The Ministry of Commerce has set up five Cambodian private business centers in China to boost the kingdom’s exports to East Asian giants and make the most of bilateral free trade agreements (FTAs) between the two countries. plan to heard.
In his closing remarks on January 31, Commerce Minister Pan Sorasak said that the Cambodia Private Commercial Center (CPCC) in Atsugi, Kanagawa Prefecture, which opened in June, is part of the government’s market integration and diversification strategy. and a planned facility in China.
“The ministry issued a report on the field survey related to the establishment of five private business centers in Cambodia (Changchun, Harbin, Nanjing, Taiyuan and Zhengzhou) to further promote and facilitate the sale of Cambodian products in the Chinese market. I’m preparing,” he said.
According to customs data, Cambodia’s international merchandise trade volume was $52.425 billion last year, up 9.2% from 2021. Of that, the kingdom exported her $22.483 billion and imported $29.942 billion, a jump of 16.4% year-on-year. 4.3%.
Similarly, bilateral trade between Cambodia and China will reach $11.686 billion in 2022, an increase of 4.4% on an annual basis. Of that, the kingdom’s exports reached her $1.241 billion, down 17.9%, while imports reached her $10.446 billion. , increased by 7.9%. This brought the trade deficit with the East Asian country to $9.25 billion.
Mr Lim Heng, Vice Chairman of the Cambodian Chamber of Commerce and Industry (CCC), said overseas business centers are very beneficial to the Cambodian economy, whether they are managed by the government, the private sector or a combination of them. I think.
He explained to the Post that these facilities can be used as venues for meetings and promotion of Cambodian products, and can provide valuable information on investment opportunities in the Kingdom.
Given the size and population of the East Asian country, as well as the presence of the Cambodia-China FTA, which came into effect on 1 January 2022 and continues to attract more Chinese investors, these centers are It is really necessary,” he argued, pointing out that CCC has representative offices in Japan and Canada, where Cambodian goods are developing markets.
Emphasizing the value of face-to-face communication, Hong Vanak, Director of International Economics at the Royal Academy of Cambodia, said that even in the world of digital solutions, a facility with a brick-and-mortar store is “essential” and Cambodia to China. could be “very profitable” for exporters of
“Since China has a large population and a large market, if the quality of Cambodian goods meets China’s requirements, exports will skyrocket, and a bilateral FTA between Cambodia and China will allow the import of goods between the two countries. and export conditions will be relaxed,” he said.
According to the National Bank of Cambodia (NBC), between the promulgation of the old Investment Law on August 5, 1994 and December 31, 2021, Cambodia has accumulated 168.8 trillion riel in foreign direct investment (FDI), or 41 billion riel. recorded dollars. ), an increase of 11.2% from about 152 trillion Riels recorded by the end of 2020.
Greater China, which includes mainland China, Hong Kong, Macau and Taiwan, accounted for the majority of $18 billion (43.9%), followed by South Korea, Singapore, Vietnam, Japan and Malaysia.
The Ministry of Economy and Finance forecast in late January that Cambodia’s economic growth will accelerate to 5.6% in 2023 from an estimated 5.2% in 2022.
And in a December 7 statement, the World Bank forecast Cambodia’s economic growth to be 4.8% in 2022 and 5.2% in 2023.
