Cambodian exports to the United States rose sharply during the first three months of the year.

There was a marked increase in shipments of travel goods after the US renewed its Generalized System of Preferences in March.

Cambodian exports during the first quarter of the year rose 25.5 per cent. The bulk of that growth belonged to travel goods, a category that has attracted a large number of investors after Cambodia was granted duty-free benefits for travel goods exports under the US’ GSP program in 2016.

Orders for garment and footwear products have remained stable.

The ongoing US-China trade dispute also presents a tantalising opportunity to increase exports to the US, the biggest market for Cambodian garment and footwear products.

As barriers to export to the US increase in China, investors from the US will turn to other countries to invest and to set up factories from which they can import. Cambodia can take advantage of this situation. Also the recent tax reform in the US means a buoyant economy. This multiplies opportunities for exporters in Cambodia.

However, Cambodia needs to undergo deep structural reforms, including improving its competitiveness by reducing the cost of electricity and transportation, as well as streamlining and facilitating trade procedures and diversifying its industry.