COVID-19’s is forcing Cambodia to refocus on expanding its highly concentrated export market. According to a spokesperson for the Ministry of Commerce, diversification has been one of the ministry’s highest priorities and the ministry understands the devastating effect COVID-19 has had on these two major trading partners.

To achieve this, the ministry has outlined an enhanced focus on free-trade agreements (FTAs) such as the Regional Comprehensive Economic Partnership (RCEP) between Asean nations and their partner states Australia, China, Japan, New Zealand and South Korea, as well as the continued FTA negotiations with China that are expected to be finalised by the end of the year. India, which is also an Asean FTA partner, opted out of RCEP in November last year.

Export diversification has been a long-term policy for the Ministry of Commerce since the ministry released its 2019-2023 Cambodia Trade Integration Strategy, with its Minister Pan Sorasak stating upon the release of the report the need for a new strategy that focuses on strengthening the country’s competitiveness to support its transition into a developed economy and to benefit from new sources of growth, particularly from the so-called Fourth Industrial Revolution, involving 5G, artificial intelligence and the internet of things.