China Cambodia Economic and Trade Cooperation Continuously Deepens
In the first half of this year, Cambodia's import and export trade with China continued to grow, China Cambodia "the Belt and Road" key projects were successfully promoted, and China continued to maintain Cambodia's status as the largest trading partner and source of foreign investment. Deepening economic and trade cooperation between China and Cambodia is continuously promoting Cambodia's economic and social development.
According to the latest statistics from the General Administration of Customs of Cambodia, the trade volume between Cambodia and China reached 6.153 billion US dollars in the first half of this year, an increase of about 3% year-on-year. Among them, Cambodia's exports to China amounted to 713 million US dollars, a year-on-year increase of 16.6%. Imports from China amounted to 5.44 billion US dollars, a year-on-year increase of 1.2%. As Cambodian agricultural products enter the fast lane of export to China, China has become the main export market for Cambodian rice, fresh bananas, mangoes, and longans. In the first half of the year, Cambodia exported 138000 tons of rice to China, accounting for 42% of its total rice exports. At the end of May this year, 12 types of wild aquatic products from Cambodia have completed the export process to China, which will help promote more exports of Cambodian products to China.
The increasingly deepening bilateral cooperation has led to sustained and rapid growth in trade between China and Cambodia. In 2021, the bilateral trade volume between Cambodia and China exceeded the $10 billion mark for the first time. In 2022, with the entry into force of the Regional Comprehensive Economic Partnership Agreement and the China Cambodia Free Trade Agreement, bilateral trade reached $16.02 billion, a year-on-year increase of 17.5%. China has maintained Cambodia's position as the largest trading partner for 11 consecutive years.
According to a recent report released by the Development Council of Cambodia, investment in Cambodia maintained a good trend in the first half of this year. Cambodia has approved 113 new investment projects with a total agreed investment of $1.105 billion, which can create 122000 job opportunities. China remains the largest foreign investor in Cambodia, with an investment of approximately $700 million in the first half of the year, accounting for nearly 65.38% of Cambodia's foreign direct investment. The areas with the highest investment are infrastructure, construction industry, and agricultural product processing.
Since Cambodian Prime Minister Hun Sen visited China in February this year, China and Cambodia have worked together to build a community of common destiny in a new era, build a high-quality "the Belt and Road", and jointly build a "diamond six sided" cooperation framework between China and Cambodia. Practical cooperation between the two countries in various fields has been further deepened. Chinese enterprises have invested more than 10 billion dollars in Cambodia. Chinese investment has played an important role in promoting economic growth in Cambodia in the post epidemic era.
The joint construction of high-quality key projects of the "the Belt and Road" between China and Cambodia has become an important driver of Cambodia's economic growth. Following the official opening of the "Jin Gang Expressway" at the end of last year, the second Phnom Penh to Bayu Expressway also started construction in June this year. Feasibility studies for the Phnom Penh to Siem Reap Expressway and Cambodia High Speed Railway have been launched. The Siem Reap Angkor International Airport project is nearing completion and will officially open for navigation in October. As a demonstration project of the "the Belt and Road" between China and Cambodia, the Xigang Special Economic Zone has successfully become an international industrial park for enterprises from all over the world and an important "engine" for the economic development of Xigang.
The 2023 Cambodia Economic Update report released by the World Bank shows that the official implementation of RCEP has expanded the opportunities for Cambodian products to be exported to regional markets. Driven by the recovery of manufacturing and agricultural exports, tourism, and investment growth, especially the construction of large-scale infrastructure projects such as ports, airports, and roads, Cambodia's economy is steadily moving towards recovery. It is expected that Cambodia's economic growth will reach 5.5% for the whole year of 2023.
