Logo of Phnom Penh Post newspaper Phnom Penh Post - Electric gear, linked exports record shocking 64% jump

Electric gear, linked exports record shocking 64% jump

Content image - Phnom Penh Post
Cambodia exported $1.090 billion worth of electrical machinery and equipment and related products in the first eight months of 2022, up 64.18 per cent from the $663.585 million recorded over the same time in 2021, according to Customs. PHOTO SUPPLIED

Electric gear, linked exports record shocking 64% jump

Cambodia exported $1.090 billion worth of electrical machinery and equipment and related products in the first eight months of 2022, up 64.18 per cent from the $663.585 million recorded over the same time in 2021, according to Customs.

Analysts ascribed this uptick to brisk momentum in Cambodia’s economic diversification push, coupled with a blossoming production industry and expanding export channels powered by an all-round investment boom as well as supportive arrangements with key trading partners of the Kingdom.

The aforementioned category of items, corresponding to Chapter 85 of the harmonised tariff schedule, accounted for 6.97 per cent of the value of the Kingdom’s total exports over the period, or $15.642 billion, General Department of Customs and Excise of Cambodia (GDCE) statistics indicate.

In August alone, Chapter 85 exports were $162.461 million, up 91.95 per cent from $84.636 million in the same month of 2021. For comparison, the June and July figures were $120.681 million and $166.759 million, respectively, up 49.65 per cent and 66.74 per cent, from $80.643 million and $100.012 million in the corresponding months of 2021.

Cambodia Chamber of Commerce (CCC) vice-president Lim Heng suggested that these exports were buoyed by preferential tariffs granted by the US, China and European nations along with a host of other large, developed countries, in tandem with the Kingdom’s bilateral and multilateral free trade agreements (FTA).

These advantages have attracted large streams of investment money into export-oriented production and processing in the Kingdom, he told The Post on October 5.

“With Cambodia’s potential in both domestic and overseas markets, I expect exports of these goods to bring in even more money,” he predicted, adding that the US’ move in June to waive tariffs on solar cells and modules – products covered in Chapter 85 – would largely fuel exports of solar energy goods and other items that fall into this classification.

Heng was referring to the declaration of emergency issued by US President Joe Biden on June 6 to impose a 24-month moratorium on new duties on solar cell and module imports from Cambodia, Malaysia, Thailand and Vietnam. The move aims to ensure that the US has access to sufficient supply of these items to meet surging electricity demand.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, said increasing international demand for machinery, electrical equipment and advanced technologies is prompting a growing list of manufacturers to set up shop in the Kingdom.

This, he explained, is because Cambodia is endowed with an abundant labour supply, a favourable investment legal framework, ample market availabilities, and preferential tariff treatment granted by some major trading partners.

Cambodia is emerging as a production hub for machinery as well as electric and electronic equipment, in addition to textile-related items and agricultural goods destined for international markets, Vanak claimed.

He added that a double dose of Covid-19-related fallout and instability across Europe have given rise to modest but significant improvements to production and exports in the Kingdom.

He also pointed out that greater volumes of a wider array of Cambodian merchandise are being sold abroad, creating economic windfall for the Kingdom.

“This embodies Cambodia’s pursuit of export diversification.”

Of note, the January-August Chapter 85 exports were 0.78 per cent higher than the full-year total of $1.081 billion for 2021, which had jumped 41.87 per cent from $762.047 million in 2020, following a 32.66 per cent climb from $574.437 million in 2019, according to the GDCE.

For reference, the full title of Chapter 85 is “electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles”.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • Cambodia's poverty cut in half from 2009 to 2019: World Bank report

    A report published by the World Bank on November 28 states that Cambodia’s national poverty rate fell by almost half between 2009 and 2019, but the Covid-19 pandemic recently reversed some of the poverty reduction progress. Cambodia’s poverty rate dropped from 33.8 to 17.8 per cent over the 10