US Drives Exports, China Dominates Imports, While Vietnam Delivers a Rare Trade Surplus for Cambodia
MARKET INSIDER – Cambodia’s economy is quietly becoming one of Southeast Asia’s most dynamic trade stories. The country’s total international merchandise trade exceeded $30 billion in the first five months of 2026, highlighting the growing importance of its manufacturing sector and its deepening integration into global supply chains. While geopolitical tensions and economic uncertainty continue to cloud the global outlook, Cambodia’s export engine remains firmly in motion.
According to data released by Cambodia’s General Department of Customs and Excise (GDCE), total trade reached $30.08 billion between January and May 2026, up 18.9% year-over-year. Exports rose 19% to $14.04 billion, while imports climbed 18.9% to $16.04 billion, resulting in a trade deficit of nearly $2 billion.
The United States remained Cambodia’s largest export destination by a wide margin, importing $5.73 billion worth of Cambodian goods during the period, a sharp 31.5% increase from a year earlier. With imports from the US totaling just $231 million, Cambodia generated a substantial $5.5 billion trade surplus with the world’s largest economy. Garments, footwear, travel goods, bicycles, furniture, and other manufactured products continue to dominate exports to American consumers.
China, meanwhile, retained its position as Cambodia’s largest overall trading partner, with bilateral trade reaching $9.39 billion. However, the relationship remains heavily imbalanced. Cambodian exports to China totaled only $753 million, compared with $8.64 billion in imports, leaving Cambodia with a trade deficit of nearly $7.9 billion. Chinese machinery, industrial equipment, construction materials, and manufacturing inputs remain critical to Cambodia’s export-oriented industrial expansion.
Vietnam ranked as Cambodia’s third-largest trading partner, underscoring the growing economic interdependence between the two neighboring countries. Bilateral trade reached $4.11 billion, with Cambodia exporting $2.32 billion worth of goods and importing $1.78 billion, resulting in a $544 million trade surplus. Agricultural products, processed foods, and intermediate industrial goods continue to drive cross-border commerce, reflecting increasingly integrated regional supply chains.
The data also points to Cambodia’s expanding global footprint. Trade with Japan rose 17.2%, while commerce with Singapore surged more than 242%, signaling increased investment-related imports and stronger regional connectivity. In Europe, Spain, the Netherlands, France, and Belgium all recorded strong growth in imports from Cambodia, reinforcing the European Union’s role as a critical destination for Cambodian exports.
Economists view the strong performance as evidence of resilient industrial activity and rising domestic demand. Cambodia’s manufacturing sectors—including garments, footwear, electronics, bicycles, and travel goods—have benefited from foreign direct investment and ongoing diversification efforts. Rising imports of machinery and production inputs further suggest that export-oriented industries continue to expand despite a challenging global environment.
The bigger story may be that Cambodia is evolving from a low-cost manufacturing hub into a more integrated player within Asia’s supply-chain network. As companies continue to diversify production beyond China and seek new growth markets in Southeast Asia, Cambodia’s accelerating trade growth could offer an early glimpse of the region’s next economic success story.
