Cambodia-China FTA a driving force for Cambodia's exports, say Cambodian officials and experts

Image from South China Morning Post.

PHNOM PENH, Jan. 1 (Xinhua): The Cambodia-China Free Trade Agreement (CCFTA), which enters into force on Jan. 1, 2022, is a historic milestone in the bilateral economic ties and it will be a booster for Cambodia's exports, said Cambodian officials and experts.

Cambodian Ministry of Commerce's undersecretary of state and spokesman Penn Sovicheat said the CCFTA, signed on Oct. 12, 2020, aims to boost bilateral trade, services and investment, and promote post-Covid-19 economic recovery.

"The CCFTA marks a significant victory and it will be a driving force for Cambodia's exports," he told Xinhua. "It will bring a lot of benefits."

Sovicheat said as the agreement takes effect, it will bring the proportion of zero-tariff products in the goods traded between Cambodia and China to more than 90 percent for both countries.

"It also contributes to greater economic activity and job creation in Cambodia," he said. "If the investors come and if the activities of trade have been increased, then the workers also get more job opportunities and by the way, the investors will come and the exchange of technology will be taking place."

The spokesman said despite the impact of Covid-19, Cambodia-China trade volume topped 10 billion U.S. dollars in 2021, two years ahead of the target set by the two countries.

"So within 2022 or after the CCFTA enters into force, the number will increase further," he said.

Meanwhile, he said the Belt and Road Initiative also provides impetus for the successful implementation of both the Regional Comprehensive Economic Partnership (RCEP) and the CCFTA.

Sovicheat added that China's 5G technology will play an important role in facilitating trade and economic activities as Cambodia is journeying into the fourth industrial revolution and the digital economy.

Cambodian government chief spokesman Phay Siphan said the bilateral FTA offers opportunities for local and foreign investors to invest or expand businesses in Cambodia in order to export to the world's second largest economy and the world's biggest population of 1.4 billion.

"It will importantly contribute to boosting Cambodia's economy and improving our people's livelihoods, and will ultimately contribute to building a community of shared future for Cambodia and China," he told Xinhua.

Lim Heng, vice-president of the Cambodia Chamber of Commerce, said it would provide tremendous opportunities to Cambodia to increase and diversify its exports.

"It will be a new impetus for Cambodia's trade and investment ties with China in the post-pandemic era," he told Xinhua. "Thanks to our close ties, we hope that the agreement will help Cambodia to become a hub for distributing Chinese products to other Asean and Asian countries in the future."

Chheang Vannarith, president of the Asian Vision Institute in Phnom Penh, said the bilateral FTA will help increase the production network between the two countries.

"Through the FTA, Cambodia will be able to boost further exports, especially agriculture products, to the Chinese market and it will also strengthen the country's value chain," he told Xinhua.

Vannarith added that Cambodia will become a significant market for large companies in China in the industry value chain.

"The pact will attract medium-sized Chinese manufacturers to invest in Cambodia, allowing those companies to supply their products to large-scale companies in China," he said. - Xinhua