A bulk carrier lays alongside the pier at Sihanoukville Autonomous Port(PAS). STPM
Economist and tourism experts have shared their beliefs that Cambodia needs to diversify its export products and promote its tourism services more broadly to capture a larger share of the Indonesian market.
Total trade between the two countries during the first eight months of 2024 reached nearly $740 million.
Data recorded by Cambodia's General Department of Customs and Excise (GDCE) show that from January to August 2024, bilateral trade between Cambodia and Indonesia amounted to $739.73 million, a 0.3% decrease compared to the same period in 2023, which was $742.07 million. Of this, Cambodia’s exports to Indonesia total $69.78 million, a 136.1% increase, while Indonesia's exports to Cambodia amounted to $669.95 million, a 6% decrease.
According to the GDCE, Cambodia faces a trade deficit of approximately $600.17 million. The value of trade between the two countries accounts for 1.87% of Cambodia's total international trade for the first eight months of 2024, which stood at $36.48 billion. Indonesia is Cambodia’s seventh-largest trading partner, following China, the US, Vietnam, Thailand, Japan and Canada.
Hong Vanna, an economist at the Royal Academy of Cambodia, told The Post on September 25 that Indonesia is a large country with a significant population and is located in the ASEAN region, close to Cambodia. Therefore, if Cambodia can find ways to increase its exports to Indonesia, it would be highly beneficial. He added that to boost exports, the Kingdom needs to strengthen its production capabilities.
“Striving for greater diversification of Cambodia's export products to the Indonesian market is essential to reduce the trade imbalance. Indonesia is a populous country, so aside from consumer goods, tourism is also a key priority that Cambodia should focus on to attract more visitors to the country,” he explained.
He noted that one reason for the significant gap between Cambodia’s export and import values with Indonesia is that Indonesia has a strong industrial sector. Indonesia is currently part of the G20, a group of the world's largest economies.
As of September 25, Indonesia had a population of 284,012,657, according to www.Worldometer.info.
Ho Vandy, managing director of World Express Co, Ltd, commented that Indonesia has the largest population in the ASEAN region, so if Cambodia can improve its promotion of its tourism potential more effectively, it would be beneficial. However, there are currently no direct flights between the two countries.
“In addition to increased promotion campaigns, I would like to see direct flights between the two countries, as they were suspended a few years ago. The lack of direct flights means travellers must transit through other countries, leading to longer travel times and higher costs,” he said.
He added that restoring direct flights with Indonesia would not only boost tourism, trade and investment between the two countries, but it would also attract tourists who are visiting Bali, Indonesia, to consider making Cambodia part of their travel itinerary.
Data from the Ministry of Tourism showed that during the first seven months of 2024, Cambodia received 95,275 Indonesian tourists, an increase of 30.7% compared to the same period in 2023. In 2023, a total of 127,178 Indonesian tourists visited Cambodia.
In September 2023, Indonesia announced that it would purchase 250,000 tonnes of rice from Cambodia over one year as part of its efforts to ensure food security. Indonesia also pledged to support Cambodia's food security infrastructure by supplying fertiliser and providing training to farmers.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, previously noted that as an ASEAN member with strong political and economic cooperation, Cambodia's trade with Indonesia continues to grow, especially under the Regional Comprehensive Economic Partnership (RCEP) agreement.
However, Indonesia's exports to Cambodia are significantly higher due to Indonesia’s large population and numerous industries, making its production and export capacity stronger than Cambodia's.
He added that through the concerted efforts of the Cambodian government and the private sector, he expects Cambodia’s export volume to Indonesia and other international markets to increase, especially as global economic growth strengthens again.
“The bilateral trade is a good sign, but what Cambodia needs to work on further is enhancing its export capacity to more destinations. Agricultural products will become a key sector that Cambodia can capitalise on to boost exports,” he explained.
