Promoting GFT group exports, Cambodia "bets" on RCEP and bilateral FTAs

Cambodia is pinning its hopes on the Regional Comprehensive Economic Partnership (RCEP) and bilateral Free Trade Agreements (FTAs) to boost garment, footwear and tourism (GFT) exports.

Lao động ở nhà máy giày ở thủ đô Phnom Penh, Campuchia. (Nguồn: Khmer Times)

Footwear is one of Cambodia's main export items. (Source: Khmer Times)

Cambodia Footwear Association President Ly Khun Thai told a local television channel that the Southeast Asian country has seen a significant increase in footwear exports to China and South Korea since the RCEP and Cambodia’s bilateral FTAs with China and South Korea came into effect last year.

“There are many countries participating in RCEP. With preferential tariffs, we hope to receive more orders for our GFT products from RCEP member countries,” he said.

The main current markets for Cambodia's GFT goods are Europe, the US and Canada.

Ly Khun Thai's comments came after the country saw exports of GFT products fall by nearly a fifth in the first half of 2023.

Cambodia exported GFT goods worth $5.26 billion from January to June this year, down 18.7 percent from $6.47 billion in the same period last year, according to a report from the General Department of Customs and Excise.

GFT exports are Cambodia’s largest source of foreign exchange. The sector comprises about 1,100 factories and branches, employing about 750,000 workers, mostly women.

Speaking to Xinhua on July 16, Cambodian Deputy Minister and Ministry of Commerce Spokesperson Penn Sovicheat said that RCEP and Cambodia's bilateral FTAs with China and South Korea are key factors contributing to boosting the country's exports.

“These FTAs have and will continue to boost our export growth in the long term,” he affirmed.

Sovicheat reiterated that these agreements will help Cambodia graduate from least developed country status by 2027, achieve its ambitious goals of becoming an upper middle-income country by 2030 and a high-income country by 2050.

RCEP includes 15 Asia-Pacific countries, including 10 ASEAN member countries and 5 trading partners: China, Japan, South Korea, Australia and New Zealand.

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