It turns out many people trust Cambodia's reputation for manufacturing various travel goods as the latest data revealed that exports within the January to May period surged by over 15 percent. A large portion of the hike is attributed to travel goods orders.
According to the Khmer Times, the Ministry of Economy and Finance revealed that Cambodian exports reached $5.3 billion. Imports also hiked by 21.5 to reach $8.2 billion. The U.S. is known for importing woven apparel and footwear from the Asian country.
The ministry's report noted that the boom in Cambodian exports was propelled by solid travel goods demand from the United States. While U.S. demand helped bolster exports in the sector, diversification also helped in the change that Cambodian companies are experiencing.
"Accelerating business models, economic diversification, and the expansion of target markets are enabling Cambodia to generate growth and alleviate pressure," the report pointed out.
It appears that Cambodian providers are starting to transition to diversified options in terms of exporting. Just recently, the ministry lodged a petition to the White House to allow for a more extensive scheme on footwear and fabrics.
Vice President of the Cambodia Chamber of Commerce, Lim Heng, stressed that diversifying the country's products is the key towards gaining a stronger foothold in the global stage.
Lim further explained that diversification will help strengthen Cambodia's economy despite global headwinds such as the China-U.S. trade war and rising tensions between Japan and South Korea.
While the travel goods department seems to be doing great, the rice export sector is still testing the waters after the European Union (EU) imposed tariffs on Cambodian rice products.
As part of the government's efforts in curbing the impact of reduced EU rice exports, Cambodia increased its exports to China. In the first half of this year, rice exports to its co-Asian trading partner saw a hike of 66 percent, the latest data revealed.
China was Cambodia's top rice buyer during the said period, as confirmed by the Secretariat of One Window Service for Rice Export. But, it's not just Chinese buyers who have been helping the Cambodian rice sector.
Cambodian Commerce Minister Pan Sorasak said over the weekend that to mark the two countries' six decades of diplomatic relations, Indonesia is set to import rice from its Asian counterpart sometime soon.
Local industry experts believe that Indonesian rice markets pose a massive opportunity for Cambodian farmers to grab. The two sides are currently discussing the amount of rice to be shipped. Most analysts are expecting shipments to kick off before the year ends.
