Exports of electrical machinery surge 70%
CAMBODIA garnered nearly $3 billion in the first 11 months of 2023 from exports of electrical machinery, equipment and related products. This represents an increase of more than 70% compared to the same period last year, as reported by the General Department of Customs and Excise (GDCE).
Data from the department reveals that between January and November, the country exported Harmonized System (HS2) Chapter 85 goods amounting to $2.94 billion.
The figure marks a 73.2% rise from the $1.7 billion recorded during the same period in 2022. This accounted for 14.4% of the country’s total exports during the period, which were valued at $20.49 billion.
Chhin Ken, president of the Cambodia Digital Tech Association (CDTA), noted on December 19 that the advent of the Fourth Industrial Revolution and a shift in public mindset have spurred the growing demand for electrical machinery and related products.
He said the equipment not only makes work easier but also saves time and money.
He added that given the country’s current situation, the export of these products is expected to show increasingly positive trends, attributing this to the growing interest of both national and international investors in establishing factories in-country for production and export to international markets.
“Currently, Cambodia is attracting more investment projects in the manufacturing of machinery and electrical and electronic equipment. At the same time, the government, through the Ministry of Labor and Vocational Training, is earnestly working to establish its own human resource
training platform to harness new job opportunities in all factories and enterprises,” he explained.
Ken highlighted that the allure for investors stems from factors such as an ample, affordable and skilled labour force, diverse export markets and preferential import tariffs in certain markets. Chea Chandara, president of the Logistics and Supply Chain Business Association in Cambodia (LOSCBA), mentioned that effective organisation of investment law, human resources and transport infrastructure, alongside the strengthening and expansion of export markets, have been crucial in attracting more investors.
He pointed out that the country’s manufacturing and processing capabilities extend beyond the textile sector to include factories and machines for electrical appliances, employing more advanced technology.
“Exports of electrical machinery, equipment and related products are poised to surge as the global economy recovers and Cambodia’s production capacity continues to expand,” he predicted.
He also indicated that an increase in exports and imports would bolster the national economy and enhance activities in the transport sector.
In 2022, the Kingdom achieved $1.998 billion from the export of Chapter 85 products, an 84.8% increase from the $1.081 billion garnered the previous year, as per the GDCE.