
Cambodia and UAE are also in the process of finalising the CEPA which will give the Kingdom an opportunity to expand its trade with the Arab world.
Source: https://www.khmertimeskh.com/501255716/us-remains-cambodias-biggest-market-despite-declining-exports/