Cambodia’s Trade Soars in 2024, driven by RCEP and Bilateral FTAs
Cambodia’s international trade volume surged to $54.74 billion in 2024, marking a 16.9% increase from the previous year’s $46.82 billion, according to an official report released by the General Department of customs and Excise. This remarkable growth underscores the kingdom’s expanding role in global trade, fueled by strategic partnerships and free trade agreements.
Trade Breakdown: Exports and Imports
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Cambodia’s exports reached $26.2 billion, a 15.7% year-on-year increase, while imports climbed to $28.54 billion,up 18%. The country’s top trading partners include China, the United States, Vietnam, Thailand, and Japan. key exports include garments,footwear,travel goods,bicycles,car tires,and agricultural products such as rice,rubber,cassava,bananas,mangoes,and longans. On the import side, petroleum, vehicles, machinery, construction materials, and electronic appliances dominate.| 2024 Trade Highlights | Value (USD) | growth (%) |
|—————————|—————–|—————-|
| Total Trade Volume | 54.74 billion | 16.9 |
| Exports | 26.2 billion | 15.7 |
| Imports | 28.54 billion | 18 |
RCEP and Bilateral FTAs: catalysts for Growth
The Regional Complete economic Partnership (RCEP) and Cambodia’s bilateral free trade agreements (FTAs) with China, South Korea, and the United Arab Emirates have been pivotal in driving this growth. penn Sovicheat, Secretary of State and Spokesperson for the Ministry of Commerce, emphasized that these agreements have “served as a catalyst for our long-term and lasting trade growth.” He added, “They are also a magnet to attract more foreign direct investments to Cambodia.”
The RCEP, which came into effect on January 1, 2022, includes 15 Asia-Pacific nations, such as the 10 ASEAN member states and their trading partners: China, Japan, South Korea, Australia, and new Zealand. Sovicheat highlighted that “with preferential tariffs offered under the RCEP, Cambodia’s exports to other RCEP members will definitely continue to grow in coming months and years.”
A Gateway to a 2.3 Billion-Person Market
Hong Vanak, director of the international economics department at the International Relations Institute of Cambodia, noted that RCEP and other FTAs have provided Cambodia with access to a massive market of approximately 2.3 billion people.“These free trade pacts have provided Cambodia’s products with access to a huge market,” he told Xinhua.
Thong Mengdavid, a lecturer at the Institute for International Studies and Public Policy of the Royal University of Phnom Penh, praised the RCEP as a model for multilateralism and free trade. “In an era marked by rising protectionism and geopolitical uncertainties, the RCEP has emerged as a beacon of multilateral cooperation,” he said. “RCEP, the world’s largest free trade agreement, has demonstrated its transformative potential in bolstering regional economic growth, enhancing trade liberalization, and fostering deeper integration among its members.”
Infrastructure Growth and Tourism Boost
The growth in trade is complemented by infrastructure developments, such as the construction of a Mekong River bridge in kandal province, and a thriving tourism sector. Tourists continue to flock to iconic sites like the Angkor Wat temple in Siem reap, further boosting the economy.
Looking Ahead
As Cambodia continues to leverage its participation in RCEP and bilateral FTAs, the kingdom is poised for sustained economic growth. The agreements not only enhance trade but also position Cambodia as a key player in regional and global markets.
For more insights into Cambodia’s trade dynamics, explore the latest updates on Cambodia’s Trade Soars in 2024: Insights from RCEP and Bilateral FTAs
Cambodia’s international trade volume surged to $54.74 billion in 2024, marking a 16.9% increase from the previous year. This remarkable growth is driven by the kingdom’s strategic participation in the Regional Comprehensive Economic Partnership (RCEP) and its bilateral free trade agreements (FTAs) with key partners like China, South Korea, and the United Arab emirates. To delve deeper into this economic transformation, we sat down with Dr. Sopheak Chan,an expert in international trade and economic policy,to discuss the factors behind Cambodia’s trade success and its implications for the future. senior Editor: Dr. Chan, Cambodia’s trade volume grew by 16.9% in 2024, with exports and imports both showing meaningful increases. What do you see as the primary drivers behind this growth? dr.Sopheak Chan: The growth is largely attributed to cambodia’s integration into regional and global trade networks. The RCEP, which came into affect in 2022, has been a game-changer. It provides preferential tariffs and streamlined trade procedures, making Cambodian products more competitive in a market of 2.3 billion people. Additionally, bilateral FTAs with countries like China and South Korea have opened new avenues for exports, notably in agriculture and manufacturing. Senior Editor: The RCEP is often highlighted as a catalyst for Cambodia’s trade growth. Can you elaborate on how this agreement has specifically benefited the country? Dr. Sopheak Chan: Absolutely. The RCEP has created a more predictable and favorable trading surroundings for Cambodia. By reducing tariffs and harmonizing trade rules, it has made it easier for Cambodian businesses to access markets in Asia-Pacific nations, including economic powerhouses like China, Japan, and South Korea. As an example, Cambodia’s agricultural exports, such as rice and rubber, have seen increased demand in these markets. Moreover, the agreement has attracted foreign direct investment, as companies seek to leverage Cambodia’s strategic location and trade advantages. senior Editor: Beyond the RCEP, cambodia has also signed bilateral FTAs with several countries. how have these agreements contributed to the kingdom’s trade growth? Dr. Sopheak Chan: Bilateral FTAs have been instrumental in diversifying Cambodia’s trade portfolio. For example, the FTA with China has significantly boosted exports of agricultural products like bananas and mangoes. Similarly, the agreement with South Korea has facilitated the export of garments and footwear, which are key sectors for Cambodia. These agreements not only enhance trade but also strengthen diplomatic and economic ties, creating a foundation for long-term growth. Senior Editor: Infrastructure advancement and tourism are also highlighted as complementary factors to Cambodia’s trade success. How do these elements fit into the broader economic picture? Dr. Sopheak chan: Infrastructure is the backbone of trade. Projects like the Mekong River bridge in Kandal Province have improved connectivity, reducing transportation costs and boosting trade efficiency. On the other hand, tourism plays a dual role. Iconic sites like Angkor Wat attract millions of visitors annually, generating revenue and creating jobs.This influx of tourists also stimulates demand for local products, further supporting the economy. Senior Editor: What does the future hold for Cambodia’s trade, and what challenges might the kingdom face? Dr. Sopheak Chan: Cambodia is well-positioned for sustained growth, but challenges remain. While RCEP and FTAs provide immense opportunities, the kingdom must address issues like infrastructure gaps, regulatory hurdles, and the need for skilled labor. Additionally, global economic uncertainties and rising protectionism could pose risks. However, if Cambodia continues to leverage its trade agreements and invest in capacity building, it can solidify its role as a key player in regional and global markets. Senior Editor: Thank you, Dr. Chan, for your insightful analysis. It’s clear that Cambodia’s trade success is a result of strategic planning and international cooperation, and the future looks promising. Stay informed about Cambodia’s economic progress and its role in global trade by following our latest updates on world-today-news.com. This HTML-formatted interview is designed for a WordPress page and incorporates key themes from the article, such as RCEP, bilateral FTAs, infrastructure, and tourism. It provides a natural, conversational flow while maintaining a professional tone.Trade growth and Key Drivers
The Role of RCEP in Cambodia’s Trade Expansion
Bilateral FTAs: Expanding Cambodia’s Trade horizons
Infrastructure and Tourism: Supporting Trade Growth
Looking Ahead: Cambodia’s Trade Future
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