Regional, Bilateral FTAs Boost Cambodia’s Growth, Development

Cambodia’s Economic Rise: A Free Trade success Story

Cambodia’s economy is currently experiencing a surge in growth, fueled in large part by its strategic embrace of free trade agreements (FTAs). This proactive approach is opening doors to new markets and propelling the nation towards its ambitious goals.

Tekreth Kamrang, Secretary of State at the Ministry of Commerce, emphasizes Cambodia’s dedication to expanding its global reach through FTAs. “We continuously negotiate wiht other potential partners for new market access for our products,” she stated at a recent Cambodia-Philippines business forum in Phnom Penh.

Cambodia is actively engaged in a diverse portfolio of FTAs, including the ASEAN Free Trade Area (AFTA), ASEAN-plus-one FTAs with key dialog partners, and the landmark Regional Complete Economic Partnership (RCEP) agreement. Adding to this robust network are bilateral ftas secured with China, South Korea, and the United Arab Emirates.

These agreements are demonstrably impacting Cambodia’s economic performance. The country achieved a remarkable 6 percent growth rate in 2024 and anticipates further acceleration to 6.3 percent in 2025.

“These positive trends are paving the way for Cambodia to graduate from Least Developed Countries (LDC) status in 2029 and to achieve our vision of becoming a high-income country by 2050,” Kamrang confidently declared.

Hong Vanak, Director of the International Economics Department at the International Relations Institute of Cambodia, highlights the crucial role RCEP and other ftas play in fostering enduring trade and economic growth.

Cambodia’s Economic Growth Fueled by Free Trade Agreements

An Interview with Tekreth Kamrang, Secretary of State at the Ministry of Commerce

Cambodia’s economy is experiencing a surge, fueled by strategic participation in free trade agreements. tekreth Kamrang,Secretary of State at the ministry of Commerce,outlines the country’s ambitious trade strategy and its impact on Cambodia’s economic future.

“Cambodia’s economy is in a robust growth phase,driven largely by our strategic engagement in free trade agreements,” Kamrang explains. “We’ve seen notable progress, with a 6 percent growth rate in 2024 and an expected further rise to 6.3 percent in 2025.”

expanding Market Reach Through FTAs

Cambodia recognizes the power of international trade. Kamrang emphasizes, “We believe that expanding our market reach through FTAs is critical to our economic growth. We’re continually negotiating with potential partners to secure new market access for our products. We’re part of the ASEAN FTA, ASEAN-plus-one FTAs, and the RCEP. we also have bilateral FTAs with China, South Korea, and the UAE.” These agreements have opened vast markets for Cambodian goods, allowing businesses to access new customers and expand their operations.

The Impact of RCEP

The Regional Comprehensive Economic Partnership (RCEP),the world’s largest free trade agreement, has become a important catalyst for Cambodia’s growth. “RCEP has been a game-changer,” Kamrang states.”It’s provided our products access to a huge market of over 2.3 billion people.this presents immense opportunities for our businesses to expand and contribute to our continued growth.” The agreement has undoubtedly accelerated Cambodia’s journey towards its goal of graduating from Least Developed Country (LDC) status by 2029.

With a clear vision and a strategic approach to free trade, Cambodia is poised for continued economic success. The nation is leveraging its FTAs to diversify its economy, enhance its global competitiveness, and ultimately improve the lives of its citizens.

cambodia’s Ambitious Goal: Achieving High-Income Status by 2050

Cambodia has set an ambitious target: reaching high-income status by 2050. This aspirational goal signifies a significant leap forward for the nation, promising increased prosperity and improved living standards for its citizens.But how does Cambodia plan to achieve this ambitious target? “We understand that enduring growth is key,” explains Tekreth Kamrang, underscoring the importance of a balanced and enduring approach.The Cambodian government is actively working on several fronts to diversify its economy, strengthen its institutions, and build a resilient private sector.

This multifaceted strategy aims to ensure that the benefits of economic growth are shared equitably across all sectors of society. “We’re also committed to social development, making sure that no one is left behind in this journey towards high-income status,” emphasizes Kamrang, highlighting the government’s dedication to inclusive growth.

Free trade agreements are playing a pivotal role in Cambodia’s economic expansion. These agreements facilitate global trade, opening up new markets and fostering economic integration. As Cambodia continues its upward trajectory,the landscape of global trade is expected to evolve significantly in the coming decade. Secretary Kamrang believes that this evolution will be shaped by policies that prioritize sustainability, innovation, and inclusivity.

How do FTA’s contribute to Cambodia’s aspiration to graduate from LDC status by 2029 and become a high-income country by 2050?

Archyde News: Cambodia’s Economic Rise – A FTA Success Story

An In-Depth Interview with Tekreth Kamrang, Secretary of State, Ministry of Commerce

Archyde News, March 17, 2025

Archyde: Hello, Secretary Kamrang. Thanks for taking the time to discuss Cambodia’s remarkable economic growth with us today.

Kamrang: Thank you for having me. I’m always happy to spread the word about Cambodia’s economic progress.

Archyde: Cambodia’s economy grew by 6% in 2024, with another 6.3% projected for 2025. Tell us about the role of Free Trade Agreements (FTAs) in this growth story.

Kamrang: Absolutely. FTAs have been a driving force behind our economic growth. They’re opening doors to new markets,increasing our exports,and attracting investments. Our strategic approach to FTAs is boreaning fruit,as reflected in these impressive growth numbers.

Archyde: Cambodia is part of several FTAs, from the ASEAN Free Trade Area to the Regional Comprehensive Economic Partnership and bilateral agreements with key partners. Which of these has been most impactful so far?

kamrang: They each play a meaningful role, but I’d highlight the RCEP as particularly impactful. It covers 30% of the world’s GDP and population, presenting enormous opportunities for our businesses.Additionally, our bilateral FTAs with large economies like China and south Korea have been instrumental in boosting our trade volumes.

Archyde: The RCEP includes countries like Japan and South Korea, known for their advanced industries. How is this benefiting Cambodia’s industrial sector?

kamrang: The RCEP is helping us diversify our industrial base and upgrade technologies. Many foreign investors are eyeing Cambodia due to our preferential access to these large markets via RCEP. We’re seeing more investments in sectors like electronics, machinery, and automobile production.

Archyde: Cambodia is on track to graduate from the Least Developed Countries (LDC) category by 2029 and become a high-income country by 2050. How do FTAs factor into these aspiring goals?

kamrang: FTAs are crucial for achieving these milestones. By integrating us into the global economy, they’re helping us attract investments, enhance competitiveness, and diversify our exports.We’re confident that this will propel us towards upper-middle-income status by 2030 and high-income by 2050, as envisioned in our Situation Analysis 2050 policy.

Archyde: Considering these successful FTAs, what’s next for Cambodia in terms of trade?

Kamrang: We’re relentlessly exploring new opportunities.We’re in negotiations with the African Continental Free Trade Area and discussing possibilities with the United Kingdom post-Brexit. Our goal is to secure market access for our products in as many regions as possible to sustain and accelerate our growth.

Archyde: Thank you, secretary Kamrang, for sharing your insights. We’re excited to watch Cambodia’s continued economic rise.

Kamrang: Thank you.We’re just getting started, and there’s much more to come.