Cambodia has recorded a remarkable improvement in its trade balance with South Korea, achieving its most favorable result in monthly trade since 2016. In March 2023, Cambodia’s trade deficit with South Korea stood at just over $8.5 million, a significant reduction driven by a decrease in imports and a surge in exports. Imports from South Korea dropped by 37% year-on-year, totaling $109.078 million, while exports to South Korea rose by 18.3%, reaching $72.535 million.

The positive trend in Cambodia’s trade balance is largely attributed to the implementation of the Cambodia-Korea Free Trade Agreement (CKFTA), which came into effect on December 1, 2022. This agreement has played a pivotal role in enhancing Cambodia’s export performance by ensuring that Cambodian goods meet the quality standards and specific requirements of the South Korean market. This has allowed Cambodia to gain greater access to South Korean consumers, whose demand for Cambodian products continues to rise.

Despite global economic uncertainties, Cambodia’s trade relationship with South Korea has shown resilience. In the first quarter of 2023, Cambodia’s trade deficit with South Korea narrowed by an impressive 67.3%, amounting to $36.543 million, compared to a much larger deficit of $111.802 million in the same period the previous year.

Hong Vanak, an economics researcher, has attributed this success to Cambodia’s well-crafted trade policies and the growing demand for Cambodian products in the South Korean market. He emphasized the importance of maintaining this momentum in exports to fully capitalize on future opportunities as global economic conditions stabilize.

This achievement highlights the effectiveness of Cambodia’s trade agreements, particularly the CKFTA, in strengthening its position in the regional economic landscape. As the Kingdom continues to improve its trade balance and export performance, it is well on track to leverage these agreements for sustained economic growth and increased influence in the region.