Workers load rice onto trucks. Rice is one of Cambodia’s largest exports to China. Post Staff
Strong diplomatic ties between Cambodia and China have led to a significant increase in the value of trade between the two countries, reaching a record high of over $15 billion in 2024.
The figure represented nearly 30% of Cambodia's total trade volume for the year, which totalled approximately $54.74 billion. Chinese investors are also the leading source of foreign direct investment (FDI) in the Kingdom.
Data from the General Department of Customs and Excise of Cambodia (GDCE) showed that in 2024, the total value of imports and exports between the two nations was $15.19 billion, an increase of 23.8% compared to 2023, which recorded $12.26 billion. Of this amount, imports were valued at $13.44 billion, an increase of 24.6%, while Cambodian exports to China totalled $1.75 billion, a rise of 18.4%.
Based on this data, the trade deficit in 2024 was $11.69 billion, compared to $9.31 billion in 2023.
According to a January 13 press release from The Council for the Development of Cambodia (CDC), a total of 414 investment projects, amounting to approximately $6.9 billion, were approved by the CDC in 2024. Chinese investments remain the largest source, accounting for approximately 49.82% of total foreign investment for the year.
Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), told The Post on January 14 that the growth in bilateral trade could be attributed to several factors, including improved diplomatic relations and the demand for raw materials from China to manufacture export goods for international markets.
He added that, in addition to raw materials, Cambodia also imports many modern automated machines from China to equip factories, improving production efficiency and product quality. Machinery plays a significant role in enhancing Cambodia's manufacturing capacity, he noted.
He also mentioned that the trade dispute between China and the US, which has led to the imposition of tariffs, has encouraged some Chinese factories to relocate to Cambodia, a country with good political and market ties to many nations around the world.
Most of Cambodia's exports to China consist of agricultural products, furniture, jewellery and garments, while imports from China include raw materials for factories, daily consumer products, food and beverages, vehicles, machinery, construction materials, electronics, pharmaceuticals and agricultural products.
Vichet believed that Chinese investment will continue to increase. He also explained that as more Chinese investors set up businesses in Cambodia, imports of raw materials or components will also rise.
However, Vichet urged the Cambodian government and private sector to focus on developing their potential, particularly in agriculture, to strengthen their export capacity to China. He noted that building infrastructure is also essential.
“The government's efforts in building new infrastructure will act as a magnet for foreign investors, especially from China, to invest more in Cambodia,” he added.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), noted that as a developing country, Cambodia has imported many products from China to meet domestic needs and increase its export capacity to international markets.
He added that the Kingdom’s trade deficit with China should not be a cause for concern, as most of the goods Cambodia imports from China are raw materials for the manufacturing sector, which are processed and then exported to high-value markets like the US, Canada and Europe.
“China is an important supplier of raw materials for factories, which are processed into finished goods and then exported to international markets. The growth of factories in Cambodia will further boost trade between the two countries,” he said.
He also pointed out that the Cambodia-China Free Trade Agreement (CCFTA) is a driving force in attracting more Chinese investors to partner with local investors to produce goods for export to China.
To promote bilateral trade cooperation, in November last year, the Ministry of Commerce and the private sector exhibited Cambodian products at the 7th China International Import Expo (CIIE) in Shanghai, China.
The ministry announced that it had showcased over 100 high-quality products, including rice, cashew nuts, travel accessories, bags, geographical indication products, honey, coffee, dried mango, tea, palm sugar, palm juice, palm sugar products, instant noodles and plastic waste recycling products, among others.
