Plans by freight giant US-headquartered FedEx for direct flights to Cambodia is likely to have a positive impact on the Cambodian economy, experts are saying.

A FedEx representative, who met with officials from the Ministry of Commerce and Ministry of Public Works and Transport on August 30, said direct flights to Cambodia are expected from October.

Senior officials of both the ministries expressed their support and encouraged FedEx to start operations which would also help expand US-Cambodia relations.

Chea Chandara, president of the Logistics and Supply Chain Business Association in Cambodia (Loscba), told The Post on August 31 that FedEx operates in many countries, where one of its main business segments is express couriers.

“If FedEx uses its aircraft to carry goods directly to Cambodia, it would not only facilitate fast goods shipments to and from Cambodia, it would also highlight our country’s potential to investors or international companies.

“As far as I know, there have been no companies which use air transportation for express mail shipment from abroad to Cambodia and vice versa. Such direct flights will help reduce the cost of couriers as well as increase the speed of delivery,” Chandara said.

He added that air express packages would highly benefit the small- and medium-sized enterprise sector, seeing that it would shorten delivery times.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia (RAC), said the transport sector – passengers and goods – has played an important role in ensuring political cooperation and exchange of goods between countries around the world.

When the transportation sector is busy and fast, it will greatly contribute to a country’s economic growth and improve relations with other countries.

Vanak also noted that as shipments increase, so would the number of tourists and investors.

“In the context of the Fourth Industrial Revolution, everything needs to be done efficiently and quickly. Direct delivery would have a lot of positive effects for customers and service providers,” he said.

At the same time, increased activity in the transportation sector would help the government gain more tax revenue which can be used to develop the country.

Previously, State Secretariat of Civil Aviation spokesman Sin Chansereyvutha told The Post that the regulator welcomes all airlines to Cambodia on the basis that increased flights would benefit the national economy.

Following the reopening of the country last November, the number of domestic and foreign flights has steadily increased.

Data from the General Department of Customs and Excise of Cambodia showed that bilateral trade with the US in the first seven months of 2022 rose 45.2 per cent to $5.893 billion.

Of that, imports from the US amounted to $196.700 million, up 3.2 per cent, and exports grew 47.3 per cent to $5.696 billion. Cambodia’s trade surplus with the US expanded 45.2 per cent to $5.893 billion for the period.