Cambodia’s foreign trade reached $52.425 billion in 2022, a 9.19% year-over-year increase, according to the General Department of Customs and Excise (GDCE). Minister of Commerce Pan Sorasak announced the figures on February 2, 2023, during the first day of the ministry’s two-day annual meeting. Officials reviewed 2022 achievements and set goals for 2023. The growth was driven by in-depth reforms, improved export competitiveness, and a more favorable business environment, Sorasak said.
Imports and exports post mixed results
The kingdom’s imports totaled $29.942 billion in 2022, up 4.32% from the previous year. Exports reached $22.483 billion, a 16.44% increase. The trade deficit shrank by 20.60% to $7.459 billion. The GDCE provided the data.
Sorasak noted that Cambodia’s economy and exports continued to grow despite global headwinds. “Despite the world’s struggles with Covid-19, fuel, oil, and food crises as well as growing prices and the effects of the Ukraine crisis, Cambodia’s products exports and the country’s overall economy continued to develop significantly last year,” he said.
Covid management and reopening boosted trade
Cambodia shifted to an endemic approach to Covid-19 in November 2021. The government allowed the full resumption of socio-economic activity at that time. Throughout 2022, it removed additional restrictions that had hindered trade and commerce.
Sorasak attributed the high vaccination rate to this policy shift. “As a result of the Kingdom’s among-the-highest in the region coronavirus vaccination rates, the government was forced to adopt an endemic approach to Covid management,” he said. The move permitted businesses to operate normally and supply chains to recover.
Free trade agreements drive export growth
Bilateral and multilateral free trade agreements played a important role in the trade expansion. Sorasak credited these accords for the nearly double-digit growth. “Sorasak credited bilateral and multilateral free trade agreements (FTA) as well as an increase in exports driven by market diversification and preferential trade accords upheld by various jurisdictions,” the ministry reported.
Cambodia has FTAs with China, South Korea, and other partners. It also benefits from the Regional Comprehensive Economic Partnership (RCEP). These agreements give Cambodian goods preferential access to major markets. Exports of garments, footwear, and agricultural products have grown as a result.
2023 goals focus on sustainability and competitiveness
During the meeting, the ministry laid out its plans for 2023. Officials aim to sustain trade growth by deepening reforms. They will work to improve the business and investment environment further. Market diversification remains a priority.
The ministry also plans to strengthen implementation of existing FTAs. It will seek new trade partners. Sorasak emphasized the need to maintain export competitiveness. “In-depth reforms in all areas” will continue, he said.
The government expects global economic conditions to remain challenging. High inflation and energy prices persist. The war in Ukraine continues to disrupt supply chains. Cambodia’s trade performance in 2023 will depend on how well it navigates these risks.
The 9.19% trade growth in 2022 shows Cambodia’s resilience. The country managed to expand exports and narrow its trade deficit during a turbulent year. Its high vaccination rate allowed an early reopening. Free trade agreements opened new markets. The ministry’s 2023 plans aim to build on these gains. Whether Cambodia can sustain this momentum will depend on global demand and its ability to stay competitive.
