Cambodia’s exports to Thailand jump nearly 10% in first five months of 2023

The volume of merchandise traded between the two kingdoms in January-May 2023 was to the tune of US$1.705 billion, down 8.78 % year-on-year from $1.869 billion and down 14.79 % half-on-half from US$2.001 billion, as indicated by provisional GDCE figures compiled in “International Merchandise Trade Statistics” bulletins.

At the same time, Cambodia imported US$1.225 billion worth of goods from Thailand, down 14.38 % year-on-year from US$1.430 billion and down 29.64 % half-on-half from US$1.741 billion.

Thailand was Cambodia’s fourth biggest merchandise trading partner for the five-month period – behind mainland China (US$5.076 billion), the US (US$3.292 billion) and Vietnam (US$2.871 billion) – representing 8.838 %, 5.229 % and 12.116 % of the latter’s international trade (US$19.293 billion), exports (US$9.183 billion) and imports (US$10.109 billion), respectively.

Cambodia Chamber of Commerce vice-president Lim Heng told The Post that the majority of Cambodia’s exports to Thailand are either agricultural products or electronic components manufactured near the border.

He claimed that the uptick in Cambodian exports suggests an increase in domestic production capacity as more businesses come to the country and diversify their investments across practically all industries.

The growth in export revenues is not only boosting Cambodia’s economy but also generating jobs for the populace, he asserted, opining that the kingdoms’ shared frontier should lead to record-breaking two-way trade volumes.

“[In addition,] the manufacturing capacity and quality of Cambodian goods have improved as a result of efforts to strengthen investment legislation and conditions,” Heng claimed.

Despite the increase in Cambodia’s exports to its neighbour, Royal Academy of Cambodia economist Hong Vanak pointed out that the trade deficit remains large.

For reference, GDCE figures show that the trade deficit for the January-May period clocked in at US$744.546 million, although this was 24.93 % smaller year-on-year and even 49.71 % less than six months earlier.

He advised Cambodia to pull out all the stops to diversify its product portfolio and raise the bar on quality to rein in imports and prop up exports.

To more effectively compete on the international stage, “Cambodia must endeavour to develop itself by luring in more investment, reducing production costs and strengthening the capacity of the domestic workforce”, he said.

According to the GDCE, the Cambodia-Thailand merchandise trade in 2022 was valued at $4.664 billion, up 14.22 % against 2021.

Cambodian goods exports to and imports from Thailand amounted to US$831.772 million and $3.833 billion, respectively up 34.11 % and up 10.66 % year-on-year, expanding the former’s trade deficit with the latter by 5.54 % to $3.001 billion.

Thailand was Cambodia’s fourth largest merchandise trading partner in 2022, accounting for 8.897 % of the global total of $52.425 billion, compared to the top three: mainland China (US$11.686 billion; 22.291%), the US (US$9.281 billion; 17.704%) and Vietnam (US$6.136 billion; 11.704%).

Hin Pisei 

The Phnom Penh Post

Asia News Network