Garment workers sew clothes for export at a manufacturing facility in Phnom Penh. Post Staff
Cambodia earned more than $4 billion in exports to the EU in the first 11 months of 2024, marking a 20% increase compared to the same period last year. The total trade volume between the two partners is almost $4.9 billion.
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According to a Ministry of Commerce report, from January to November 2024, the total trade value between Cambodia and the European Union amounted to $4.887 billion, an increase of 15.1% compared to the same period in 2023. Of this, exports to the EU totalled $4.032 billion, up 20.45%, while EU imports into Cambodia amounted to $854 million, a decrease of 4.85%.
The report highlighted that Spain, Germany, the Netherlands, France and Belgium were the EU nations with the highest value of imports. Spain imported goods worth $953 million, up 46.99%; Germany imported $828 million, up 11.56%; the Netherlands imported $729 million, up 43.19%; France imported $368 million, up 10.81%; and Belgium imported $334 million, down 16.08%.
The report added that in 2024, to accelerate trade with the EU, the ministry leadership participated in key meetings, including the 12th Subgroup on Trade and Investment (SGTI) under the 12th Cambodia-EU Joint Committee (JC12). As a result, both sides strengthened cooperation in the economy, trade, investment and technical assistance for the trade sector, as well as other fields.
The ministry leadership met with European Parliament members and business representatives to further strengthen economic and trade relations. Business representatives from Poland also participated in discussions to expand the market for Cambodian goods in Poland, noted the report.
Hong Vanak, an economist at the Royal Academy of Cambodia, confirmed to The Post on December 24 that the EU is a major market for Cambodia.
He explained that the EU is a group of economically advanced countries with a high-income population. If Cambodia can respond to their markets, it will boost income. He added that, aside from exporting goods to the EU, European investors are also opening businesses and factories in Cambodia.
“Taking advantage of the European market is something the government and the Kingdom’s private sector are working hard on. Europe is a modern, civilised market, so Cambodia must improve both the quality and quantity of its export products,” he said.
He noted that most exports to the EU are garments, travel bags, shoes, bicycles and agricultural products, especially rice and pepper.
Cambodian Chamber of Commerce vice-president Lim Heng believed that the increase in exports to the EU reflects the high demand for Cambodian products there. Many exports to the EU benefit from tariff exemptions under the EBA system. He added that the EBA system has played a significant role in encouraging investors to establish factories in Cambodia, especially to produce export goods for European markets.
“Cambodia must strengthen itself and not rely solely on the tariff preferences provided by various countries. This is because when Cambodia graduates from the Least Developed Country (LDC) status at the end of 2029, it will lose many of these tariff preferences,” he explained.
On December 19, the UN General Assembly approved resolution A/79/L.49 for Cambodia's graduation from the LDC category. Cambodia will officially transition from LDC status on December 19, 2029, following a five-year preparation period.
Cambodia was classified as an LDC in 1991.
