Despite challenges, exports grow by 4 percent

25 Dec 2018 2109 | Business & Trade Fairs

Trade with foreign partners decelerated in 2018, with exports growing by just 4 percent, compared to 19 percent last year.

The year presented a number of challenges that experts feared could slow down export growth, including a national election that many believed would significantly impact the business cycle, and the European Union’s announcement that it is considering annulling the everything-but-arms (EBA) scheme with Cambodia.

Mey Kalyan, a senior advisor to the Supreme National Economic Council, told Khmer Times that the slowdown in export growth is concerning.

He said the deceleration is the result of a number of international events that are undermining investor confidence, including the trade war between China and the United States and EU’s announcement that it is considering cancelling the EBA deal with Cambodia.

“If investors cannot export, they will not invest, which means exports and imports will decrease,” Mr Kalyan said. “We are too reliant on exports and foreign direct investment. This is a weakness.

“Events in the global economy can harm us significantly. We must diversify our production and our export market,” Mr Kalyan added.

In a report issued yesterday, the ministry placed the total value of exported goods in 2018 at $11.2 billion, while imports were valued at $13.7 billion, a 5.7 year-on-year hike.

According to the ministry’s report, since 2009, the annual value of exports has expanded by about 8.4 billion, while imports have grown by more than $10 billion.

Speaking at the Ministry of Commerce’s annual gathering yesterday, Ouk Ty, general director of the Administration and Finance General Directorate, said that to facilitate import and export activity, the ministry has implemented a number of reforms in 2018, including enabling commerce departments in six provinces to issue the D form needed to obtain the certificate of origin.

Commerce officials in Palin, Battambang, Banteay Meanchey, Oddar Meanchey, Tboung Khmum and Ratanakkiri – all located along the border – can now issue the form, which is necessary to ship products abroad.