Promoting GFT group exports, Cambodia "bets" on RCEP and bilateral FTAs

Cambodia is pinning its hopes on the Regional Comprehensive Economic Partnership (RCEP) and bilateral Free Trade Agreements (FTAs) to boost garment, footwear and tourism (GFT) exports.

Footwear is one of Cambodia's main export items. (Source: Khmer Times)

Speaking to a local television channel, Ly Khun Thai, president of the Cambodian Footwear Association, said that the Southeast Asian nation has seen a significant increase in footwear exports to China and South Korea since RCEP and Cambodia's bilateral FTAs ​​with China and South Korea came into effect last year.

“There are many countries participating in RCEP. With preferential tariffs, we hope to receive more orders for our GFT products from RCEP member countries,” he said.

The main markets for Cambodian GFT products are currently Europe, the United States, and Canada.

Ly Khun Thai's comments came after the country recorded a nearly one-fifth drop in exports of GFT products in the first half of 2023.

According to a report by the General Department of Customs and Excise, Cambodia exported GFT goods worth US$5.26 billion from January to June this year, a decrease of 18.7% compared to US$6.47 billion in the same period last year.

GFT exports are Cambodia's largest source of foreign exchange earnings. This sector comprises approximately 1,100 factories and branches, employing around 750,000 workers, mostly women.

Speaking to Xinhua on July 16, Cambodian Deputy Minister and Ministry of Commerce Spokesperson Penn Sovicheat said that RCEP and Cambodia's bilateral FTAs ​​with China and South Korea are key factors contributing to boosting the country's exports.

“These FTAs ​​have and will continue to boost our export growth in the long term,” he affirmed.

Sovicheat reiterated that these agreements will help Cambodia escape its status as the least developed country by 2027, achieving the ambitious goals of becoming an upper-middle-income country by 2030 and a high-income country by 2050.

RCEP comprises 15 Asia -Pacific countries, including 10 ASEAN member states and 5 trading partners: China, Japan, South Korea, Australia, and New Zealand.

Source: https://baoquocte.vn/thuc-day-xuat-khau-nhom-gft-campuchia-dat-cuoc-vao-rcep-va-fta-song-phuong-234868.html