RCEP may boost Cambodia-Indonesia trade but limited scope in textiles

Cambodia’s apparel exports to Indonesia were worth $22.292 million in 2019, which fell to $14.156 million in 2020 due to the pandemic. The shipment increased to $16.144 million in 2021 and amounted to $14.781 million in the first ten months of 2022, according to Fibre2Fashion’s market insight tool TexPro. The exports in the full year 2022 may surpass the figures of 2021 but may not reach the pre-COVID levels. Cambodia’s apparel imports from Indonesia were negligible. 

Cambodia’s home textile exports to Indonesia jumped to $2.086 million in 2020 but ended up being negligible in 2021 and 2022. Its import of home textiles from Indonesia was also insignificant, as per TexPro. 

Cambodia and Indonesia expect to increase their bilateral trade to $1 billion this year as the latter becomes the latest member to join the RCEP. As far as the textile sector is concerned, both countries are competitors in the world market. Bilateral trade between Cambodia and Indonesia of apparel, fabrics and yarn was limited and need based.

Coming to the textile trade, Cambodia’s export of fabric to Indonesia increased in the recent years, reaching $9.998 million in the first ten months of 2022 against $7.329 million in 2021 and $2.575 million in 2020. Fabric imports from Indonesia to Cambodia were at $11.308 million in 2020 but declined to $7.864 million in 2021 before falling further to $3.976 million in the first ten months of 2022. Yarn imports from Indonesia to Cambodia noticed a downtrend in the recent years. 

Fibre2Fashion News Desk (KUL)