Japan trade nears $1.8B in ‘23 despite slight dip

CAMBODIA’S exports to Japan approached $1.2 billion in 2023, marking a modest rise from the previous year, with total bilateral trade nearing $1.8 billion, as reported by the General Department of Customs and Excise (GDCE).

Exports to Japan in 2023 were valued at $1.17 billion, reflecting a 0.2% increase from 2022. Imports from Japan decreased by 18.5%, amounting to $623.6 million.

Trade volume between the two nations closed in on $1.8 billion in 2023, a 7.2% decline from $1.94 billion year-on-year.

Japan currently ranks as Cambodia’s fifth-largest trading partner, following China, the US, Vietnam and Thailand.

Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on January 23 that geopolitical conflicts and the global economic slowdown have greatly impacted international trade.

He said the country has managed to sustain positive trade dynamics with Japan despite the challenges, buoyed by high demand for certain Cambodian products.

Heng highlighted the role of the Regional Comprehensive Economic Partnership (RCEP), of which Cambodia and Japan are members, in bolstering the country’s export capabilities to Japan.

“The increase in export value is attributed to the collective efforts of both the government and the private sector, aimed at enhancing the quality and variety of Cambodian products to cater to the Japanese market,” he explained.

Heng also noted efforts made by the CCC to attract Japanese investment, including the establishment of a representative office in Sendai, Japan, to promote Cambodian products and attract Japanese companies to source Cambodian-made goods for the Japanese market.

According to the GDCE, Cambodia primarily exports garments, footwear, electrical components and agricultural products to Japan while imports from Japan include machinery, automobiles, electronics and agricultural equipment.

To further entice Japanese investment, Sun Chanthol, deputy prime minister and first vice-chair of the Council for the Development of Cambodia (CDC), held a meeting with a delegation headed by Japanese ambassador to Cambodia Atsushi Ueno on December 25.

The gathering focused on two key projects: expanding the Sihanoukville Autonomous Port (PAS) into a regional hub and preparing for the establishment of the Cambodia-Japan Special Economic Zone.

According to the National Bank of Cambodia (NBC), as of the first quarter of 2023, Japan was the country’s fourth-largest financer, with investments primarily in the financial, construction, hotel and real estate sectors.

Total Japanese investment stood at 11.3 trillion riel ($2.774 billion) for the period, up 11.6% year-on-year, trailing China, South Korea and Singapore.

For reference, bilateral trade between the two nations was valued at $1.948 billion in 2022, a 12.3% increase from 2021. Cambodian exports to Japan were $1.173 billion, up 7.3%, while imports from Japan stood at $774.99 million, rising by 21%, as per the GDCE.