Cambodia’s exports to RCEP countries rise 23% to $5.8B

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Cambodia’s exports to RCEP countries rise 23% to $5.8B​

October 27, 2023


Cambodia’s deep-sea port at Sihanoukville is benefitting from increasing trade facilitated through FTAs. KT/Chor Sokunthea

Cambodia’s exports to the Regional Comprehensive Economic Partnership (RCEP) countries continued to increase, indicating the emergence of a growing market for the country’s products.

A report from the Ministry of Commerce showed that Cambodia exported $5.8 billion worth of goods to RCEP countries in the first nine months of this year, an increase of 23 percent compared to $4.7 billion in the same period last year.

The two-way trade between Cambodia and RCEP countries, however, decreased by 9.3 percent to $21.8 billion, read the report.

The country’s RCEP trade accounted for 33 percent of the Kingdom’s total trade of $17.59 billion during the three-quarter period, stated the report.

The RCEP free trade agreement entered into force on January 1, 2022.

The regional trade pact comprises 15 Asia-Pacific countries including 10 member states of the Association of Southeast Asian Nations (ASEAN) — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.

Cambodia’s exports to foreign markets in RCEP countries have made a significant contribution to Cambodia’s economic growth, the ministry’s Secretary of State and spokesman Penn Sovicheat said.

Although trade volume with RCEP countries has declined, Cambodia’s exports to these markets have increased, he said.

“This growth shows that Cambodia has implemented the RCEP agreement well and it is good for the country,” Sovicheat told Khmer Times.

Under the mega-regional pact, as much as 90 percent of the tariffs on goods traded among its signatories will be eliminated over the next 20 years.

Cambodia expects to see export growth between 9.4 percent and 18 percent on account of the RCEP agreement, which will contribute to the national economic growth between two percent and 3.8 percent, stated the Ministry of Commerce.

Being the world’s largest trade bloc, the RCEP trade deal has a combined GDP of $26.2 trillion, representing around 30 percent of the global GDP, 28 percent of global trade, and 32.5 percent of global investment.

The mega trade pact has given a major boost to Cambodia’s exports and brought new investments to the country, contributing to its economic development, said Lim Heng, vice president of the Cambodia Chamber of Commerce.