Cambodia's trade growth boosts leather, footwear outlook
LW Desk
Cambodia's trade with ASEAN (the Association of Southeast Asian Nations) and the European Union climbed to US $13.3 billion in the first half of 2026, reflecting continued growth in regional and international commerce, according to a Ministry of Commerce report released on 20th July.
Trade with fellow ASEAN member states totalled US $10.3 billion between January and June, representing a 21.8% year-on-year increase, while trade with the EU grew 8% to US$3 billion over the same period.
Cambodia's overall global trade reached US$38.2 billion in H1 2026, with ASEAN accounting for 27% of total trade and the EU contributing 7.8%.
Commenting on the performance, Thong Mengdavid, Deputy Director of the China -ASEAN Studies Center at the Cambodia University of Technology and Science, said the strong growth in trade with ASEAN reflects the region's increasing economic integration.
"Looking ahead, trade with ASEAN is expected to sustain double-digit growth, supported by improving regional demand, rising cross-border investment, and the continued expansion of regional manufacturing networks," told Mengdavid.
The continued expansion of regional manufacturing networks is expected to provide a favourable environment for Cambodia's footwear, leather goods and travel goods industries, improving market access, sourcing opportunities and supply chain integration across ASEAN.
Mengdavid also underscored the importance of the European Union as a premium export destination for Cambodia's manufacturing sector.
"The EU remains a crucial, high-value export market for Cambodia, particularly for garments, footwear, travel goods, bicycles, electronics, and agricultural products " said Mengdavid.
He added that strengthening higher-value manufacturing would further improve the country's export competitiveness. Looking ahead, Mengdavid believes ASEAN will continue to be the primary engine of Cambodia's trade expansion, while the EU will remain instrumental in supporting export diversification and the growth of higher-value industries, including footwear and leather-related manufacturing.
