Cambodia - Market OverviewCambodia - Market Overview
Cambodia has experienced rapid economic growth over the last decade. Cambodian gross domestic product (GDP) has grown at around seven percent over the past decade and it is expected to continue to grow at a similar rate in 2017. In 2016, Cambodia graduated to lower-middle income status as measured by the World Bank with a Gross National Income (GNI) per capita of $1,070. The country, however, remains one of the poorest in Asia. It is still reliant on foreign aid, with donor support totaling approximately 25 percent of the government’s budget in 2016. Despite the strong performance of the garment, tourism, and construction/real estate sectors, Cambodia remains an agrarian country.
Since Cambodia became the first least-developed country (LDC) to join the World Trade Organization (WTO) in 2004, trade has steadily increased. The United States is Cambodia’s largest single-country export destination. In 2015, approximately 25 percent of Cambodia’s total exports reached the United States – primarily garment and footwear products. In 2016, Cambodian exports to the United States were valued at $2.81 billion and U.S. exports to Cambodia totaled $361 million. The United States and Cambodia are signatories to a 2006 Trade and Investment Framework Agreement (TIFA) to promote greater trade and investment in both countries and to provide a forum for addressing bilateral trade and investment issues. In February 2016, the third TIFA meeting was held in Phnom Penh. The United States and Cambodia began exploratory discussions on a Bilateral Investment Treaty (BIT) in May 2013, but the Cambodian government has not yet officially indicated interested in negotiating a BIT. Cambodia is also a member of the Association of Southeast Asian Nations (ASEAN) and the Asia Free Trade Area (AFTA).
Cambodia Trade Development and Promotion