Cambodia’s total foreign trade reached $52.425 billion in 2022, marking a 9.19% increase compared to the previous year, according to data from the General Department of Customs and Excise. Commerce Minister Pan Sorasak disclosed the figures on February 2, 2023, during the opening session of the ministry’s annual two-day meeting, where officials assessed 2022 performance and outlined objectives for the coming year.
Exports grew to $22.483 billion, a 16.44% rise from 2021, while imports totaled $29.942 billion, up 4.32%. The trade deficit contracted by 20.60% to $7.459 billion. Sorasak attributed the expansion to comprehensive reforms, enhanced export competitiveness, and an improved business climate.
He noted that Cambodia’s economy and export sector continued to advance despite global challenges. “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,” Sorasak said.
The kingdom’s transition to an endemic approach to Covid-19 in November 2021, followed by the full resumption of socio-economic activities, played a key role in trade recovery. Throughout 2022, authorities removed additional restrictions that had hampered commerce. Sorasak pointed to Cambodia’s high vaccination rate as a driver of 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 explained. This allowed businesses to operate normally and supply chains to rebound.
Free trade agreements significantly boosted export growth. Sorasak credited bilateral and multilateral pacts, including those with China, South Korea, and the Regional Comprehensive Economic Partnership, for the nearly double-digit trade expansion. These accords provided Cambodian goods with preferential access to major markets, driving exports of garments, footwear, and agricultural products. During the meeting, the ministry outlined its 2023 agenda, focusing on sustaining trade growth through deeper reforms, improving the business and investment environment, and prioritizing market diversification.
Officials plan to strengthen implementation of existing free trade agreements while seeking new trade partners. Sorasak emphasized the need to maintain export competitiveness through “in-depth reforms in all areas.” The government acknowledged ongoing risks, including high inflation, energy prices, and supply chain disruptions from the war in Ukraine.
Cambodia’s 2023 trade performance will depend on its ability to navigate these global headwinds. The 9.19% growth in 2022 demonstrated the country’s resilience, with an early reopening and free trade agreements helping to expand exports and reduce the trade deficit during a turbulent year.
