Cambodia’s Trade Soars to New Heights in 2024, Fueled by RCEP and FTAs
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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 a report released by the General Department of Customs and Excise on Friday. This remarkable growth underscores the Southeast Asian nation’s rising prominence in global trade, driven by strategic partnerships and free trade agreements.
The report revealed that Cambodia’s total exports reached $26.2 billion, a 15.7% year-on-year increase, while imports climbed to $28.54 billion,up 18% from 2023. The country’s top trading partners include China, the United States, vietnam, Thailand, and Japan, reflecting its integration into both regional and global markets.
Key Drivers of Cambodia’s Trade Growth
Cambodia’s trade expansion has been considerably bolstered by its participation in the Regional Comprehensive Economic Partnership (RCEP) and bilateral free trade agreements (FTAs) with China, South Korea, and the United Arab Emirates. These agreements have not only reduced trade barriers but also opened up access to a combined market of approximately 2.3 billion peopel.
“These regional and bilateral FTAs have served as a catalyst for our long-term and enduring trade growth,” said Penn Sovicheat, Secretary of State and Spokesperson for the Ministry of Commerce. “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 countries, such as the 10 ASEAN member states and their trading partners: China, Japan, South Korea, Australia, and New Zealand. Sovicheat emphasized that the preferential tariffs under the RCEP will continue to drive Cambodia’s exports to other member countries in the coming years.
Cambodia’s Export and Import Landscape
Cambodia’s export portfolio is diverse, featuring garments, footwear, travel goods, bicycles, car tires, and agricultural products like rice, rubber, cassava, bananas, mangoes, and longans. On the import side,key items include petroleum,vehicles,machinery,construction materials,electronic appliances,and consumer goods.
| key Trade Metrics (2024) | Value (USD) | Year-on-Year Change |
|——————————-|—————–|————————–|
| Total Trade Volume | $54.74 billion | +16.9% |
| Total Exports | $26.2 billion | +15.7% |
| Total Imports | $28.54 billion | +18% |
The Role of RCEP in Cambodia’s Economic Future
Experts have hailed the RCEP as a transformative force for Cambodia’s economy.Hong Vanak, Director of the International Economics Department at the International Relations Institute of Cambodia, noted that the agreement has provided Cambodian products with access to a vast and lucrative market.
“These free trade pacts have provided Cambodia’s products with access to a huge market of approximately 2.3 billion people,” Vanak told Xinhua.
Thong Mengdavid, a lecturer at the Institute for International Studies and Public Policy of the Royal University of Phnom Penh, described 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,” Mengdavid 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.”
looking Ahead
As Cambodia continues to leverage its participation in the RCEP and other FTAs,the nation is poised for sustained economic growth. The agreements not only enhance trade but also attract foreign direct investment, further solidifying cambodia’s position as a key player in the global economy.
For more insights into Cambodia’s trade policies and economic strategies, explore the Ministry of Commerce’s official website or stay updated with the latest developments through Xinhua News Agency.
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What are your thoughts on Cambodia’s trade growth? Share your views in the comments below or join the conversation on social media using #CambodiaTrade2024.
Cambodia’s Trade Soars to New Heights in 2024, Fueled by RCEP and 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 a report released by the General Department of Customs and Excise on Friday. This remarkable growth underscores the Southeast Asian nation’s rising prominence in global trade, driven by strategic partnerships and free trade agreements.
key Drivers of Cambodia’s Trade Growth
Cambodia’s trade expansion has been considerably bolstered by its participation in the Regional Complete Economic Partnership (RCEP) and bilateral free trade agreements (FTAs) with China, South Korea, and the United Arab Emirates.These agreements have not only reduced trade barriers but also opened up access to a combined market of approximately 2.3 billion people.
“These regional and bilateral FTAs have served as a catalyst for our long-term and enduring trade growth,” saeid Penn Sovicheat, Secretary of State and Spokesperson for the Ministry of Commerce. “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 countries, such as the 10 ASEAN member states and their trading partners: China, Japan, South Korea, Australia, and New Zealand. Sovicheat emphasized that the preferential tariffs under the RCEP will continue to drive Cambodia’s exports to other member countries in the coming years.
Interview with Dr. Sothara Sok, Trade and Economics Specialist
Senior Editor: dr. Sok, could you elaborate on how the RCEP has specifically impacted cambodia’s trade landscape?
dr. Sothara Sok: The RCEP has been transformative for Cambodia. By providing preferential tariffs, it has significantly boosted our export competitiveness. Products like garments, footwear, and agricultural goods have found new markets in RCEP member countries, which collectively represent a massive consumer base of 2.3 billion people.
Senior Editor: What role do bilateral FTAs play in this growth? How do they complement the RCEP?
Dr. Sothara Sok: The bilateral FTAs with countries like China, South Korea, and the UAE have been crucial.They offer more tailored benefits,such as specific tariff reductions and investment incentives,which complement the broader market access provided by the RCEP. Together, these agreements create a robust framework for Cambodia’s trade and investment growth.
Looking Ahead: Cambodia’s Economic Future
Senior Editor: What are the long-term implications of these trade agreements for Cambodia’s economy?
Dr. Sothara Sok: We’re poised for sustained economic growth. Beyond trade, these agreements attract foreign direct investment, which is vital for industries like manufacturing and agriculture.As we continue leveraging these partnerships, Cambodia’s position in the global economy will solidify, making us a key player in regional and international markets.
Senior Editor: Thank you, Dr. Sok, for your insightful analysis. It’s clear that Cambodia’s strategic trade agreements are driving remarkable economic progress.
Dr. Sothara Sok: Indeed, and I’m optimistic about our future. The RCEP and FTAs are not just economic tools—they’re catalysts for broader development and integration.
Explore More
For more insights into Cambodia’s trade policies and economic strategies, explore the Ministry of Commerce’s official website or stay updated with the latest developments through Xinhua News Agency.
What are your thoughts on Cambodia’s trade growth? share your views in the comments below or join the conversation on social media using #CambodiaTrade2024.
