Cambodia’s trade with RCEP countries rises to over $25 bln in first 9 months
October 23, Phnom Penh (Xinhua) – According to a report released on Tuesday, Cambodia's commerce with nations that are part of the Regional Comprehensive Economic Partnership (RCEP) reached $25.54 billion in the first nine months of 2024, up 17.1% from the same period the previous year.
According to the General Department of Customs and Excise statistics, 61.6 percent of the kingdom's overall trade volume during the period came from trading with other RCEP members.
According to the study, the nation imported commodities worth $18.78 billion from the RCEP members, up 17.3 percent, and exported goods worth $6.76 billion to them, up 16.3 percent.
According to the research, China, Vietnam, Thailand, Japan, and Singapore are the top five trading partners of the Southeast Asian country under the regional mega-trade pact.
The 15 Asia-Pacific nations that make up the RCEP, which will go into effect in 2022, include 10 ASEAN members and their five trading partners—China, Japan, South Korea, Australia, and New Zealand.
According to Penn Sovicheat, secretary of state and spokesperson for the Cambodian Ministry of Commerce, the RCEP is a driver of trade expansion in Cambodia and a draw for foreign direct investments in the country.
"The RCEP has boosted regional trade cooperation, bringing great benefits to all member countries, despite rising protectionism and weakening global demand," he told Xinhua.
Cambodia Exports over 500K Tons of Rice, Earning over $376M in Ten Months of 2024
According to the Cambodian Rice Federation, the country earned over USD 376 million by exporting 507,029 tons of milled rice in the first 10 months of 2024.
The Cambodian Rice Federation reports that a total of 254,945 tons of rice, valued at USD 196.93 million, were exported by 55 rice exporters to 66 destinations, including 26 European nations. In the meantime, 93,197 tons valued at USD 61.48 million were sent to China, including Hong Kong and Macau. While 30 other nations—Africa, the Middle East, the United States, Canada, Australia, New Zealand, etc.—imported 57,891 tons worth USD 51.61 million, ASEAN nations, including East Timor, imported 100,996 tons valued at USD 66.61 million.
Fragrant rice made up 73.21 percent of the rice exported, followed by white rice (21.71%), parboiled rice (4.04%), organic rice (1.74%), and other types (0.30%).
Notably, 4,036,336 tons of rice were exported overall in the first seven months, bringing in about USD 1,184.16 million.
Cambodian Rice Expand into New Markets across Islands and
9 Countries
According to Oknha Chan Sokheang, President of the Cambodia Rice Federation, Cambodia will export rice to nine more nations and many islands in 2024, where the majority of consumers will buy fragrant rice.
1. Japan: 140 tonnes of rice
2. Latvia: 350 tonnes of rice
3. Lebanon: 22 tonnes of rice
4. United Arab Emirates (UAE): 319 tonnes of rice
5. Africa: 52 tonnes of rice
6. Comoros: 25 tonnes of rice
7. Macau: 85 tonnes of rice
8. New Caledonia: 2,135 tonnes of rice
9. Martinique: 64 tonnes of rice
According to the president of the Cambodia Rice Federation, rice is still mostly sent in tiny amounts for testing to these new markets. Given that Cambodia is renowned for producing rice of the highest caliber, he expects that these markets will continue to import more rice from the nation. With 379,546 tons of rice shipped to 64 target countries in the first seven months of 2024,
Cambodia made over USD 280 million. 53 rice exporters made these exports possible. Fussy rice made up 70.52 percent of the exported rice, followed by white rice (24.30%), parboiled rice (3.16%), organic rice (1.74%), and other varieties (0.28%).
Cambodia Economic Update June 2024: Export Revival and Trade Shifts
According to the World Bank's Cambodia Economic Update, which was published today, economic activity in Cambodia increased in the first quarter of 2024 despite weak domestic demand. This growth was fuelled by a resurgence of services and goods exports.
The economy is predicted to increase by 5.8% in 2024, up from 5.6% in 2023, and then by 6.1% in 2025 and 6.4% in 2026 as exports of apparel, travel goods, and shoes and tourism continue to spur the recovery.
Arrivals of foreign visitors improved further in the first quarter, reaching 84% of pre-pandemic levels. While exports of non-garments, particularly agricultural commodities, remained strong, exports of clothing, travel items, and footwear saw a recovery. After the US, the Association of Southeast Asian Nations (ASEAN) has become Cambodia's second-biggest export destination. The recovery was also aided by increased foreign investment in manufacturing and agriculture.
Food prices decreased in March, causing inflation to drop to zero. In contrast, the current account saw an unprecedented surplus in 2023 as the trade deficit shrank and tourism receipts increased.
Nevertheless, since the slump in the real estate market persists, construction activity is still limited. Consequently, the growth of domestic credit has decelerated considerably, adversely affecting both private consumption and domestic revenue collection.
Cambodia’s exports to Japan rise 18.4%
In the first quarter (Q1) of this year, Cambodia's exports to Japan were $365 million, up 18.4% over the same period the previous year.
Japan presently ranks as Cambodia's fourth-largest export destination, making for 5.8% of the country's total export market, thanks to the country's increasing exports.
With bilateral trade (exports and imports combined) totaling $507 million in the first three months of this year—an increase of 11% year over year—Japan is now Cambodia's fifth-largest trading partner.
For the first quarter of 2024, Cambodia's trade surplus with Japan was $223 million.
Clothing, purses, shoes, furniture, cosmetics, paper and office supplies, and leather items are among the Kingdom's top exports to Japan. Furniture, electronics, machinery, cars, textiles, and plastics are the principal imports.
Growing trade between the two nations has also contributed to the improvement of bilateral relations, as seen by the Japan International Cooperation Agency's (JICA) increased support for the Royal Government's various infrastructure development efforts.
Along with major infrastructure development like highways, ports, and the digitalization of the economy, the majority of JICA's support for Cambodia is people-centric and covers areas like water supply, public transportation, sewerage management, flood mitigation, technical and vocational training, and healthcare.
Japan is also in favor of Sihanoukville, the sole deep-water port in Cambodia, expanding. With a $203 million soft loan, JICA is supporting the port's new international terminal construction.
When the new port is operational, it will assist PAS in matching or exceeding the ocean freight costs of the neighboring nations in the region, which might further enhance trade and promote Cambodia's economic growth.
The project is anticipated to be finished by mid-2027, at which point the port's capacity to handle containers will increase to 1,250,000 TEUs in less than a year.
Both nations commemorated the 70th anniversary of the start of diplomatic ties as well as the 30th anniversary of the JICA Cambodia Office's founding last year.
Additionally, last year saw the elevation of Cambodia and Japan's relationship to a Comprehensive Strategic Partnership, which is anticipated to increase Japanese investment in Cambodia and create new opportunities for the Kingdom's goods in Japan.