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Bilateral free trade agreement between Cambodia and South Korea expected to boost trade and investment flows
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Prime Minister Hun Sen says Cambodia is looking at signing other FTAs with other countries
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Trade between the two countries was valued at US$818 million in the first nine months of 2022
Bilateral trade betweeb Phnom Penh and Seoul is expected to receive a big boost when a Cambodia-Korea free trade agreement (FTA) signed last year takes effect starting December 1 this year, Cambodian Prime Minister Hun Sen said on November 2.
The agreement, which was signed via video by Cambodian Minister of Commerce Pan Sorasak and South Korean Minister of Commerce Yeo Han-Koo on October 26, 2021, was ratified by the Nationalk Assembly in Seoul on September 27, 2022.
The agreement is expected to boost bilateral trade and investment flows when it comes into force next month.
Hun Sen made the announcement at the opening of a high-level forum on the 10th Anniversary of the Regional Comprehensive Economic Partnership (RCEP) Agreement in the Cambodian capital Phnom Penh.
He said that Cambodia is also looking at the possibility of sealing similar agreements with other partner countries, according to news reports.
The RCEP event was used for the official book launching of “Framework for Regional Integration,” a book published by the Economic Research Institute for ASEAN and East Asia (ERIA).
The FTA with Korea is Cambodia’s second such accord after the Kingdom signed one on October 12, 2020 with China that took effect on January 1, 2022, the Khmer Times reported. The agreement underlines the role of emerging economies in the Association of Southeast Asian Nations (ASEAN) new, attractive trading partners.
The news report said the agreement is expected to be a major boost to trade and investment flows that will mutually benefit Cambodia and South Korea, in particular, helping them accelerate economic recovery following COVID-19 pandemic’s severe impact.
Hun Sen said the FTA would help promote long-term partnerships and strengthen economic partnerships, particularly market access of Cambodian exports to the Korean market.
Cambodia mainly exports footwear and other apparel, travel goods, beverages, electrical and electronic components, rubber, pharmaceuticals, and agricultural products to Korea. In return, Korean exports vehicles, electronics, kitchen appliances, beverages, pharmaceuticals and plastic products to Cambodia.
In January-September 2022, bilateral trade between Cambodia and Korea was valued at US$818 million, up 13.8% from the same period last year, the Khmer Times reported, citing data from Korea International Trade Association (KITA).
For the same period, Cambodia exported $301 million worth of goods to Korea, up 19.6% year-on-year.
Pen Sovicheat, undersecretary of state and spokesman for the Ministry of Commerce, confirmed that the Cambodia-Korea FTA will help increase the value of Cambodian goods on the world market, making it easier for Cambodia to export to other countries in the future.
