Cambodia's Commerce Surges with $4.05 Billion in January Trade

Cambodia is off to a roaring start in 2024, showcasing a robust 16.9% surge in trade, amounting to $4.05 billion in January alone. The lates...

Cambodia is off to a roaring start in 2024, showcasing a robust 16.9% surge in trade, amounting to $4.05 billion in January alone. The latest figures released by the General Department of Customs and Excise (GDCE) reveal a substantial growth trajectory compared to the same period last year.

The export sector particularly shines, with a remarkable 27% increase, yielding $1.96 billion in revenue. Notably, China maintains its position as Cambodia's principal trading partner, with transactions totaling $1.15 billion. Following closely are Vietnam at $677 million and the US at $644 million, underscoring the diverse trade landscape.

The US emerges as the leading export destination, capturing 31.9% of Cambodia's exports, valued at $626 million. Impressively, exports to Vietnam and China witnessed exponential growth rates of 116.6% and 50.1%, respectively, reflecting burgeoning trade ties. Despite a trade deficit with China amounting to $911 million, Cambodia boasts surpluses with the US and Vietnam, showcasing a balanced trade portfolio.

Analysts attribute Cambodia's export surge to the global economic resurgence, citing a rebound in demand as a driving force. Notably, the garment, footwear, and travel goods (GFT) sector, which faced challenges in 2023, displays signs of revitalization. January 2024 witnesses significant growth in knitted apparel, non-knitted apparel, footwear, and travel goods, signaling a promising trajectory for the sector.

Cambodia's export basket showcases diversification, with notable growth in edible vegetables, cereals, and rubber-related products. Edible vegetables and cereals exhibit remarkable growth rates of 139.7% and 78.2%, respectively, highlighting emerging export avenues. Additionally, rubber and rubber-made articles contribute significantly to export revenue, experiencing a surge of 123.5%.

Ky Sereyvath, Senior Economist and Director General of the Institute of China Studies at the Royal Academy of Cambodia, underscores the positive correlation between export growth and global economic recovery. He emphasizes the upward trajectory of the Purchasing Managers’ Index (PMI) as indicative of increasing demand, heralding a prosperous outlook for Cambodia's trade landscape.

As Cambodia kickstarts 2024 with impressive trade figures, the nation stands poised for continued economic growth and diversification. With resilient export sectors and burgeoning partnerships, Cambodia charts a promising path in the global trade arena, fueled by innovation, resilience, and strategic collaborations.