Business people in Cambodia highlight benefits from RCEP, CCFTA

PHNOM PENH (Xinhua): The Regional Comprehensive Economic Partnership (RCEP) trade deal and the Cambodia-China Free Trade Agreement (CCFTA) have provided a lot of benefits to both business people and consumers, business people in Cambodia have said.

Both the RCEP and the CCFTA entered into force on Jan 1, 2022.

The RCEP comprises 15 Asia-Pacific countries including 10 Asean (Association of Southeast Asian Nations) member countries -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.

Yiv Phanna, chief executive officer of Yadea Cambodia, said the two FTAs have allowed his company to import electric two-wheeled vehicles from China into Cambodia with preferential tariffs.

"The RCEP and the CCFTA have provided a lot of benefits to both merchants and users in Cambodia," he told Xinhua. "Under these free trade agreements, we have imported Yadea electric bikes from China to sell in Cambodia at a competitive price."

Phanna said he believes the two FTAs are catalysts for long-term trade and investment growth between Cambodia and China.

Jack Lee, chief executive officer of online market Smile Shop in Cambodia, said that under the two trade pacts, Cambodia and China could sell products at a much cheaper price to each other.

"A lot of products Cambodia can export to China with free tax and a lot of good products made in China can be exported to Cambodia with low customs tariff," he told Xinhua.

"The RCEP and the CCFTA have brought more and more benefits to both countries."

Paul Kim, managing director of Mayura, an online marketplace platform for cosmetic and health products, said both free trade deals have further promoted the flows of goods and services as well as investments between the two countries and among other RCEP member countries.

"With preferential tariff rates under these agreements, people in all member countries will enjoy buying products and other necessities at a competitive price," he told Xinhua.

Lim Heng, vice-president of the Cambodia Chamber of Commerce, said the two FTAs have provided tremendous opportunities to Cambodia to increase and diversify its exports.

"Both trade pacts have given a boost to Cambodia's trade and investment ties with China and with other RCEP member countries in the post-pandemic era," he said.

"We hope these agreements will help Cambodia become a hub of distributing Chinese products to other Asean member countries in the future," Heng said.