Over 100 stakeholders join dialogue on Cambodia’s export strategy, regional collaboration, and practical tools for post-LDC transition.
Executive Summary
On March 28, 2025, ASEAN-Japan Centre (AJC), in collaboration with the Ministry of Commerce of Cambodia, held a hybrid workshop titled “Cambodia Trade: Looking Ahead to the LDC Graduation in 2029” in Phnom Penh. The event brought together over 100 participants from government and business sectors to discuss the changing trade landscape, share good practices from ASEAN neighbors, and build capacity in leveraging Free Trade Agreements (FTAs). The event included G2G sharing, a panel discussion, hands-on training on Rules of Origin (ROO), and 1-on-1 advisory sessions.
Background
Cambodia is scheduled to graduate from Least Developed Country (LDC) status by 2029, which will phase out several preferential trade treatments. To ensure a smooth transition, Cambodia must strengthen its export competitiveness, especially through better utilization of FTAs such as the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) and the Regional Comprehensive Economic Partnership (RCEP). AJC organized this workshop to support inclusive, resilient trade through practical engagement and experience sharing.
Objectives and Goals:
- Raise awareness among Cambodian stakeholders on the implications of LDC graduation
- Share best practices from Japan, Vietnam, and Thailand on FTA utilization and trade promotion
- Provide practical training on Rules of Origin and Certificate of Origin (CO) applications
- Identify MSME needs and promote regional collaboration for trade readiness
Activities and Highlights
- Opening Session: Cambodia’s Ministry of Commerce stressed the urgency of trade resilience and called for regional and Japan partnerships in agriculture and handicraft sectors
- G2G Sharing:
- Japan (METI): Explained RCEP benefits and Japan’s high FTA utilization rates
- Vietnam (VIETRADE): Shared trade promotion mechanisms and collaboration with Cambodia
- Thailand (DITP): Introduced SME support models and highlighted agri-food safety and innovation
- AJC Business Insight: Assistant Director Ishida highlighted FTA underutilization (11.26%) and shared market-specific strategies for Japan, including product repositioning and packaging standards
- Panel Discussion: Discussed expanding to niche markets and the potential for trilateral cooperation (Cambodia-Vietnam-Laos)
- ROO Training: Ministry experts explained technical details on FTA rules, CO issuance, and Cambodia’s new ROO Law (2023)
- 1-on-1 Business Consultations: Cambodian MSMEs requested support in product design, processing tech, and Japan buyer access
Outcomes and Impact
- Over 100 participants from the private and public sector gained practical insights and training on FTA utilization
- Strengthened institutional collaboration with Cambodia’s Ministry of Commerce
- Identified MSME needs for design, branding, and compliance
- Enhanced AJC’s role as a trusted partner in Cambodia’s trade transition
- Initiated dialogue for trilateral cooperation among Cambodia, Vietnam, and Laos
Key Takeaways
- Cambodia’s MSMEs show strong interest in Japan but lack familiarity with FTA procedures and market standards
- Hands-on training and direct advisory formats are effective for capacity building
- Product design and branding are key to unlocking new markets, especially in handicrafts and food
- Online tools such as Cambodia’s CO system need broader communication and training support
Way Forward and Engagement
- Develop targeted workshops for:
- Product design and sustainable packaging (handicrafts)
- Branding and marketing (agri-products)
- CO application and digital trade systems
- Explore pilot projects for Cambodia under AJC’s Japan Market Entry Programme
- Facilitate trilateral activities in agro-tech, rural branding, and joint trade fair booths (Cambodia-Vietnam-Laos)
Interested in supporting Cambodia’s trade transition or joining future workshops? Contact the ASEAN-Japan Centre or visit www.asean.or.jp
