Cambodia trade jumps 19% to $23B

Cambodia’s trade machine is still running hot. In the first quarter of 2026, the country’s total international trade came in at a little over $16 billion, up 17% from a year earlier. That matters because Cambodia’s growth story still depends heavily on making things, shipping them abroad, and pulling in imported parts and materials to keep factories humming. The headline claim that trade “jumped 19% to $23B” does not match the official Q1 customs figures now in circulation. ### So what actually happened? Between January and March, Cambodia exported $8.09 billion of goods and imported $8.33 billion, leaving a relatively small trade deficit of about $240 million. Both sides of the ledger grew fast — exports rose 17.7% year over year and imports rose 16.7%. That is not a one-off blip either; the first two months of 2026 had already shown similar momentum. ### Why is the $23 billion number off? (akp.gov.kh) Basically, the best-supported public figure for Cambodia’s Q1 2026 total trade is just over $16 billion from the General Department of Customs and Excise, echoed by state media. There are bigger sub-totals floating around for trade with specific blocs or broader measures, but they do not line up with the claim that total Q1 trade hit $23 billion. So the story is real — strong growth — but the headline number looks inflated. ### What is Cambodia selling? Garments are still the anchor. Clothing and accessories exports reached about $2.58 billion in Q1, up roughly 6% from a year earlier, and made up 31.85% of total exports. But the mix is getting broader — machinery, electrical equipment, footwear, leather goods, furniture, grains, rubber, fruit, vegetables, and textiles all show up in the export basket now. That matters because Cambodia has spent years trying to move beyond a pure cut-and-sew economy. (akp.gov.kh) ### Where is the demand coming from? The US remains Cambodia’s biggest export destination, with Vietnam, Japan, China, and Spain also among the top markets in Q1. Japan alone accounted for $753.46 million in bilateral trade during the quarter, with Cambodia running a sizable surplus there. That tells you Cambodia is not relying on one buyer alone — but the US is still the load-bearing market for finished goods. (phnompenhpost.com) ### Why are imports rising too? Because Cambodia’s factories import a huge share of what they need to make export goods. China is the clearest example. In Q1, Cambodia imported nearly $4.7 billion from China, more than half of all imports, while total Cambodia-China trade reached about $5.16 billion. A lot of that is raw material, machinery, and components that get processed in Cambodia and then shipped onward. Think of Cambodia less as a standalone exporter and more as an assembly node inside a regional supply chain. (akp.gov.kh) ### Is investment helping? Yes — and pretty directly. Cambodia approved 146 investment proposals in Q1 with total registered capital of about $2.5 billion, expected to create around 82,000 jobs. The projects include special economic zones, wind power plants, auto and motorcycle assembly, and tyre manufacturing. That is exactly the kind of industrial build-out that can lift both imports now and exports later. (phnompenhpost.com) ### What’s the catch? The catch is concentration risk. Cambodia’s export engine still leans hard on garments and on the US consumer, while its factory base leans hard on Chinese inputs. On top of that, Cambodia has had to navigate fresh uncertainty around potential US tariffs on its exports. So the trade growth is real, but it sits on a supply chain that is efficient only when geopolitics stays manageable. (phnompenhpost.com) ### Bottom line Cambodia did post a strong Q1. But the clean read is this: trade rose solidly to just over $16 billion, not $23 billion. The economy is getting a lift from factory exports and new investment, yet the same numbers also show how dependent that momentum remains on imported inputs, preferential trade access, and continued demand from a few big markets. (akp.gov.kh) (phnompenhpost.com)