Cambodia's trade with China tops $10 mn 2 years before target

23 Dec '21

2 min read

Pic: Prasit Rodphan | Dreamstime.com

Trade between Cambodia and China rose by 45.9 per cent year on year to $10.98 billion between January and October this year, according to China’s commerce ministry. The two sides had committed to reaching annual bilateral trade of $10 billion by 2023, according to Cambodia’s commerce ministry. Bilateral trade fell by 5.2 per cent last year to $8.1 billion.

Imports from China dropped nearly 7 per cent last year as garment factory closures reduced fabric demand.

When the Cambodia-China Free Trade Agreement (FTA) comes into force next year, Cambodia will import 340 kinds of goods from China, 95 per cent of which will be taxed at zero per cent

The two countries are members of the Regional Comprehensive Economic Partnership (RCEP), both of which come into force on January 1.

China’s commerce ministry said the FTA and RCEP will help raise imports from Cambodia and encourage Chinese companies to invest more in the Kingdom, according to Cambodian media reports.

It said Beijing is willing to help promote cooperation in infrastructure development, improve production capacity, expand the digital economy through e-commerce cooperation and develop more sustainable low-carbon industry.

The two countries signed a memorandum of understanding on establishing an investment and economic cooperation working group last week.

Cambodia’s main exports to China include milled rice, cassava, fresh mangoes, and bananas. It mainly imports fabric and accessories for garment production, construction materials and vehicles.

Fibre2Fashion News Desk (DS)

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