Pailin longans in Pailin town and province are prepared for export to China. maff
Bilateral trade between Cambodia and China saw a year-on-year increase of nearly 30% in the first two months of 2024, according to the General Department of Customs and Excise (GDCE).
Between January and February, trade between the two nations totalled $2.2 billion, up by 29% compared to $1.7 million in the same period of 2023. Cambodia exported goods worth $227.75 million to China, marking a 15% increase, while imports were valued at $1.97 billion, a 30.8% rise and accounting for almost 90% of total trade.
The Kingdom’s deficit for the period was $1.74 billion, an increase from the $1.31 billion logged during the same period last year.
China stands as Cambodia’s largest trading partner, as per the GDCE.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, attributed the consistent growth in trade volume between the two countries to strengthened diplomatic relations.
He also noted the significance of the Cambodia-China Free Trade Agreement (CCFTA) and both countries’ membership in the Regional Comprehensive Economic Partnership Agreement (RCEP).
Vanak highlighted China’s role as a principal supplier of raw materials and goods globally, stating that the world’s second-largest economy would continue to be a vital source for the Kingdom.
He said this was particularly true for raw textile inputs, which Cambodia processes into finished products for export to international markets.
“China has long been a major source of raw materials or ingredients for factories and enterprises in Cambodia. Trade volume between the two nations is expected to continue increasing in the future,” he remarked.
The economist added that, besides import-export activities, many Chinese financiers are directly investing in Cambodia.
According to the National Bank of Cambodia (NBC), China led direct investment in the Kingdom as of the first quarter of 2023, accounting for about 45% of the total 185.7 trillion riel ($45.77 billion), followed by South Korea, Singapore, Japan, Vietnam, Malaysia and Thailand.
Vanak asserted that as a developing country, the Kingdom primarily exports agricultural products and natural resources to the Chinese market.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, previously stated that due to their strong diplomatic ties, referred to as the “China-Cambodia ironclad friendship” and China’s role as a key supplier of essential materials to Cambodian factories and manufacturing enterprises, trade between the two countries has consistently grown, despite the severe economic crisis in recent years.
“The trend of trade growth between the two nations is expected to continue in the future, particularly Cambodia’s agricultural exports,” he remarked.
Heng expressed no concern over the gap between import and export values, explaining that most Chinese imports comprise raw materials or semi-finished products which are then processed and assembled into finished goods in Cambodia for export to international markets.
He said the majority of Cambodia’s exports to China are agricultural products and textiles, while imports from China are varied and include raw materials for textiles (such as fabrics, thread and needles), construction materials, automobiles, machinery, electrical equipment, electronic components, pharmaceuticals, food and agrochemicals, among others.
In 2023, trade between the two countries reached $12.26 billion, marking a 5% increase compared to 2022. Cambodia exported goods worth $1.48 billion to China, a 19.2% rise, while imports were valued at $10.79 billion, an increase of 3.3%, as per the GDCE.
