An electricity worker fixes electrical cables on a power pylon along Hun Sen Blvd in Phnom Penh’s Meanchey district on August 27. Heng Chivoan
Exports of machinery, electrical equipment and parts in the first seven months of 2023 has shown significant growth, according to the Department of Customs and Excise of Cambodia (GDCE).
More than doubled to $1.9 billion compared to $927 million in the same period in 2022, representing 13.7 per cent share of Cambodia’s total export value of $13.5 billion.
The segment’s export value only accounted for 6.7 per cent of total exports in the first seven months of 2022, GDCE said, sharing that for July 2023, the exports surged 63.7 per cent to $272.9 million from $166.8 million in July 2022.
As of June 2023, exports of code 85 goods amounted to $333.11 million.
Hong Vanak, an economist at the Institute of International Relations at the Royal Academy of Cambodia, told The Post on August 27 that updating the investment law, building new public infrastructures as well as political stability have helped Cambodia attract new investors, with domestic production capacity increasing.
The rise in exports of goods within code 85 also reflected the diversification of Cambodia’s exports, unlike the past where exports mainly comprised textile exports.
“Cambodia is evolving to become a source of technology products. When the production capacity of these products rise, it would also help strengthen the mainstays of the Kingdom’s economy,” he said.
Part of Cambodia’s increase in exports was due to bilateral and multilateral free trade agreements. Increasing domestic production and export capacity will also help Cambodia reduce imports, he said.
The global economic crisis caused by the geopolitical conflict and the war between Russia and Ukraine has led to a decline in most international orders, especially textiles, but not for Code 85 goods.
Cambodia Chamber of Commerce vice-president Lim Heng said in addition to a growth in exports, there has been a significant increase in new factory openings in Cambodia.
“Cambodia is becoming a major supplier of machinery, electrical equipment and components to the global market. The increase in export value for these products shows that Cambodia is no longer heavily dependent on textile exports,” he said.
Last year, Cambodia earned nearly $2 billion Code 85 product exports, which is an increase of 84.8 per cent from $1.1 billion in 2021.
The segment’s exports accounted for 8.9 per cent of the total export value of $22.5 billion last year.
