8-12-2023 (PHNOM PENH) Cambodia has experienced a significant boost in earnings from exports to members of the Regional Comprehensive Economic Partnership (RCEP), surpassing $6 billion in the first 10 months of 2023. This marks a growth of over 25% compared to the same period in 2022, according to a report from the Ministry of Commerce released on December 6.
The report highlights that Cambodia exported goods worth $6.45 billion to the top five RCEP members – Vietnam, Thailand, Singapore, China, and Japan – during the January to October period, reflecting a substantial year-on-year surge of 26.5%.
The RCEP, the largest free trade agreement (FTA) globally, encompasses 15 countries, including the 10 ASEAN member states and five prominent Indo-Pacific countries: Australia, China, Japan, New Zealand, and South Korea.
Penn Sovicheat, spokesperson for the Ministry of Commerce, emphasized the significant benefits Cambodia has derived from the implementation of the RCEP, particularly in terms of exporting to member states. This has become a new growth area for the country, especially as it faces a slowdown in exports to traditional markets, such as Europe and the US, due to geopolitical tensions and the aftermath of the Covid-19 pandemic.
Sovicheat pointed out that China plays a crucial role as a major market for Cambodia, particularly for agricultural products like milled rice, yellow bananas, mangos, longans, and pepper. He also highlighted the advantages offered by the agreement, including preferential tariffs, technology transfers, skill development, and employment opportunities generated by foreign direct investment (FDI).
Hong Vannak, an economics researcher at the Royal Academy of Cambodia, attributed the increase in Cambodia’s exports to international markets, particularly RCEP member states, to factors such as improved political and geographical stability, integration of the Cambodian economy into the regional and global economy, reforms in the investment law system, expanded export markets, enhanced transport infrastructure, and the presence of special economic zones (SEZs).
Vannak expressed optimism about the future, stating that Cambodia is well-prepared to meet orders from international markets and has the potential to attract more foreign investors. He believes that international trade, including the country’s exports to global destinations, will continue to grow from 2024 onwards.
The RCEP nations collectively represent approximately 2.2 billion people, accounting for 30% of the global population, and contribute $26.2 trillion to the global GDP, which is equivalent to 30% of the worldwide GDP. These member countries also contribute to around 28% of global trade, as reported by the Ministry of Commerce.
According to the General Department of Customs and Excise (GDCE), Cambodia’s total international trade volume reached $38.66 billion during the first 10 months of 2023. While this represents a 3.1% decrease compared to the corresponding period last year, the country’s significant export growth to RCEP member states is a promising sign for its economic development.
