Cambodia’s exports to India reached $140.93 million in the first seven months of this year, registering an increase of 42.8 percent compared to the same period last year.
The jump in exports to India is also one of the fastest growths on a list of the top 20 export destinations of the Kingdom, revealed the latest trade data of the General Department of Customs and Excise (GDCE).
For comparison, the exports to China went up by 16.2 percent, to Vietnam by 20.6 percent and to the US, they declined by 9.1 percent during the same period. The US, however, continued to have the biggest export share of 38.3 percent of Cambodia’s goods, followed by Vietnam and China, with 11.8 percent and six percent respectively.
India accounted for one percent of Cambodia’s total exports, the GDCE data showed.
Cambodia’s imports from India, however, declined by 18.1 percent and reached $127.56 million during the January to July period of 2023, compared to the same period last year, giving the Kingdom a surplus of $13.36 million in bilateral trade for the period.
Pan Sorasak, former Minister of Commerce, told a gathering at the 77th Independence Day celebration of India in Phnom Penh recently that he was pleased with the steady increase in the two-way trade between both countries which amounted to $440 million in 2022.
Sorasak observed that the rapid rise in exports to India was facilitated by the Duty-Free Tariff Preference (DFTP) Scheme it launched for Cambodia in 2018.
The former minister further said he was looking forward to the early conclusion of the Cambodia-India Bilateral Investment Treaty and the Bilateral Free Trade Agreement to further promote the economic development of both countries.
Devyani Khobragade, Ambassador of India to Cambodia, meanwhile, said on the occasion that a number of business exchanges in diverse areas, such as gems & jewellery, electronic and software petrochemicals and pharmaceuticals are poised to boost bilateral trade between the two countries further.
“Bilateral trade (between Cambodia and India) increased after Covid-19. The Bilateral Investment treaty that is nearing finalisation will act as a catalyst for more Indian investment in Cambodia,” she noted.
The ambassador also expressed happiness in the progress of establishing direct air connectivity between our two countries, which will boost trade and help bring more Indian tourists to Cambodia and Cambodian tourists to India.
According to her, the efforts for enhanced connectivity will receive further impetus from the eastward extension of India-Myanmar-Thailand (IMT) trilateral highway, and the road projects in Cambodia with Indian soft credit.
The GDCE data, meanwhile, showed that Japan is the fourth biggest export destination of Cambodia now by accounting for exports worth $655 million and a market share of 4.8 percent. Thailand comes as the fifth biggest export destination of the Kingdom with $575 million worth of goods and a market share of 4.3 percent.
The data also revealed that Cambodia’s exports to Japan declined by 1.9 percent during the January to July period of 2023, compared to the same period last year. However, the exports to Thailand showed a growth of 2.9 percent year-on-year.
Significantly, Cambodia’s exports to many of the European countries also declined during the first seven months of the year compared to the same period last year, indicating a slowdown in demand for garments, footwear and travel (GFT) goods, the mainstay of Cambodia’s exports.
The GDCE data showed that exports to Germany came down by 20.5 percent, Belgium by 34.7 percent, Italy by 18.8 percent, France by 11.1 percent and the Netherlands by 6.3 percent. The exports to the UK declined by 16.4 percent.
Cambodia’s exports to Canada also recorded a significant drop of 28 percent and to Mexico by 14.3 percent year-on-year.
