Logo of Phnom Penh Post newspaper Phnom Penh Post - China trade increases by 37% to pass $11B in 2021

China trade increases by 37% to pass $11B in 2021

Content image - Phnom Penh Post
In 2021, Cambodian exports to China amounted to $1.51 billion, rising by 39 per cent year-on-year, and imports were to the tune of $9.63 billion, up by 37 per cent over 2020, the data show. Heng Chivoan

China trade increases by 37% to pass $11B in 2021

The trade volume between Cambodia and China reached more than $11.1 billion last year, representing a 37.28 per cent year-on-year surge, the Chinese embassy in Phnom Penh reported, quoting figures from the Ministry of Commerce.

In 2021, Cambodian exports to China amounted to $1.51 billion, rising by 39 per cent year-on-year, and imports were to the tune of $9.63 billion, up by 37 per cent over 2020, the data show.

This means the Kingdom’s trade deficit with China widened to more than $8.1 billion in 2021, from around $6 billion in 2020.

Cambodia Chamber of Commerce vice-president Lim Heng said the Kingdom’s strong relations with China has greatly helped boost the Cambodian economy, especially through agricultural exports to the Chinese market.

He explained that the trade deficit was due to a bona fide need that Cambodia shares with many developing countries for raw materials and various production inputs used to make, inter alia, garments and other textile-related goods, electronics and electronic equipment.

“In the coming years, the trade volume between the two countries will increase further as we start to implement the bilateral free trade agreement, together with the new investment law, which will provide more favourable conditions,” Heng said.

“We expect both exports and imports to continue to grow.”

Royal Academy of Cambodia economics researcher Ky Sereyvath ascribed last year’s uptick in the Sino-Cambodian trade volume to: closer bilateral ties, especially as the Kingdom chaired the ASEAN Summit; a Covid-induced reduction in global supply; and the Cambodia-China Free Trade Agreement (CCFTA) that went into effect early this month.

He said the CCFTA would raise total Cambodian exports to China, especially agricultural products.

However, Sereyvath stressed that there are still plenty of obstacles to goods exports to China.

For example, a planned deep-sea port terminal in Preah Sihanouk province is still in the works, forcing Cambodia to rely on ports in Vietnam and Thailand for trade, which could spell trouble if they were to close or operate under restrictions for any reason, he noted.

The economist voiced hope that the new terminal would significantly ratchet up the value of Cambodian trade with China and the rest of the world.

MOST VIEWED

  • Angkor lifetime pass, special Siem Reap travel offers planned

    The Ministry of Tourism plans to introduce a convenient, single lifetime pass for foreign travellers to visit Angkor Archaeological Park and potentially other areas. The move is designed to stimulate tourism to the culturally rich province of Siem Reap as the start of the “Visit

  • Bosba: The first Khmer woman composer from UK’s Cambridge

    Bosba Panh is just 25 years old, but she’s already accomplished some impressive milestones for herself and the Kingdom. On July 24, she graduated with a Master’s degree from the University of Cambridge as the first Khmer woman composer and Khmer music graduate ever at

  • ‘Golden’ Angkor Wat likely due to natural phenomenon: ANA

    Pictures and video clips of the Angkor Wat temple, its spires seemingly coated in gold, have been shared tens of thousands of times on social media, prompting a sense of wonder among those who have seen them. Hong Sam Ath, who took the pictures and

  • Pailin longan winery tries to break through to the big time

    Longan aren’t quite as glamorous as some fruits. They don’t have the star-power of mangos or generate the excitement of a pricey seasonal niche fruit like the pungent durian. Unlike bananas or oranges, which are known and loved everywhere, longan remains a decidedly

  • Debt restructuring over, time to tackle rising NPL ratio

    The Cambodian banking system has just completed a 26-month debt restructuring exercise where scores of loan accounts were revised, classified and provisioned as the rate of non-performing loans inched up, sparking a slight credit risk unease Implemented in April 2020, the Covid-19 debt restructuring measures came

  • Koh Slaket studio resort brings culture with style

    Davitra (Cambodia) Co Ltd’s multi-million-dollar 13ha Koh Slaket studio-cum-resort just east of the capital was inaugurated in the first phase on August 6, providing national and international tourists with a new travel option and job opportunities for locals. The man-made cultural and scenic lakefront getaway