PHNOM PENH: Cambodia's exports to Japan exceed US$1 billion in first nine months of 2024
Bilateral trade between Cambodia and Japan in the first nine months of 2024 amounted to nearly $1.6 billion, marking an increase of almost 20% compared to the same period in 2023, with Cambodia's exports to Japan surpassing $1 billion.
From January to September, the total value of Cambodia-Japan trade reached $1.595 billion, a 16.7% increase compared to the $1.367 billion seen in the same period in 2023. Of this, Cambodia exported goods worth $1.057 billion to Japan, an increase of 19.3%, while imports from Japan totalled $537.94 million, an increase of 11.8%, according to the General Department of Customs and Excise (GDCE).
Cambodia enjoyed a trade surplus of $519.13 million, compared to $404.64 million in the same period of 2023.
Cambodia-Japan trade accounted for 3.89% of Cambodia's total international trade – $40.94 billion – during the first three quarters of the year. Japan is Cambodia's fifth-largest international trading partner, following China, the US, Vietnam and Thailand.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on October 25 that the strong relationship between the governments and private sectors of both countries has helped drive the continuous growth of trade, particularly Cambodia's exports.
He added that to further promote exports to Japan, the CCC recently opened a representative office in Japan.
He said the office plays an important role in promoting Cambodian products for export and attracting Japanese investors to establish businesses or factories in Cambodia to serve the Japanese and global markets.
He said, "As Cambodia’s production capacity and the quality of its goods improve to meet international standards, I am confident that exports to Japan and other global destinations will continue to increase."
In addition to mutual trade, Heng noted that many Japanese financiers are currently investing in Cambodia. Both countries are members of the Regional Comprehensive Economic Partnership (RCEP), which is expected to further boost bilateral trade.
According to Heng, key Cambodian exports to Japan include garments, footwear, electronic components and agricultural products, while imports from Japan consist of machinery, automobiles, electronics and some food products.
He said Japanese investments in Cambodia span sectors such as agriculture, industry, real estate and banking.
During Prime Minister Hun Manet’s official visit to Japan in December 2023, where he attended the Asean-Japan Commemorative Summit celebrating the 50th anniversary of Asean-Japan friendship and cooperation, he also participated in the Cambodia Investment Seminar 2023.
On that occasion, he called on the Japanese to increase their investments in Cambodia. Additionally, he encouraged the private sectors of both countries to jointly explore the establishment of a Cambodia-Japan special economic zone (SEZ) in Cambodia.
Hong Vanak, an economist at the Royal Academy of Cambodia, stated that Japan has played a crucial role in helping to end the civil war in Cambodia and has significantly contributed to the country’s economic and social development.
He said Japan is a developed country with a high-income population, so Cambodia must effectively promote itself to attract orders for goods or direct investment.
He added, "I believe Cambodia’s exports to the Japanese market will continue to grow, as Cambodia is becoming a source of some components supplied to factories in Japan."
In 2023, Cambodia-Japan trade totalled $1.799 billion, a 7.2% decrease compared to 2022. Cambodia’s exports amounted to $1.176 billion, a 0.2% increase, while imports from Japan were valued at $623.6 million, a decline of 18.5%, according to the GDCE. - The Phnom Penh Post/ANN
