Latest news with #CouncilfortheDevelopmentofCambodia
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
Cambodia expects to attract over 500 projects with reduced US tariff
Cambodia expects to attract over 500 investment projects, potentially generating over 300,000 jobs annually, with the United States recently reducing the reciprocal tariff rate on the country's exports from 49 per cent to 19 per cent. 'The new 19-per cent import duty allows Cambodian products to compete fairly with regional countries. It is also expected to attract more foreign direct investment (FDI), helping the Kingdom advance its economic growth ambitions,' Sun Chanthol, Deputy Prime Minister and first vice chairman of the Council for the Development of Cambodia (CDC), told a press conference. Cambodia expects to attract over 500 investment projects, potentially generating over 300,000 jobs annually, with the United States recently reducing the reciprocal tariff rate on the country's exports from 49 per cent to 19 per cent. Deputy Prime Minister Sun Chanthol urged all migrant workers to return home and contribute to national economic development. He urged all migrant workers to return home and contribute to national economic development. Working abroad offers limited benefit to Cambodia's economy, while domestic employment plays a vital role in driving growth, reducing poverty and strengthening the Kingdom's long-term development trajectory, he was cited as saying by domestic media outlets. The US decision followed phone calls between Prime Minister Hun Manet and President Donald Trump on July 26 and 28, during which he requested tariff relief to improve the living standards of the Cambodian people. Fibre2Fashion News Desk (DS)
Time of India
01-08-2025
- Business
- Time of India
Cambodia to buy Boeing planes as Trump slashes US import tariffs
Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia (CDC) Sun Chanthol has announced that Cambodia has purchased 10 Boeing aircraft from the United States, coinciding with a significant shift in trade policy between the two nations. The announcement was made today during a press conference highlighting recent positive developments for Cambodia. According to Chanthol, Cambodia has removed all tariffs on US goods, while the United States has reduced its import tariff on Cambodian products to 19%. Show more Show less
The Star
09-07-2025
- Business
- The Star
Cambodia urges investors to remain calm, trust govt, as US tariff negotiations ongoing
PHNOM PENH: A senior Cambodian government official has called on all investors to remain patient and allow working groups to continue reciprocal tariff negotiations with the United States. His call followed the lowering of proposed US tariffs on Cambodian imports from 49% to 36%. The latest tariffs, announced by the administration of President Donald Trump, are set to take effect on Aug 1. Sun Chanthol, first vice-president of the Council for the Development of Cambodia (CDC), made the appeal during a July 8 press conference, held at the CDC headquarters. He urged all factory/business owners and investors in Cambodia to remain calm and trust the Royal Government as it seeks further solutions regarding the newly adjusted US tariffs. 'I want to take this opportunity to call on companies with factories in Cambodia to stay calm. The government of Cambodia has all the capabilities to protect employers, employees and our national interests,' he said. According to Chanthol, the 36% tariff rate will officially take effect on Aug 1, unless further negotiations with the US are held. However, Cambodia is already prepared, whether to negotiate directly in the US or online, to try to further reduce the rate below 36% and expand trade opportunities between the two countries. According to the General Department of Customs and Excise (GDCE), in the first five months of 2025, Cambodia-US trade reached $4.48 billion, a 27% increase, with exports from Cambodia valued at $4.35 billion (up 27%) and US imports at $120 million (up 25.6%). In 2024, Cambodia-US trade totalled $10.18 billion, up 11.2%, with Cambodian exports to the US at $9.9 billion (up 11.4%) and US imports at $264.14 million (up 2.7%). Chanthol noted that despite rising tariffs from the US government against many countries globally, Cambodia continues to attract growing foreign investment. From January to July 4, the CDC approved 396 investment projects with a total value of approximately $6 billion, creating about 271,000 jobs. This figure is close to the 414 investment projects approved in 2024. He emphasised that Cambodia still has opportunities to attract more direct investment. Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post on July 9 that the US government's decision to reduce reciprocal tariffs from 49% to 36% represents a major diplomatic success for Cambodia. He noted that while most other countries saw only minor improvements or even increases in tariffs, Cambodia achieved a significant reduction. 'This is a great achievement for Cambodia. While many Asian countries face similar or even higher tariffs, the US tariff increases will make goods in the US market more expensive. This could impact American consumers and potentially open more room for further negotiations,' he said. 'Although the tariff hikes will impact Cambodia, the country also has strong export markets in Europe, the UK, the Middle East and RCEP countries,' he added. On Vietnam's 20% tariff rate, Heng acknowledged that the lower rate benefits Vietnam, but he believes it will not significantly harm Cambodia's export sector, especially in garments and textiles. In fact, in the past two-three years, some Vietnamese factories have relocated to Cambodia due to rising labour costs in Vietnam. At the same time, Vietnam's industry is shifting from textiles to mid-tier industries like electronics and component manufacturing. 'Therefore, Vietnam's lower tariff rate won't have a major negative impact on Cambodia's exports (especially garments) to the US,' he said. With extensive experience in agricultural investment, Heng added that Vietnam's low tariffs could actually boost demand for raw materials and semi-finished products from Cambodia, particularly agricultural goods, which Vietnamese companies could process further for re-export to the US. Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), said that despite the recent success in negotiating a tariff cut with the US, the Cambodian government remains committed to further discussions to gain additional benefits. 'Cambodia still has around three weeks left to negotiate further with the US — this could include easing import conditions, increasing purchase orders or facilitating American businesses wishing to operate in Cambodia — before the 36% tariff officially takes effect on August 1,' he noted. - The Phnom Penh Post/ANN
The Diplomat
04-07-2025
- Business
- The Diplomat
Cambodia, US Nearing Agreement on Trade, Phnom Penh Says
Among the ASEAN nations, Cambodia is the most potentially exposed to any sudden shift in U.S. trade policy. Cambodia and the United States have agreed to a framework for a trade agreement, the Cambodian government announced today, just days ahead of the Trump administration's July 9 tariff deadline. The announcement came after a virtual meeting between Deputy Prime Minister Sun Chanthol and Sarah Ellerman, the assistant U.S. trade representative for Southeast Asia and the Pacific. 'In this meeting, both sides reviewed and agreed on the draft Joint Statement on Framework for United States-Cambodia Agreement on Reciprocal Trade, which will be released to the public soon,' the government said in a statement. It added that Prime Minister Hun Manet's government 'will continue to cooperate closely with the United States of America to achieve a mutually beneficial trade and investment relationship.' During President Donald Trump's 'liberation day' tariff announcement on April 2, Cambodia was hit with a 49 percent tariff – the highest of any nation in Southeast Asia. Since then, the Council for the Development of Cambodia (CDC) and the Ministry of Commerce have held three rounds of negotiations with U.S. trade officials, the latest of which took place on June 25. However, unlike the cases of Vietnam and Indonesia, the reporting on the trade talks between Phnom Penh and Washington has been vague as to what has been discussed during the negotiations or what the impending framework agreement will involve. Chanthol said recently that Cambodia had submitted a comprehensive set of documents to the U.S. trade authorities. As the Khmer Times reported, 'these include proposed tariff rates, export compliance conditions, and a framework for how U.S. goods would be taxed upon entering the Kingdom.' While Cambodia's trade negotiations with the U.S. have not received as much attention as its neighbors Vietnam, Indonesia, and Thailand, the potential political impacts of the tariff are perhaps greater here than anywhere else in Southeast Asia. Of all the nations that rely on the U.S. market, Cambodia is the most exposed to any potential change in U.S. trading conditions. The country exported $9.91 billion worth of goods to the U.S., according to Cambodian government figures. This made up around 37 percent of its total exports, and a whopping 24.8 percent of its gross domestic product for 2024. (The U.S. Trade Representative's Office puts the figure for Cambodian exports higher, at $12.7 billion, as compared to $321.6 million in U.S. exports to Cambodia.) This trend has continued in 2025, with Cambodian exports totaling $4.35 billion from January to May – a 27 percent increase compared to the same period in 2024. For 2024, total exports stood close to $10 billion. As such, the imposition of a significant U.S. tariff on Cambodian imports could have a major effect on the country's manufacturing industry, particularly its garment and footwear sectors. During a workers' forum on June 7, Cambodian garment workers expressed their concerns that the 49 percent tariff increase would lead to job losses, worsening working conditions. Long Sophat, a 38-year-old factory worker in the Teuk Thla area of Phnom Penh, told the forum that a cut in garment orders would likely affect the lowest-skilled workers, Camboja News reported. 'I am afraid my boss will invest in other countries, and working conditions will worsen or result in the loss of job and income. I am responsible for my family, and I have bank debts,' she said. According to Camboja News, as of last year, the country had 1,555 factories and enterprises, employing nearly 1 million workers, many of them women from rural Cambodia. Mass layoffs in the Cambodian apparel and garment manufacturing sector, should they eventuate, could well result in widespread hardship and potentially political unrest. Working against Cambodia is the fact that the country has never commanded much attention in Washington – but when it does so, it is often for the wrong reasons. Since the first Trump administration, U.S. officials have become concerned about the country's economic and strategic proximity to China, a concern that has come to center around the Ream Naval Base, the subject of extensive Chinese refurbishment over the past few years. More recently, questions have been raised about the industrial-scale online scamming operations that have planted themselves firmly on Cambodian soil since the end of the COVID-19 pandemic. In a report last week, the rights group Amnesty International accused the Cambodian government of being 'complicit' in the scamming operations run mostly by Chinese crime syndicates, which have defrauded billions from victims around the world – including the United States. (The Cambodian government has denied this and similar allegations.) As Trump told Fox News earlier this week, 'We'll look at how a country treats us – are they good, are they not so good – some countries we don't care [about]. We'll just send a high number out,' he said. All of this compares unfavorably with Vietnam, a nation that was hit with a similarly harsh 46 percent tariff on April 2, but which has grown into an increasingly important strategic partner of the U.S. over the past two decades. Given that Vietnam's recently announced trade agreement will still see the country hit with a 20 percent tariff, it is hard to see how Cambodia can get a much better deal, at least without making substantial concessions on non-trade issues of concern to Washington.
The Star
10-06-2025
- Business
- The Star
Cambodia approves investment projects worth US$4.2bil in January-May period
PHNOM PENH: Cambodia attracted fixed-asset investment of US$4.2 billion in the first five months of 2025, up 52 per cent compared to the same period last year, said a Council for the Development of Cambodia (CDC)'s report released on Tuesday (June 10). The country approved 290 investment projects during the January-May period this year, up 89 per cent from 153 projects in the same period last year, generating roughly 203,000 jobs, the CDC said. China remained the top foreign investor in the kingdom, accounting for 62.27 per cent of the total investment amount, the CDC said. Cambodian Ministry of Commerce's Secretary of State and spokesperson Penn Sovicheat (pic) said the Regional Comprehensive Economic Partnership (RCEP) agreement and Cambodia's bilateral free trade agreements with China, South Korea, and the United Arab Emirates are major factors in attracting foreign direct investment. "These free trade pacts are magnets for foreign investors to Cambodia," he told Xinhua. Sovicheat said new investments would bring new capital, technologies and job opportunities for Cambodian people. - Xinhua
