Cambodia and Hong Kong have committed to further strengthening their trade cooperation, particularly by promoting more investment from Hong Kong into Cambodia, while in the first nine months of 2024, trade between the two parties reached over $450 million.

The commitment was made on October 28 at the Cambodia Chamber of Commerce (CCC) during a meeting between CCC president Kith Meng and a Hong Kong business delegation led by Dewan Saiful Alam, chairman of the Asia, Africa and Middle East Committee of the Hong Kong General Chamber of Commerce.

Meng highlighted the strong relationship between the governments and private sectors of Cambodia, China and Hong Kong and encouraged Hong Kong investors to maximise the benefits of this good relationship by investing directly in Cambodia.

He noted that Hong Kong investors could leverage key cooperation frameworks like the Belt and Road Initiative (BRI), the Lancang-Mekong Cooperation (LMC), the ASEAN-China Free Trade Agreement (ACFTA), the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement (CCFTA).

Meng explained Cambodia’s incentives for investors to the delegation, as well as the country’s broad access to international markets for locally produced goods.

Alam expressed his pleasure at visiting Cambodia and noted the potential for strong cooperation between Cambodia and Hong Kong, especially in tourism, energy, trade and investment.

"The Hong Kong business delegation is highly interested in exploring opportunities and forming partnerships with Cambodian businesses. The Hong Kong General Chamber of Commerce will closely collaborate with the CCC to identify and develop joint projects that provide mutual benefits,” he said.

According to the CCC, the delegation included representatives from sectors such as trade, healthcare, energy, legal services, real estate and tourism.

According to the General Department of Customs and Excise (GDCE), from January to September 2024, bilateral trade between Cambodia and Hong Kong totalled $456.75 million, a 46.9% increase year-on-year. Exports to Hong Kong amounted to $155.07 million, down 29.2%, while imports from Hong Kong were $301.68 million, up 58%. 

Cambodia’s trade deficit for the period stood at $146.61 million, up from $70.89 million during the same period in 2023.

Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), told The Post on October 30 that the number of Hong Kong investors coming to open factories and conduct business in Cambodia has been steadily increasing. 

He said this trend is expected to continue, especially as Cambodia approaches upper-middle-income status, at which point the country will see a greater demand for modern technological products.

Vichet added that Hong Kong investors are currently focusing on Cambodia's manufacturing and real estate sectors. He noted that the real estate sector is particularly attractive because land prices in Cambodia remain significantly lower compared to those in Hong Kong, making it an appealing option. 

Additionally, he said the country’s rapid economic growth – exceeding 7% over more than two decades – adds to its appeal.

"In the future, trade volume between Cambodia and Hong Kong will continue to rise, as Hong Kong, a special administrative region, has expertise in technology and innovation. Especially by 2030, when Cambodia becomes an upper-middle-income country, there will be a greater demand for consumer goods and technology,” he added.

CCC vice-president Lim Heng noted that private-sector meetings between Cambodia and Hong Kong will attract more Hong Kong investors and could increase trade between the two parties.

"Currently, most Hong Kong investments in Cambodia are in the garment, electronics assembly, electrical and agriculture sectors,” he added.

During the delegation’s visit, they met with leaders from the Council for the Development of Cambodia (CDC), the Ministry of Commerce, the Phnom Penh Special Economic Zone (PPSEZ) and other Cambodian trade associations.