Logo of Phnom Penh Post newspaper Phnom Penh Post - First firm issued RCEP CO exporting shoes to China

First firm issued RCEP CO exporting shoes to China

Content image - Phnom Penh Post
Workers at Wincrown (Cambodia) Industrial Co Ltd, along National Road 4 in Trapaing Kong commune’s Sangkruoh Cheat village of Kampong Speu province’s Samrong Tong district. FACEBOOK

First firm issued RCEP CO exporting shoes to China

A shoe exporter has become the first company in Cambodia to receive a Certificate of Origin (CO) to export goods to China under the Regional Comprehensive Economic Partnership (RCEP) ratified in October last year.

Ministry of Commerce spokesman Seang Thay told The Post on March 1 that after the free trade agreement came into force in the Kingdom on January 1, Wincrown (Cambodia) Industrial Co Ltd has been the first to be issued a licence to export goods to China. The company has so far exported 6,582 pairs of shoes to China under the agreement.

To facilitate the export timeline, the ministry is allowing exporters to begin exporting goods first before applying for a CO at a later date, according to Thay. Wincrown exported the shoes on February 3 and applied for the CO at the ministry, which issued the certificate on February 22.

He added that “two or three” other companies had inquired about CO applications for the right to produce goods for export under the agreement.

“Applying for a CO from the Ministry of Commerce is not complicated, as it can be done online like any other application,”

he said. “I expect that in the future, there will be more companies applying for the certification.”

Ky Sereyvath, an economics researcher at the Royal Academy of Cambodia, said that applications for COs to export goods were still low because the Kingdom’s production capacity is still small, and has been further strained by supply and labour issues stemming from the Covid-19 crisis.

He added that Cambodia’s production remains limited, especially in the small- and medium-sized enterprise (SME) sector, due to the effects of Covid-19, but called on other signatories to the RCEP to continue making full use of their domestic production facilities and capabilities.

The agreement may be relatively new, but Sereyvath predicts that there will be significantly more companies exporting under the pact in 2023, because the market will be readjusted by that time to reveal the real costs of production.

The commerce ministry says it plans to hold workshops for producers and exporters in the near future to help boost exports under the RCEP, as well as under the Cambodia-China Free Trade Agreement – which also entered into effect on January 1.

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro