The economy of Cambodia currently follows an open market system which has seen rapid economic progress in the last decade. Cambodia’s two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas. The service sector is heavily concentrated on trading activities and catering -related services. Recently, Cambodia has reported that oil and natural gas reserves have been found offshore.
Currently, Cambodia’s foreign policy focuses on establishing friendly borders with its neighbors, as well as integrating itself into regional and global trading systems. Cambodia continues to attract investors because of its low wages, plentiful labor, proximity to Asian raw materials, and favorable tax treatment.
Cambodia’s two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas.
Key FDI’s Sectors in 2022
- Textiles and Garment
- E&E Products
- Leather Goods
Cambodia joined the International Organization for Standardization (ISO) in 1995 and is also a member of the ASEAN Consultative Committee on Standards and Quality (ACCSQ). Cambodia ratified the ASEAN Framework Agreement on Mutual Recognition Arrangements. It has signed numerous trade agreements, including the U.S.-Cambodia Trade and Investment Framework Agreement (TIFA) in 2006.
Cambodia will see some positive effects from the Cambodia-China FTA and the Regional Comprehensive Economic Partnership (RCEP, a mega-regional trade deal) in 2022-26. The latter will promote inward investment by reducing regulatory uncertainty and harmonizing standards.
2022 CAMBODIA IN BRIEF
Total population = 16.8 million
GDP = USD 30 billion
GDP per Capita = USD 1,784
GDP Growth = 5.3%
Trade Balance = USD -2.2 billion
Minimum Wage = 27,293 KHR/day
Top 10 Export
Total Value = USD 22.5 billion
COUNTRY/REGION
1. United States of America (43.0%)
2. China (6.0%)
3. Japan (5.7%)
4. Canada (5.4%)
5. Germany (5.3%)
6. United Kingdom (4.3%)
7. Vietnam (3.3%)
8. Belgium (3.1%)
9. Netherlands (2.7%)
10. Spain (2.3%)
PRODUCT
1. Trunks, suit-cases and containers (8.6%)
2. Jerseys, Pullovers, Cardigans (7.6%)
3. Women’s suits and clothing, knitted (6.0%)
4. Semiconductor devices (5.0%)
5. Women’s suits and clothing, not knitted (4.6%)
6. Bicycles and other cycles (4.4%)
7. T-shits, knitted or crocheted (4.1%)
8. Men’s suit and clothing, not knitted (3.3%)
9. Men’s suit and clothing, knitted (3.1%)
10. Footwear (3.1%)
Top 10 Import
Total Value = USD 29.8 billion
COUNTRY/REGION
1. China (34.0%)
2. Vietnam (13.2%)
3. Thailand (12.7%)
4. Singapore (10.7%)
5. Switzerland (4.8%)
6. Other Asia (3.5%)
7. Indonesia (3.0%)
8. Japan (2.6%)
9. Hong Kong (2.6%)
10. Korea (1.8%)
PRODUCT
1. Gold (14.9%)
2. Petroleum oils, other than crude (8.3%)
3. Other knitted or crocheted fabrics (6.3 %)
4. Knitted or crocheted fabrics (3.1%)
5. Other woven fabrics of synthetic staple fibers (3.0%)
6. Motor cars and other motor vehicles for the transport of persons (2.7%)
7. Parts and accessories of vehicles (2.0%)
8. Coals (1.9%)
9. Motor vehicles for the transport of goods (1.4%)
10. Electrical energy (1.1%)