Containers being loaded at Sihanoukville Autonomous Port (PAS). Supplied
Cambodia is actively encouraging South Korean businesses to explore investment opportunities and partner with local financiers as bilateral trade between the two countries surpassed $760 million in the first 11 months of 2024.
The Ministry of Commerce hosted the “Cambodia-Korea Business and Investment Forum” on December 14 during the Cambodia Trade Expo (CTE) to strengthen and expand trade and investment ties.
Suon Sophal, deputy secretary-general of the Cambodian Investment Board (CIB) at the Council for the Development of Cambodia (CDC), highlighted the country’s political stability, strategic location, young workforce, business-friendly policies and robust investment incentives as factors that make the country a prime destination for financiers.
“I believe that Korean investors participating in this event will soon identify viable opportunities for direct or joint investments in Cambodia,” he said.
According to the General Department of Customs and Excise (GDCE), Cambodia-Korea trade from January to November amounted to $761.86 million, marking an 11.5% increase from $683.32 million during the same period in 2023. Exports to Korea rose 13.8% to $288.3 million, while imports from Korea grew 10.2% to $473.56 million, resulting in a trade deficit of $185.25 million, up from $176.49 million in 2023.
Economist Hong Vanak of the Royal Academy of Cambodia noted on December 16 that Cambodia’s favourable geography, stable political environment, investor-friendly laws and growing export markets continue to attract international interest. He emphasised the longstanding contributions of Korean investors in real estate, construction, agriculture, agro-processing and finance over the past two decades.
To further entice Korean businesses, the Cambodian government is prioritising the development of special economic zones (SEZs) in partnership with Korean investors. The Cambodia-Korea Free Trade Agreement (CKFTA) is also a significant driver, particularly for encouraging investment in agricultural production and processing for export to Korea.
“The creation of a Cambodia-Korea SEZ would undoubtedly attract more Korean investors and boost bilateral trade volumes,” Sophal said.
On December 13, Lim Socheat, vice-president of the Cambodia Chamber of Commerce (CCC), hosted a delegation from Korea’s Gyeonggi-do Chamber of Commerce and Industry (GCCI), led by President Bae Hae-dong.
Lim described the visit as a catalyst for strengthening bilateral ties and underscored Cambodia’s investment potential. He assured the delegation of CCC’s support in addressing any challenges they may face.
“Cambodia’s investment law offers the same incentives for both local and foreign investors. I strongly encourage Korean businesses to explore opportunities and form partnerships with Cambodian companies,” Lim said.
Bae expressed his admiration for Cambodia’s rapid industrial growth, noting that the visit and discussions marked important steps toward advancing economic and industrial cooperation between the two nations.
Signed on October 26, 2021, and effective since December 1, 2022, the CKFTA has been pivotal in strengthening trade ties. Under the agreement, Korea eliminated tariffs on 95.6% of its tariff lines for Cambodian goods, with most duties removed immediately.
The agreement is expected to boost the country’s exports in key sectors such as garments, footwear, electronics and rubber, as well as agricultural products including cashew nuts, tobacco, coffee and chili.
In 2023, bilateral trade between Cambodia and Korea reached $751.38 million, down 3.5% compared to 2022. Cambodian exports rose 20.3% to $281.14 million, while imports from Korea fell 13.8% to $470.25 million, according to the GDCE.
