Cambodia’s exports to Indonesia rose by 65.5 percent and to India by 57.7 percent in the first 10 months of this year – the sharpest growth among the top 20 export destinations of the country, revealed the latest trade data of the General Department of Customs and Excise (GDCE).
By volume and value, the United States is the biggest export destination of the Kingdom, accounting for 40.3 percent of the country’s total exports. But the country’s exports to the US slowed down this year with the first 10 months showing a decline of 1.6 percent to $7.4 billion compared to the same period last year.
For comparison, the exports to Vietnam at $2.2 billion increased by 35.9 percent and to China by 19.3 percent to reach $1.17 billion during the same period. Vietnam, the second biggest market of Cambodia, accounts for 12.2 percent of its exports while China’s share is estimated at 6.3 percent next to Vietnam.
India accounted for 1.3 percent of Cambodia’s total exports in the first 10 months, the GDCE data showed. Indonesia has a share of 0.3 percent. Exports to India reached $233 million and to Indonesia $48.5 million during the period.
Cambodia’s imports from India, however, declined by 20.2 percent and reached $167.52 million during the January to October period of 2023, compared to the same period last year, giving the Kingdom a surplus of $65.87 million in bilateral trade for the period.
The two-way trade between both countries amounted to $440 million in 2022. The rapid rise in exports to India was facilitated by the Duty-Free Tariff Preference (DFTP) Scheme it launched for Cambodia in 2018.
Cambodia’s imports from Indonesia, however, registered an increase of 9.6 percent, giving Indonesia a surplus of $765 million in the first 10 months, the data showed.
Meanwhile, Cambodia and India are also negotiating a Bilateral Investment Treaty and the Bilateral Free Trade Agreement to further promote economic cooperation between the two countries.
Devyani Khobragade, Ambassador of India to Cambodia, said on the occasion of the celebration of India’s Independence Day in August that several business exchanges in diverse areas, such as gems & jewellery, electronic and software petrochemicals and pharmaceuticals have boosted the trade ties between the two countries.
“Bilateral trade (between Cambodia and India) increased after Covid-19. The Bilateral Investment treaty that is nearing finalization will act as a catalyst for more Indian investment in Cambodia,” she noted during the speech.
Significantly, Cambodia’s exports to many of the European countries declined during the first 10 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 26.4 percent, Belgium by 33.5 percent, Italy by 15.2 percent, France by 14.5 percent and the Netherlands by two percent. The exports to the UK declined by 12.7 percent.
Cambodia’s exports to Canada also recorded a significant drop of 25.7 percent and to Mexico by 12.7 percent year-on-year.
