Korea-Cambodia FTA reached historic high of $1.05 billion last yearBy Kim Hyun-binCambodian Ambassador to Korea Chring Botumrangsay shared candid insights on the burgeoning bilateral relations, highlighting the economic synergy between the two nations at a business investment event on Thursday.
"Korea’s commitment to expanding Free Trade Agreements (FTA) and Economic Partnership Agreements (EPA) with other partners, in combination with Korea’s ambition to become a global pivotal state and its Korea-ASEAN Solidarity Initiative (KASI), will play a pivotal role in leveraging economic cooperation and creating more opportunities in the region and the world," she said during the opening remarks at the 2nd Korea-Cambodia Business and Investment Forum held at the Trade Tower in Seoul.
"The Joint Economic Committee Meeting, Agreement on Double Taxation Avoidance (DTA), and Cambodia-Korea Free Trade Agreement (CKFTA) have been introduced while both countries have also engaged in the Regional Comprehensive Economic Partnership (RCEP) and ASEAN-ROK Free Trade Agreement."
Korea-Cambodia celebrates the one-year milestone since the implementation of the Korea-Cambodia Free Trade Agreement (FTA). The FTA, which came into effect last year, has led to a surge in bilateral trade, reaching a historic high of $1.05 billion.
Korea primarily exports consumer goods such as beverages, cosmetics, and automobiles to Cambodia while importing raw materials like textiles, aluminum and natural rubber.
Investment opportunities in Cambodia have expanded beyond traditional sectors, with the country actively diversifying its industries.
The introduction of the New Investment Law in 2021, focusing on the non-discriminatory treatment of domestic and foreign investors, has paved the way for a more conducive investment environment.
"Cambodia’s new investment law, sub-degree, and its launch of the pentagonal strategy phase 1 provide a conducive investment environment and create more opportunities for businessmen and investors," the ambassador said.
As the event unfolded, participants gained deeper insights from relevant sectors, further illuminating the multifaceted aspects of Korea-Cambodia relations and the promising avenues for economic cooperation between the two nations.
Amid global uncertainties, Korea sees Cambodia as a promising alternative market. The strategic advantages of Cambodia, including its high economic growth, low labor costs, and youthful population, make it an attractive prospect for Korean companies seeking new markets.
In addition, Cambodia's young population, coupled with its robust economic participation rate of 84.9 percent, positions it as an attractive destination for investment.
The forum aims to provide valuable insights for those considering entering the Cambodian market. The forum featured experts from Cambodia's Chamber of Commerce, the Ministry of Industry, Science and Technology and the Ministry of Labor and Vocational Training, offering a comprehensive view of Cambodia's market environment and prospects from a Korean perspective.
Speakers delved deep into the business and investment environment, industrialization and digitalization, human capital and laws on labor and unions to give a better understanding of Cambodia’s overall business environment for Korean investors.
Korea and Cambodia established diplomatic relations on Oct. 31, 1997. This marked the formal initiation of diplomatic ties between the two countries, and since then, they have engaged in various collaborations and exchanges to strengthen their bilateral relationship.