Latest news with #Chanthol
The Star
a day ago
- Business
- The Star
Cambodia urges investors to remain calm, trust govt, as US tariff negotiations ongoing
PHNOM PENH: A senior Cambodian government official has called on all investors to remain patient and allow working groups to continue reciprocal tariff negotiations with the United States. His call followed the lowering of proposed US tariffs on Cambodian imports from 49% to 36%. The latest tariffs, announced by the administration of President Donald Trump, are set to take effect on Aug 1. Sun Chanthol, first vice-president of the Council for the Development of Cambodia (CDC), made the appeal during a July 8 press conference, held at the CDC headquarters. He urged all factory/business owners and investors in Cambodia to remain calm and trust the Royal Government as it seeks further solutions regarding the newly adjusted US tariffs. 'I want to take this opportunity to call on companies with factories in Cambodia to stay calm. The government of Cambodia has all the capabilities to protect employers, employees and our national interests,' he said. According to Chanthol, the 36% tariff rate will officially take effect on Aug 1, unless further negotiations with the US are held. However, Cambodia is already prepared, whether to negotiate directly in the US or online, to try to further reduce the rate below 36% and expand trade opportunities between the two countries. According to the General Department of Customs and Excise (GDCE), in the first five months of 2025, Cambodia-US trade reached $4.48 billion, a 27% increase, with exports from Cambodia valued at $4.35 billion (up 27%) and US imports at $120 million (up 25.6%). In 2024, Cambodia-US trade totalled $10.18 billion, up 11.2%, with Cambodian exports to the US at $9.9 billion (up 11.4%) and US imports at $264.14 million (up 2.7%). Chanthol noted that despite rising tariffs from the US government against many countries globally, Cambodia continues to attract growing foreign investment. From January to July 4, the CDC approved 396 investment projects with a total value of approximately $6 billion, creating about 271,000 jobs. This figure is close to the 414 investment projects approved in 2024. He emphasised that Cambodia still has opportunities to attract more direct investment. Lim Heng, vice-president of the Cambodia Chamber of Commerce, told The Post on July 9 that the US government's decision to reduce reciprocal tariffs from 49% to 36% represents a major diplomatic success for Cambodia. He noted that while most other countries saw only minor improvements or even increases in tariffs, Cambodia achieved a significant reduction. 'This is a great achievement for Cambodia. While many Asian countries face similar or even higher tariffs, the US tariff increases will make goods in the US market more expensive. This could impact American consumers and potentially open more room for further negotiations,' he said. 'Although the tariff hikes will impact Cambodia, the country also has strong export markets in Europe, the UK, the Middle East and RCEP countries,' he added. On Vietnam's 20% tariff rate, Heng acknowledged that the lower rate benefits Vietnam, but he believes it will not significantly harm Cambodia's export sector, especially in garments and textiles. In fact, in the past two-three years, some Vietnamese factories have relocated to Cambodia due to rising labour costs in Vietnam. At the same time, Vietnam's industry is shifting from textiles to mid-tier industries like electronics and component manufacturing. 'Therefore, Vietnam's lower tariff rate won't have a major negative impact on Cambodia's exports (especially garments) to the US,' he said. With extensive experience in agricultural investment, Heng added that Vietnam's low tariffs could actually boost demand for raw materials and semi-finished products from Cambodia, particularly agricultural goods, which Vietnamese companies could process further for re-export to the US. Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), said that despite the recent success in negotiating a tariff cut with the US, the Cambodian government remains committed to further discussions to gain additional benefits. 'Cambodia still has around three weeks left to negotiate further with the US — this could include easing import conditions, increasing purchase orders or facilitating American businesses wishing to operate in Cambodia — before the 36% tariff officially takes effect on August 1,' he noted. - The Phnom Penh Post/ANN
The Star
2 days ago
- Business
- The Star
Cambodia urges U.S. to further lower tariffs
PHNOM PENH, July 8 (Xinhua) -- Cambodia on Tuesday called on the United States to further lower tariffs it has imposed on Cambodian products exported to the U.S. market. The United States on Monday revised tariffs on Cambodian exports to 36 percent, taking effect on Aug. 1. The new tariff marked a reduction from the 49 percent it imposed on April 2. Cambodian Deputy Prime Minister Sun Chanthol, who serves as chief negotiator for tariffs with the United States, said the kingdom will continue to negotiate with the United States, hoping that the latter will further lower the tariffs. "We will try to negotiate as much as possible to get the lowest tariff rate for the interests of our nation," he said at a press conference here. "We are still on the (United Nations) list of Least Developed Countries (LDCs), so the U.S. should understand this and give us an opportunity to progress forward to the graduation from the LDC status in 2029," he added. Meanwhile, Chanthol urged manufacturers in the kingdom to stay calm, saying that the government is capable enough of protecting the interests of the nation, employers and employees. Kin Phea, director-general of the International Relations Institute of Cambodia, an arm of the Royal Academy of Cambodia, said U.S. tariffs on goods imported from Cambodia and dozens of other countries highlighted selfishness, protectionism, unilateralism of the United States. "U.S. tariffs are a lose-lose game that can escalate trade tensions and provoke retaliatory measures from other countries, ultimately damage international trade relations," he told Xinhua. "These tariffs raise the cost of imported goods for consumers and businesses, leading to higher prices and reduced purchasing power," he added.
The Star
3 days ago
- Business
- The Star
Work on bridge across Mekong River in Cambodia's Kratie province nears completion
The bridge will be open temporarily for motorcycles and family cars during the Pchum Ben Festival, or Ancestor's Day, in late September. - Instagram PHNOM PENH: Work on a China-funded bridge across the Mekong River in northeast Cambodia's Kratie province neared completion after two and a half years of construction, said a press release from Cambodia's Ministry of Public Works and Transport on Monday (July 7). A ceremony for connecting the final segments of the bridge was held on Monday, the press release said. The 1,761-metre-by-13.5-metre bridge, along with a 31.69-km connecting road, is being constructed by the Shanghai Construction Group under China's preferential loan. "By the end of June 2025, 96 per cent of the bridge construction has been completed," Cambodian Deputy Prime Minister Sun Chanthol said. According to Chanthol, the bridge will be open temporarily for motorcycles and family cars during the Pchum Ben Festival, or Ancestor's Day, in late September. The bridge is another fruit of close cooperation between Cambodia and China under the Belt and Road Initiative. "This project will importantly contribute to connecting Cambodia's interior transportation system, promoting the growth of transportation in the areas of agriculture, agro-industry and tourism in the northeastern provinces," Chanthol said. The project would contribute to promoting Asean connectivity and the Lancang-Mekong subregion connectivity, the official said. - Xinhua
The Star
28-04-2025
- Automotive
- The Star
Chinese EV giant BYD starts to build vehicle assembly plant in Cambodia
PHNOM PENH, April 28 (Xinhua) -- Chinese electric vehicle manufacturer BYD on Monday began to build an automotive assembly plant in Cambodia, the Council for the Development of Cambodia (CDC) said in a press release. Cambodian Deputy Prime Minister and CDC First Vice-Chairman Sun Chanthol attended the groundbreaking ceremony for the plant at the Sihanoukville Special Economy Zone in the southwestern coastal province of Preah Sihanouk, the press release said. Chanthol said the assembly plant was another fruit of close Cambodia-China cooperation, particularly under the Belt and Road Initiative. "The presence of BYD company in Cambodia is a testament to Chinese investors' confidence in Cambodia's business and investment environment," he said. Chanthol is confident that the plant will be a venue for the transfer of technical skills and new technology in the EV sector to Cambodian talents. Thong Mengdavid, a lecturer at the Institute for International Studies and Public Policy of the Royal University of Phnom Penh, said BYD's assembly plant project in Cambodia marked a strategic move to tap into the country's growing industrial capacity and EV market in the Association of Southeast Asian Nations. "It aligns with Cambodia's ambitions to become a regional automotive hub while benefiting from trade advantages under the Regional Comprehensive Economic Partnership," he told Xinhua. He said China's EV expansion contributes to global carbon reduction by promoting cleaner transport. "Strengthening green energy infrastructure is crucial to maximizing EV benefits in Cambodia and other emerging markets," he said. BYD is the most popular EV brand in Cambodia, followed by Japan's Toyota and America's Tesla, according to the Ministry of Public Works and Transport. Cambodia registered a total of 2,253 EVs in 2024, a rise from 313 in the year before, the ministry said. The Southeast Asian country aims to increase the number to 30,000 by 2030, the ministry added.
