Cambodia’s exports surge past $8bn in Q1

Cambodia has posted a sharp rise in exports at the start of 2026, with overseas sales topping $8 billion in the first quarter – a 17.7 percent increase on last year. The United States remains the Kingdom’s biggest market, accounting for nearly 40 percent of shipments.

According to the Department of Customs and Excise, exports to the US reached $3.4 billion between January and March, driven largely by garments and footwear. Vietnam followed with $1.2 billion, while Japan, China and Spain rounded out the top five destinations. Imports also climbed, up 16.7 percent year-on-year to $8.8 billion.

The figures highlight Cambodia’s growing reliance on the American market, even as trade tensions simmer. On 12 March, Washington placed Cambodia among 16 partners under investigation for alleged structural overcapacity and trade surpluses. The probe, launched under Section 301 by the US Trade Representative, focuses on the country’s strong garment exports, which have contributed to a surplus of more than $12 billion with the US.

Officials in Phnom Penh insist the sector is vital to employment, with around a million Cambodians working in clothing, footwear and travel goods. Sun Chanthol, Vice Chairman of the Council for the Development of Cambodia, has pledged to negotiate lower tariffs on these products, arguing they do not compete directly with American industries. “We will try to negotiate a rate lower than 19 percent,” he said.

In 2025, Cambodia exported roughly $30 billion worth of goods and imported $33.8 billion, bringing total trade to $64 billion. The US accounted for nearly a third of exports, underscoring its role as a cornerstone of Cambodia’s economy.

The latest surge suggests momentum is holding, but the Section 301 investigation could cast a shadow over future growth. For now, the Kingdom is banking on its competitive garment industry and expanding regional ties to sustain the pace.

With exports rising and the US market still dominant, Cambodia faces a delicate balancing act: maintaining access to its largest buyer while navigating mounting trade scrutiny. The coming months will show whether negotiations can ease the pressure – or whether the boom risks being tempered by tariffs.

-2026-04-19