Trade and Investment in Cambodia

Discussion Papers

No.667

by Kiyoyasu TANAKA

May 2017

ABSTRACT

Openness to international trade and foreign direct investment (FDI) has contributed to the recent growth of the Cambodian economy. This paper documents patterns of international trade and FDI in Cambodia. First, both export and import increased substantially in recent periods. The major export partners are mainly developed countries including the U.S., the U.K., Germany, and Japan. The major import partners are mainly East Asian countries including China, Thailand, Vietnam, and Hong Kong. Second, fabrics and manmade staple fibers are the major import commodities whereas apparels, clothing, and footwear are the major export commodities. Third, inward FDI stock increased substantially from 1.7 billion US dollars in 2001 to 7.8 billion US dollars in 2012, suggesting a substantial growth of economic activity by foreign-owned firms.

Keywords: Cambodia, Trade, Investment, Garment sector, Global Value Chain
JEL classification: F14, F21, F63

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