Logo of Phnom Penh Post newspaper Phnom Penh Post - Exports to US fall 6% in first quarter

Exports to US fall 6% in first quarter

Exports to US fall 6% in first quarter

Cambodian exports to the US, one of the Kingdom’s biggest export destinations, fell 6 per cent in the first quarter, as the Cambodia continues to diversify its export destinations beyond the EU and US.

According to data from the US Department of Commerce, Cambodia exported goods worth $725 million during the first three months of 2015, compared with $771 million in the same period last year. The data did not specify the details of the goods that have been exported to the US, but the past export reports have shown that shipments were largely garment products.

Kaing Monika, deputy secretary general of the Garment Manufacturers Association in Cambodia (GMAC), said the drop in exports to the US was not due US market problems.

While exports to the US dropped, Monika said, the EU’s market share has continued to grow and is currently more than 40 per cent of garment exports from the Kingdom. In contrast, the US share has dropped from 75 per cent five years ago to just below 30 per cent.

“[Exports to] Europe is increasing and now seems to have overtaken the US [in market share],” said Monika. “We are now having a stable production rather than strong growth. And if this situation continues, we could expect better exports.”

Although data showed a slight dip earlier this year, the IMF’s forecast for Asia in April sees Cambodia registering strong growth this year due to the impact of the US economic recovery, helping increase the country’s exports to the US.

Markus Rodlauer, deputy director of the IMF’s Asia-Pacific region, said “The rebound of the US economy is a positive evolution as it will allow the country to export more goods to help support the growth as well.”

Mey Kalyan, senior adviser to the Supreme National Economic Council, said reducing Cambodia’s dependence on the US market and increasing exports to other regions would reduce its risk to a possible downturn in the US.

He added that diversifying to the EU not the opnly solution and that exporters should be looking at opportunities to expand into other countries, especially in Asia.

“We want to have a diversify from garment production and export to markets beyond the existing ones, such as Japan and Thailand,” Kalyan added

MOST VIEWED

  • Government hits back at threats to pull EBA, suspend UN seat

    The spokesman for the ruling Cambodian People’s Party (CPP) has said the government is in no way concerned after the European Parliament gave it three months to reverse what it called the “systematic repression of the political opposition”. Ignoring the ultimatum could mean facing

  • Chinese influx pushing locals, Westerners out of Preah Sihanouk

    Some within the Kingdom’s tourism industry have speculated that the recent influx of Chinese visitors may hinder domestic tourism as the price of accommodations in the coastal city of Sihanoukville continues to rise. Preah Sihanouk province, which has become a hotbed for Chinese investment

  • Sar Kheng: Sokha requested security

    Interior Minister Sar Kheng on Sunday revealed the story behind the transfer of former opposition party leader Kem Sokha from Trapaing Phlong prison in Tbong Khmum province to his house in the capital. Speaking at the ruling Cambodian People’s Party (CPP) headquarters in Prey

  • Chinese living in Kingdom more than doubles since ’17

    The number of Chinese nationals living in Cambodia this year has increased to more than 210,000. The figure rose from last year’s 100,000, the newly appointed Secretary of State Sok Phal confirmed yesterday. He said: “Of the 210,000, more than 78,000 are living in Preah Sihanouk [province], but