Cambodia's exports declined by 5.7 percent in the first quarter of 2023, with the value of goods exported standing at $5.4 billion compared with $5.8 billion in 2022, according to data released by the General Department of Customs and Excise.
The slump in the value of goods exported from Cambodia between January and March represents a year-on-year decrease of $468 million.
Cambodia's top five trading partners are the United States, Vietnam, Thailand, Japan, and the European Union. The United States is Cambodia's largest export market, receiving $1.8 billion worth of goods, a 15.2 percent decrease from the same period in 2022.
Cambodia's top export products are garments, footwear, and travel goods. The country's main imports are machinery, fuel, and construction materials.
The decrease in exports is attributed to a number of factors, including the global economic slowdown, the ongoing trade war between the United States and China, and the uncertainty surrounding Brexit.
The garment sector has been particularly hard hit by the slowdown, decreasing by 9.6 percent in the first quarter of 2023.
Pen Sovicheat, a spokesman for the Ministry of Commerce, said that despite the barriers to the impact of war, Covid-19, and the economic crisis, Cambodia continues to export goods to international markets. He added that while the market is uncertain, Cambodia can expand due to the demand for order partnerships.
“Trade cannot be sold without an order. It depends on the market demand, which can fluctuate. This is natural for a free market,” he said.
He added that the Ministry is trying to expand international trade volume to boost exports and diversify to more markets and products, even though the value of goods produced is not expensive.
“The government is also working to diversify Cambodia's exports and move away from low-value goods. The government is encouraging businesses to produce high-value goods, such as spare parts for cars,”
He added that Cambodia maintaining old markets and expanding new markets is necessary to diversify goods and switch from low-value goods to high-value goods. The private sector plays an important role in effectively responding to market demand and expanding agreements with the Ministry.
