Cambodia’s EU Trade Surges Past 5 Billion Dollars in 2025

Cambodia closed 2025 on a high note in its trade relationship with Europe as exports to the European Union reached US$5.01 billion, reflecting a strong year on year growth of 13.5 percent based on the Ministry of Commerce report released in mid January 2026, a result that highlights how Cambodian producers are becoming more competitive and better connected to global supply chains. This surge was fueled by a diverse mix of manufacturing, agro processing and newly emerging industrial products, with garments, footwear and travel goods continuing to lead the way alongside bicycles, car tyres and EU compliant agricultural exports such as milled rice and cassava, all of which show how the country is moving beyond traditional exports toward higher value and more regulated international markets.

Key EU Markets Driving Cambodia’s Export Performance

The European Union remained one of Cambodia’s most important trading partners in 2025, accounting for 16 percent of the country’s total exports, with Spain, the Netherlands, Germany, France and Belgium standing out as the Kingdom’s largest buyers. Spain topped the list with US$1.19 billion in Cambodian goods, followed by the Netherlands at US$1.01 billion, France at US$568 million and Belgium at US$503 million, each posting impressive double digit growth of 11.5 percent, 20.6 percent, 12.5 percent and 20.7 percent respectively, showing solid demand across multiple European markets. Germany, while still one of the top destinations, recorded a slight decline of 0.8 percent to US$1.10 billion, suggesting a modest cooling in that particular market even as overall EU trade remained robust.

Preferential Tariffs and Strong Cooperation Fuel Trade Momentum

Government officials say this steady growth did not happen by chance but is the result of closer cooperation between Cambodia and the EU to expand market access and improve technical support for exporters. H.E. Penn Sovicheat, Secretary of State and Spokesperson for the Ministry of Commerce, explained the underlying advantage behind this performance by saying, “The positive trade momentum is supported by the EU’s preferential tariff system, which provides duty-free and quota-free access for most Cambodian products,” a benefit that continues to make Cambodian goods more attractive and competitive in European markets while encouraging local producers to meet international standards.

EU Imports into Cambodia Continue to Ease

While exports to Europe surged, Cambodia’s imports from the EU moved in the opposite direction, falling to US$863 million in 2025, a drop of 5.8 percent compared to the previous year, indicating a shift in trade dynamics and possibly stronger domestic or regional sourcing. The goods Cambodia typically buys from Europe include machinery, household appliances, pharmaceuticals, vehicles, pearls and precious stones, textiles and electrical equipment, reflecting Europe’s role as a supplier of high value and technologically advanced products rather than everyday consumer goods.

Conclusion

Cambodia’s record breaking export performance to the European Union in 2025 underscores the country’s growing role in global trade and its ability to compete in demanding international markets. With strong demand for both manufactured and agricultural products, supportive EU trade policies and expanding cooperation between both sides, the outlook for Cambodia’s export driven growth remains promising. If this momentum continues, the Kingdom is well positioned to further strengthen its economic ties with Europe while creating more opportunities for local industries, farmers and workers.

Ministry of Commerce rolls out new reforms to simplify business life in Cambodia

Cambodia’s Ministry of Commerce has announced a major package of reforms designed to make doing business easier, faster, and more transparent across the country. The ministry introduced three key initiatives that focus on simplifying business registration, modernizing how public service payments are made, and temporarily waiving penalties for companies that have fallen behind on filing their annual declarations. The announcement, shared on the MoC’s official Facebook page under the title ‘Simplification and Modernization of Public Services for Business Registration’, signals a clear push by the government to create a more attractive and efficient business environment for both local and international companies.

Three new initiatives aim to remove red tape and boost efficiency

According to the Ministry of Commerce, the reform package includes the Simplification of Business Registration, the Modernization of Public Service Payments, and the Waiver of Penalties for Companies Failing to File Annual Declarations. Together, these measures are meant to reduce unnecessary paperwork, shorten processing times, and make it easier for businesses to stay compliant with regulations. The ministry said these steps are expected to make procedures more convenient and efficient, helping to support the creation of a better business environment nationwide.

A new Prakas streamlines how companies register and operate

At the heart of the reform is a new Prakas on the Simplification of Business Registration, which is made up of 12 chapters and 35 articles covering everything from applying for a company registration form to registering amendments, opening local branches, and even dissolving a company. It also includes rules for filing annual reports, managing company agencies, handling complaints under the ministry’s authority, and paying service fees. The first part of the Prakas focuses on cutting down procedures and document requirements by simplifying complex paperwork and reducing the time it takes to register a local branch. This has been achieved by moving from paper based systems to electronic registration, streamlining approval processes, and offering new options for issuing formal registration documents.

Digital tools bring Cambodia’s business registry into the modern era

The second part of the Prakas looks toward the future by modernizing commercial registration through better corporate governance, online background checks, and the introduction of the verify.gov.kh system, which replaces traditional document verification with QR codes. Digital signatures are now recognized on application documents, and a new complaint service has been introduced to help prevent improper share transfers. These changes aim to make the system more secure, transparent, and aligned with international standards.

Online payments make government services quicker and easier

To further support businesses, the Ministry of Commerce has partnered with Advanced Bank of Asia Ltd and Acleda Bank Plc to integrate online payment systems into their mini applications. This allows companies to pay for services such as annual declarations and the enforcement of protection orders directly through ABA and Acleda apps. The ministry plans to expand these services to other banks soon, making commercial transactions faster, more convenient, and fully digital for a wider range of users.

Temporary fine waivers offer relief for noncompliant companies

Another important part of the reform is the waiver of penalties for companies that failed to file their annual declarations and would normally face a fine of 2 million riel per year, or about $500. Many businesses had asked for relief, and in response the Ministry of Economy and Finance and the Ministry of Commerce agreed to waive fines for only the most recent year. To qualify, companies must meet two conditions. First, they must pay the penalty for the previous year within 60 working days starting from January 8. Second, they must take part in the shareholder background check process, which supports anti money laundering efforts.

Noncompliance could lead to inactive status and legal consequences

Companies that do not meet these conditions or fail to make the required payment will be classified as an ‘Inactive Company’. This status could affect their business registration and other legal rights under existing laws and regulations, making it harder for them to operate or expand in the future.

Conclusion

Taken together, these reforms show a strong commitment by the Ministry of Commerce to modernize Cambodia’s business environment and make it more competitive. By reducing red tape, embracing digital systems, and offering temporary relief to struggling companies, the government is sending a clear message that it wants to support growth, improve compliance, and make Cambodia a more attractive place to do business.

2026 Car Loans in Cambodia Make Owning a Vehicle More Possible Than Ever

Buying a car in 2026 no longer has to depend on years of saving because Cambodian banks are stepping in with affordable car loan programs that make ownership far more realistic for everyday people and businesses alike. With interest rates that are lower than ever and repayment periods stretching up to several years, many drivers can now get behind the wheel sooner than expected. Across Cambodia, major financial institutions are competing to attract borrowers by offering flexible loan sizes, high financing percentages, and terms designed to fit different budgets, whether you are buying a brand new model or a reliable used vehicle.

PPC Bank Offers High Loan Limits and Long Repayment Terms

PPC Bank stands out for borrowers who want bigger financing options, especially those purchasing higher value vehicles. The bank provides new and used car loans of up to $300,000 for individuals and $1,000,000 for companies, making it suitable for both private buyers and fleet owners. Interest rates start at 8.80 percent per year for new cars and 10.90 percent for used cars, while loan coverage reaches 80 percent of the vehicle value for new cars and 70 percent for used ones. Repayment periods are also generous, going up to 108 months for new cars and 84 months for used vehicles, giving borrowers more room to manage monthly payments.

BRED Bank Cambodia Focuses on High Financing for New Cars

BRED Bank Cambodia is especially attractive for buyers who want to finance most of their vehicle’s price. For new cars, the bank offers loans covering up to 90 percent of the car value, with interest rates starting from 8 percent and repayment periods of up to seven years. For single car vehicles, borrowers can access up to 70 percent of the car price, with rates beginning at 9 percent and repayment terms of five years. This structure makes BRED Bank appealing to drivers who want to minimize their upfront payment while still enjoying competitive interest rates.

Canadia Bank Provides Flexible Options for New and Used Vehicles

Canadia Bank gives customers a wide range of options depending on whether they are buying new or used. New car buyers can receive financing of up to 80 percent of the vehicle price, with interest rates ranging from 8.5 percent to 10.5 percent and repayment periods of up to 84 months. For single car vehicles, interest rates range from 10.5 percent to 15.5 percent, with loan terms extending up to 72 months. This flexibility allows borrowers to match their loan package to their budget and the type of vehicle they choose.

Wing Bank Delivers Speed and Convenience for Buyers

Wing Bank is designed for customers who value fast approval and straightforward financing. It offers car loans from $5,000 to $100,000, with competitive interest rates starting at 10 percent. New cars can be financed for up to 96 months, while used cars come with loan terms of up to 60 months. With its quick processing and flexible repayment options, Wing Bank is a strong choice for buyers who want to drive away in a new vehicle without long delays.

Shinhan Bank Offers One of the Lowest Interest Rates

Shinhan Bank attracts borrowers with one of the lowest interest rates in the Cambodian car loan market. It offers financing of up to $100,000 or the equivalent in riel, with an interest rate of just 7.5 percent per year. Loan terms go up to seven years, giving customers both affordability and long term stability. This makes Shinhan Bank a smart option for drivers who want predictable and lower cost monthly repayments.

CIMB Bank Supports Buyers With Deferred Payment Options

CIMB Bank provides loans covering up to 70 percent of the car price, with interest rates of 12 percent for new cars and 15 percent for used cars. One unique feature is its one year payment holiday, allowing borrowers to delay repayments for a year with prior notice before starting to pay. This option is especially useful for buyers who need time to stabilize their finances before beginning regular installments.

Conclusion

With so many competitive car loan options available in Cambodia in 2026, owning a vehicle has become far more accessible than ever before. Whether you are looking for low interest rates, high financing percentages, or longer repayment periods, these six major banks offer solutions tailored to different financial needs. The key is to compare loan conditions carefully and contact each bank directly to find the package that best fits your budget and lifestyle, ensuring that your journey toward car ownership is both affordable and stress free.

Cambodia and the United States Strengthen Trade Ties With a US$13 Billion Milestone

Cambodia and the United States reached a major economic milestone in 2025 as bilateral trade climbed to US$13.14 billion, a sharp 29 percent increase from US$10.17 billion in 2024, according to figures released by the Ministry of Commerce. This surge reflects the deepening commercial relationship between the two countries and highlights the growing importance of the US market for Cambodian producers and exporters. At a time when global trade conditions remain uncertain, Cambodia’s ability to expand its footprint in one of the world’s largest economies signals both resilience and increasing competitiveness across its key industries.

Cambodian Exports Dominate Trade Growth

Exports from Cambodia to the United States continued to be the driving force behind this growth, reaching about US$12.73 billion in 2025, up 28.48 percent from US$9.9 billion the year before. These shipments made up 42 percent of Cambodia’s total exports, which stood at US$30.14 billion, confirming the United States as the Kingdom’s largest export destination. This strong performance shows how deeply Cambodian manufacturers and producers have embedded themselves in the US market, particularly in sectors that depend on reliable supply chains and consistent product quality.

Rising Imports Reflect Expanding Economic Links

Trade between the two countries is not one sided, as Cambodia also increased its imports from the United States to more than US$417 million, a notable year on year jump of 57.83 percent. This rise points to growing demand within Cambodia for American products and technology, especially in areas that support industrial development and healthcare. As local businesses modernize and expand, they are increasingly turning to US suppliers for advanced equipment and high quality inputs that help them stay competitive.

Strong Performance Despite New Tariffs

Cambodia’s export momentum has remained solid even after new US tariff rates came into effect, underscoring the strength of its trade relationship with Washington. H.E. Penn Sovicheat, Secretary of State and Spokesperson for the Ministry of Commerce, pointed to the successful negotiation of a reciprocal trade agreement that established a 19 percent reciprocal tariff rate, giving businesses on both sides more clarity and stability. “The two countries will continue to hold technical working group meetings under the Cambodia U.S. Investment and Trade Framework to further facilitate the creation of a favourable business and investment environment,” he said during the Ministry’s annual meeting, highlighting the ongoing commitment to open and predictable trade.

What Cambodia Sells and Buys From the United States

The backbone of Cambodia’s exports to the United States includes apparel, clothing accessories, leather products, travel goods, handbags, electrical machinery and equipment, and footwear, all of which have found strong demand among American consumers. In return, Cambodia brings in vehicles, machinery and mechanical appliances, along with medical instruments and pharmaceutical products from the United States, helping to support both industrial growth and public health at home.

Conclusion

The record US$13.14 billion in trade between Cambodia and the United States in 2025 is more than just a number. It reflects a deepening partnership built on mutual benefit, strong market demand, and ongoing cooperation between the two governments. With solid export growth, rising imports, and active engagement through trade frameworks, the relationship is well positioned to continue expanding in the years ahead, offering new opportunities for businesses and investors in both countries.

Source: AKP

As we start 2026, Cambodia is facing a reality we haven’t seen in decades. While the government continues its “Phase 2” transition toward high-tech growth, the country is actually in the middle of a massive rescue mission. If 2025 was the year of the “border shock,” 2026 must be the year we bring our people home—not just to their villages, but back into the economy.

To succeed this year, Cambodia cannot just talk about 5G and AI. We must prioritise three urgent, human-centred goals.

Immediate priority: Reintegrating the million

The most pressing issue for 2026 is the nearly one million people who fled the border or returned from Thailand during the 2025 conflict. As of January, more than 400,000 remain internally displaced, and hundreds of thousands more are back in their home villages with no way to pay their debts.

Our top priority this year must be economic reintegration. We cannot simply tell these workers to “go back to farming.” The government needs to fast-track “TVET 2.0”—a massive, emergency training programme to enable these manual labourers to have more job opportunities. But training takes time; in the short term, we need immediate debt relief and job-matching platforms that connect returnees with new job opportunies in Phnom Penh, Sihanoukville and other provinces.

Cambodians salvage their possessions from homes destroyed by shelling and airstrikes in Prey Chan village, Banteay Meanchey province, while parts of the village remain illegally occupied by Thai forces. KT/Khem Sovannara

Economic priority: Filling the $5 billion trade gap

With political tensions likely to linger through the 2026 Thai election cycle, the border will not return to normality soon. The paralysis of nearly $5 billion in annual border trade is a massive blow, but it is also a forced opportunity to diversify.

To prevent a permanent economic slide, our 2026 priority must be supply chain realignment. We are already seeing Vietnamese buyers replace Thai ones for our agricultural exports, and through the RCEP agreement, we must aggressively pivot our electronics and automotive parts toward more stable markets in Japan, South Korea, and China.

However, finding new buyers is only half the battle; we also have to stop being “import-addicted.” For years, we relied on Thailand for 45% of our essential goods and 30% of our fuel, Cambodia needs to prioritise domestic resilience by incentivising local food processing and the production of agriculture inputs and construction materials right here at home.

Survival priority: Digital skills

The 2025 crisis was a wake-up call: an economy built on physical borders and manual migration is inherently fragile. This is why the shift to high-tech growth isn’t a luxury. It’s a survival tactic.

While the 5G rollout and new data centres provide the skeleton of a digital economy, we must now provide the muscle: human capital. By training workers for tech-enabled roles—such as e-commerce entrepreneurship, digital logistics, and remote service work— we can protect our workers from the geopolitical shocks of the future.

Beyond individual job security, a digitally literate workforce is the engine for national economic sovereignty. It allows Cambodia to move up the value chain, attracting high-quality foreign investment that seeks more than just cheap labour.

The bottom line

In 2026, Cambodia’s true priority isn’t a “Pentagonal Strategy” on a piece of paper. It is the people behind the numbers. If we can reintegrate our displaced workers, diversify our trade, and train our people with digital skills to contribute to our digital economy, Cambodia will be remembered as a nation that not only endured but also thrived in the face of challenges. The path forward requires a difficult but necessary transition: we must evolve from a nation that exports labour and imports essentials to one that builds value and creates opportunity within its own borders.

Source: Khmer Times

Cambodia’s Trade Momentum Accelerates Beyond US$65 Billion

Cambodia recorded a major milestone in its external trade performance in 2025, with total international trade surpassing US$65.25 billion, reflecting a robust year on year growth of 18 percent compared to 2024, as reported by the Ministry of Commerce. This strong expansion signals renewed confidence in the Kingdom’s economic fundamentals and its growing integration into global markets, supported by steady demand for Cambodian products and improved trade facilitation. The performance highlights Cambodia’s resilience amid global uncertainties and reinforces its position as an increasingly active trading nation in the region.

Export Growth Driven by Manufacturing and Agriculture

Exports remained a key engine of growth, reaching US$31.28 billion in 2025, an increase of 17 percent from US$26.75 billion in the previous year. Cambodia’s export portfolio continued to expand across both manufacturing and agricultural products, with major outbound goods including garments, machinery, electrical equipment, footwear, leather goods, grains, furniture, rubber, fruits, vegetables, pearls, toys, and textiles. This diversified mix underscores the Kingdom’s gradual transition from reliance on a narrow range of products toward a broader and more resilient export base capable of responding to varied international demand.

Rising Imports Reflect Strong Domestic and Industrial Demand

Imports also climbed sharply, rising by more than 18 percent to US$33.96 billion, indicating strong domestic consumption and sustained demand for industrial inputs. China, the United States, and Vietnam remained Cambodia’s largest trading partners, reflecting deepening economic ties with major global and regional economies. The growth in imports mirrors expanding production capacity, infrastructure development, and consumer activity, all of which are essential components of long term economic growth.

Government Reforms Fuel Trade Diversification

Minister of Commerce H.E. Mrs. Cham Nimul attributed the strong trade performance to comprehensive reforms led by the Royal Government of Cambodia, particularly those aimed at diversifying products and export destinations. “These figures reflect the results of targeted measures implemented by the Royal Government of Cambodia to strengthen diversification in domestic production and international exports,” she said during the opening ceremony of the Ministry’s annual meeting reviewing achievements in 2025 and setting priorities for 2026. Her remarks highlighted the impact of policy consistency, strategic planning, and institutional coordination in strengthening Cambodia’s trade competitiveness.

Digital Trade Facilitation and Capacity Building

The Ministry of Commerce has also intensified efforts to enhance trade efficiency by strengthening trade capacity and simplifying export procedures through digital ecosystems. These initiatives are designed to reduce administrative burdens, improve transparency, and enable businesses of all sizes to participate more easily in international trade. Digitalization has become a cornerstone of Cambodia’s trade strategy, supporting faster processing times and better access to global markets.

Garment and Footwear Sector Remains the Backbone

Despite diversification efforts, the garment, footwear, and travel goods sector continues to be Cambodia’s largest source of foreign exchange, accounting for around 50 percent of total export value. According to the Ministry of Labour and Vocational Training, the sector includes approximately 1,608 factories and provides employment to about 913,000 workers, the majority of whom are women. This sector remains a critical pillar of inclusive growth, job creation, and income generation across the country.

Conclusion

Cambodia’s strong international trade performance in 2025 reflects the combined impact of effective government reforms, expanding industrial capacity, and improved trade facilitation. With exports and imports both rising sharply and diversification gaining momentum, the Kingdom is well positioned to deepen its integration into global value chains. Sustained focus on digital transformation, workforce development, and market expansion will be essential to maintaining this positive trajectory and ensuring long term, inclusive economic growth.