Cambodia investment Revie
The Canadian Chamber of Commerce in Cambodia has welcomed Canada’s decision to establish an embassy in Phnom Penh, a move expected to significantly strengthen diplomatic ties and boost trade between the two nations.
The embassy’s announcement opening also aligns with Team Canada’s Trade Mission to Cambodia in 2025, which is anticipated to pave the way for greater economic cooperation, increased foreign direct investment (FDI), and enhanced export opportunities for Cambodian products in the Canadian market.
Growing Bilateral Trade and Fluctuating Figures
Cambodia’s trade relations with Canada have seen significant growth in recent years, with Cambodian exports to Canada consistently surpassing imports from the North American country. In 2021, Cambodia imported goods from Canada worth $39 million while exporting $954 million in products, highlighting the growing importance of Cambodia as a key export partner for Canada. The trend continued in 2022, with Cambodian exports rising to $1.12 billion, while imports from Canada dropped to $33 million.
However, in 2023, there was a notable shift, with imports from Canada rising sharply to $70 million, while exports from Cambodia dipped slightly to $869 million. While this fluctuation reflects the changing dynamics of the trade relationship, Cambodia remains a crucial partner for Canada, particularly due to the significant volume of exports, which include textiles and agricultural goods.
Cambodia benefits from Canada’s Market Access Initiative for least-developed countries, which provides quota-free and duty-free access to the Canadian market. This initiative has been instrumental in enabling Cambodian products to enter the Canadian market with fewer barriers, contributing to the robust growth in exports. “Canada is one of Cambodia’s top export destinations,” Penn Sovicheat, spokesperson for the Ministry of Commerce, has stated, further emphasizing the importance of this trade relationship for Cambodia’s economy.
Embassy Opening to Spur Trade and Investment
The Canadian Chamber of Commerce has expressed strong support for the upcoming establishment of an official embassy in Phnom Penh. Emily Yu, a President of the chamber, highlighted the embassy’s role in fostering stronger economic ties and noted that its opening comes at a critical time for Canadian businesses looking to enter Southeast Asian markets. “We at the Canadian Chamber of Commerce are thrilled to hear about Canada’s decision to open an embassy in Phnom Penh. This strategic move will strengthen our diplomatic and economic ties with Cambodia, particularly well-timed for Team Canada’s Trade Mission to Cambodia in 2025,” Yu told Cambodia Investment Review.
She further emphasized the significant opportunities that lie ahead for Canadian businesses: “For Canada, as a country of immigrants, many of whom hail from Asia, it is imperative it seeks to diversify trade and increase cultural dialogue with Cambodia, particularly on the wave of astounding growth in the South Pacific region over the past decade.”
Canadian Prime Minister Justin Trudeau has also voiced optimism about the embassy’s role in strengthening bilateral ties. He noted that a Canadian trade delegation will be sent to Cambodia in the near future to engage with Cambodia’s Ministry of Commerce and other relevant bodies to enhance bilateral trade relations.
Cambodian Prime Minister Hun Manet welcomed the announcement, expressing gratitude for Canada’s contributions to Cambodia’s socio-economic development. He noted that Canada is Cambodia’s seventh-largest bilateral trade partner and praised Canada for its role in creating jobs and providing professional development opportunities for Cambodian youth.
