Cambodia's international trade performance in the first half of 2023 registered $23.69 billion, a decrease of 13 percent from $27.24 billion in the same period last year, according to a report from the General Department of Customs and Excise (GDCE) on Monday.

The GDCE report indicates that while the country's total export value increased slightly by 0.8 percent year-on-year (YoY) to reach $11.46 billion, its total import value decreased substantially by 22.9 percent to reach $12.23 billion. This resulted in a 13 percent decrease in Cambodia's overall international trade, which was valued at $23.69 billion during the January to June period of 2023.

Cambodia's main exported products are garments, textiles, footwear, machinery and electrical equipment, bicycles, leather goods, grains, furniture, rubber, fruits, vegetables, pearls, and toys.

The garment, footwear, and travel goods industry is the largest foreign exchange earner for Cambodia. The sector consists of approximately 1,300 factories and branches, employing about 840,000 workers - most of them female - across the country, according to Agence Kampuchea Press (AKP).

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The GDCE report revealed that Cambodia exported garment, footwear, and travel goods products worth $5.26 billion in the first half of this year, down 18.7 percent from $6.47 billion in the same period last year.

The United States remained the biggest market for Cambodia, importing $4.23 billion worth of products, a YoY decline of 8.9 percent. Vietnam imported $1.42 billion worth of Cambodian products, up 21.7 percent. Other main trade partners are China, Thailand, Japan, and the European Union.

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Economic researcher, Hong Vannak, said that trade has always been volatile. He added that there could be several factors contributing to Cambodia's 13 percent decline in international trade during the first half of the year.

The main reason he potentially attributed to is the ongoing global economic uncertainty due to the Covid-19 pandemic and the Russia-Ukraine war's impact on international trade. The pandemic disrupted supply chains and caused a slowdown in economic activity worldwide, which could also have affected Cambodia's trade performance.

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He said that despite the decline in international trade, Cambodia's total export value increased slightly by 0.8 percent. This could be due to several reasons, including the country's efforts to diversify its export markets and products, as well as its focus on promoting the growth of key industries, such as textiles and footwear.

While the decline in international trade is a cause for concern, Vannak said that the slight increase in export value is a positive sign and suggests that Cambodia is making progress in its efforts to strengthen its economy and trade relations with other countries.

"It will be interesting to see how Cambodia's trade performance evolves in the coming months and years, and what measures the government takes to address any challenges that arise," Vannak told Kiripost.

The researcher said that Cambodia has made significant progress in strengthening trade relationships with other countries, including entering into various trade agreements and partnerships with ASEAN and the world. These agreements can help reduce trade barriers, increase market access, and promote economic growth and development in the country.

He added that by building a reputation as a reliable and high-quality supplier of goods and services, Cambodia can also attract more foreign investment and create new business opportunities in key industries such as manufacturing, agriculture, and tourism.

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