Cambodia's RCEP Trade Surges 24% in H1, Boosting Economy

Trade in goods between Cambodia and the member states of the Regional Comprehensive Economic Partnership (RCEP) continues to strengthen, reaching more than $24 billion in the first half of 2026, up nearly 24% from the same period in 2025. This robust growth indicates a rising significance of Cambodia's international trade. RCEP is a regional trade agreement initiated by the 10 ASEAN member states in 2012. It currently comprises 15 members: the 10 ASEAN countries and five key partners — China, Japan, South Korea, Australia and New Zealand. According to the Ministry of Commerce, exports to RCEP member countries reached more than $5.6 billion, up nearly 12%, while imports totalled more than $18 billion, rising 28%. The increase in imports is largely attributed to raw materials, components, and fuel used in domestic manufacturing and processing industries, interpreted as investments to enhance competitiveness for re-export to international markets. Total trade with ASEAN member states reached around $10 billion, up nearly 22%. Exports were valued at approximately $3 billion, an increase of 2%, while imports from ASEAN exceeded $7 billion, up 33%. Among non-ASEAN RCEP members, trade with China totalled $11.64 billion, up 25.4%, with significant growth also observed with South Korea (up 36.8%) and Australia (up 51%). Hong Vanak, an economist at the Royal Academy of Cambodia, noted that Cambodia’s growing production capacity and improving diplomatic relations with countries around the world have helped boost the country’s international trade. He emphasized that the RCEP agreement plays a significant role in promoting Cambodia’s international trade by enhancing export and import capacity among its 15 member countries. Benefits gained by Cambodia from the agreement include tariff preferences, technology transfer, skills development, and employment opportunities generated through foreign direct investment (FDI). Regarding Cambodia’s trade deficit, Vanak explained that the higher import figure should not be a cause for concern, as most goods imported under the RCEP framework consist of raw materials, components, and fuel. These imports are largely used in manufacturing and processing for re-export to international markets. RCEP member countries represent a combined population of about 2.2 billion people, or roughly 30% of the world’s population, and account for $26.2 trillion in gross domestic product (GDP), equivalent to around 30% of global GDP, making them extremely important trade partners for Cambodia. In 2025, Cambodia’s merchandise trade with RCEP member countries totalled approximately $40.2 billion. Exports reached $9.8 billion, an increase of 7.01% compared with 2024, according to the Ministry of Commerce.