An exhibition of machinery and electrical equipment in Koh Pich, Phnom Penh. Post Staff
Cambodia earned approximately $1.4 billion from the export of electrical machinery, equipment and parts to international markets during the first eight months of 2024, a decrease of one-third compared to the same period in 2023. Some economists attribute the decline to weak global economic growth.
According to the General Department of Customs and Excise (GDCE), from January to August, exports categorised under Harmonised System (HS) Code 85, which includes the aforementioned products, totalled $1.410 billion, a decrease of 34.8% compared to $2.162 billion in the same period of 2023, and accounting for 8% of the country’s total export earnings of $17.58 billion year-on-year.
In August alone, export revenue from Code 85 products amounted to $226.17 million, down 25.3% from $302.88 million in August 2023.
Speaking to The Post on October 4, Hong Vanak, an economist at the Royal Academy of Cambodia, explained that the decline in these exports could be due to two main factors: the weak global economic growth affecting some production cycles and the significant export growth in 2023.
He added that exports are expected to recover as the global economy gains momentum, with consumer demand and spending rising as economic conditions improve.
“Geopolitical conflicts and wars in some countries have caused consumers to reduce spending on certain non-essential items such as electrical appliances. When the global economy improves, orders for such equipment will surge again,” he said.
To enhance relationships, expand promotion and attract more foreign investors – especially from North America – and increase orders for Cambodian products, delegations from Cambodia’s government and private sector recently visited the US and Canada from late September to early October.
In a September 26 meeting with Laurent Ferreira, president and CEO of the National Bank of Canada, the parent company of ABA Bank in Cambodia, Sun Chanthol, first vice-president of the Council for the Development of Cambodia (CDC), highlighted recent private investments over the past year of the National Assembly’s seventh mandate.
He said the government approved 381 investment projects during that time, a 168-project increase compared to the sixth mandate, reflecting investors' confidence in the government.
“To further boost investor confidence, Cambodia’s government is continuing its full efforts to build nationwide infrastructure, including roadways, airways, waterways, logistics systems and energy solutions to support private investments and create more jobs for Cambodian citizens,” he explained.
In 2023, the country earned $3.129 billion from exporting HS Code 85 commodities, an increase of 56.6% compared to 2022. These earnings accounted for 13.8% of the country’s total export value of more than $22.64 billion, according to the GDCE.
