Cambodia exported $755.34 million worth of electrical equipment and electronic components to international markets in 2020, up 31.49 per cent compared to $574.44 million in 2019, according to the Ministry of Commerce.
Electrical equipment and electronic components accounted for 4.38 per cent of the country’s total exports in 2020, which were to the tune of $17.21537 billion.
Even with Cambodia and the rest of the world put in a precarious situation by the Covid-19 outbreak, the Kingdom’s total exports remained in positive territory last year, the ministry said in a March 29 statement.
The ministry’s annual report revealed that total export value had risen by 16.72 per cent from $14.74874 billion in 2019.
Cambodia Chamber of Commerce vice-president Lim Heng told The Post on April 5 that exports of electrical equipment and electronic components enjoyed a surge last year on the back of ongoing Sino-US trade disputes which have prompted industries to relocate from China to the Kingdom.
Cambodia boasts business-friendly investment laws, an abundance of young workers, preferential tariffs on exports to many countries and an overall more favourable environment for investment and exports, he claimed.
“This is the main reason for the uninterrupted growth in exports of electrical equipment and electronic components from Cambodia to international markets, complemented by a rising trend of investment in factories,” Heng said, noting the flurry of new projects approved by the Council for the Development of Cambodia (CDC).
CDC gave the nod to 10 such factories in the first quarter of this year, which the council notes will churn out items such as light bulbs, lamp parts, solar panels and electric grills.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, chalked up the jump in these exports as another successful case of economic diversification that would bring in new jobs, promote the acquisition of new skills for domestic workers and foster development of the national economy.
“If production in the sector increases further down the line and the companies coming in to invest are all internationally renowned ones, I expect exports from the industry to thrive and expand going forward,” he said, noting that special economic zones were absorbing droves of new electrical equipment and electronic components plants.