Cambodia's Trade with ASEAN Markets Surges

Strategic Insights -

Cambodia's exports to ASEAN markets showed a remarkable 10 percent increase in the first five months of 2025, reaching $2.7 billion, driven by steady demand for agricultural products, textiles, and food items. Total trade between Cambodia and ASEAN reached $7.2 billion, a 5.5 percent year-on-year increase. The rise in exports is attributed to improved trade facilitation under ASEAN agreements and better connectivity.

Key Takeaways:

  • The Ministry of Commerce's latest trade report shows that Cambodia's exports to ASEAN markets rose 10 percent in the first five months of 2025, reaching $2.7 billion.
  • Vietnam, Thailand, Indonesia, Singapore, and Malaysia were listed as Cambodia's top five export destinations within the bloc.
  • Total trade between Cambodia and ASEAN reached $7.2 billion, an increase of 5.5 percent year-on-year.
  • Imports from ASEAN stood at $4.5 billion, up 3 percent over the same period.
  • Trade with ASEAN made up 28.2 percent of the Kingdom's overall trade volume during the five-month period.
  • Thong Mengdavid, lecturer at the Institute for International Studies and Public Policy (IISPP) at the Royal University of Phnom Penh, attributed the growth to improved trade facilitation under ASEAN agreements, better connectivity, and growing private sector engagement.
  • Cambodia already benefits from the Regional Comprehensive Economic Partnership (RCEP) and a bilateral FTA with China, which has opened doors to ASEAN markets for Cambodian garments, agricultural products, and light manufactured goods.
  • However, Mengdavid cautioned that deeper challenges, such as low value-added production, weak logistics, poor infrastructure, and limited institutional support for SMEs, continue to limit Cambodia's full potential.
  • To address these challenges, Cambodia needs to invest in skill development, institutional reforms, and digitalising logistics and customs systems to strengthen its export competitiveness.

Statistics:

  • Cambodia's exports to ASEAN markets: $2.7 billion (10% increase)
  • Total trade between Cambodia and ASEAN: $7.2 billion (5.5% year-on-year increase)
  • Imports from ASEAN: $4.5 billion (3% increase)
  • Trade with ASEAN as a percentage of overall trade volume: 28.2%
  • Recent recognition by the Financial Times: listing on the FDI Intelligence Standouts Watchlist for 2024
  • Cambodia's investment attracted in 2024: $6.9 billion (across 414 projects, 40% increase from 2023)
  • Total trade volume in 2024: $54.74 billion (up from $46.82 billion in the previous year)

Sources:

  • Ministry of Commerce's latest trade report
  • Thong Mengdavid, lecturer at the Institute for International Studies and Public Policy (IISPP) at the Royal University of Phnom Penh
  • Khmer Times
  • Financial Times
  • Prime Minister Hun Manet's address at the Cambodia-ASEAN Business Summit 2025