Hong Kong trade drops in line with textile woe

(Posted by CAAI News Media)

Friday, 11 December 2009 15:02 May Kunmakara

BILATERAL trade between Cambodia and Hong Kong fell 24.1 percent year-on-year during the first 10 months of 2009 to US$403 million, figures released Wednesday by the Hong Kong Trade Development Council (HKTDC) show.

Cambodia’s exports to Hong Kong grew 33.9 percent to $11 million, and Hong Kong’s exports to Cambodia fell 25 percent to $392 million, leaving the Kingdom with a $380 million trade deficit.

Most trade between the two countries consisted of re-exports. More than half of Cambodia’s exports to Hong Kong were re-exported, and just $17 million worth of goods imported from Hong Kong were actually produced there.

HKTDC Director Tina Phan was not available for comment Thursday.

Ministry of Commerce Secretary of State Ok Boung said the decline in imports from Hong Kong was in line with falling exports from Cambodia to its major trade partners, particularly the US. “Frankly, this downturn has occurred with all countries due to the affect of global economic crisis,” he said.

Aside from telecommunications parts and equipment, the bulk of Cambodia’s imports from Hong Kong are raw materials for its garment sector, which has been hit hard by falling consumer demand in the US and EU. Cambodia’s garment exports fell 21.66 percent over the first nine months of the year to $1.78 billion, according to the latest available figures from the Ministry of Commerce.

Two-way trade between Cambodia and Hong Kong reached a peak of $631 million in 2007 before declining slightly last year, HKTDC figures show.