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Key Imports and Market Opportunities in Southeast Asia

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South-east Asia presents a dynamic and diverse trade landscape, making it a key region in global commerce. 

In 2022, the Association of South-east Asian Nations (ASEAN) economy reached a nominal Gross Domestic Product (GDP) of approximately US$3.6 trillion, positioning it as the fifth-largest economy worldwide, according to ASEANstats. 

ASEAN comprises ten countries – Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, each contributing uniquely to the overall economic landscape. 

Given its strategic location and expanding consumer base of about 660 million, South-east Asia offers considerable opportunities for businesses looking to grow their market presence. 

To help businesses leverage these prospects, we’ve provided a comprehensive overview of key imports and market opportunities below. 

Understanding Cambodia's trade ecosystem

Cambodia's exports and imports are critical to its economic vitality and South-east Asia integration.

Notably, Cambodia’s main exports include textile goods, which account for around 70% of the country’s total exports according to data from Trading Economics. Additionally, Cambodia’s export products also feature significant quantities of footwear and natural rubber. 

Interestingly, the agriculture sector also plays an important role in the economy, with the national government aiming for Cambodia to become one of the world's top ten agricultural producers. 

Data from the Asia Society Policy Institute shows that in 2023, Cambodia exported nearly 8.45 million tonnes of agricultural products, with Vietnam and Thailand among the key markets in ASEAN.

On the import side, Cambodia’s major imports include petroleum products, fabrics, and automobiles, with Vietnam and Thailand also being the country’s primary sources within the South-east Asian region. 

Cambodia's involvement in regional trade agreements, such as the ASEAN Free Trade Area (AFTA), enhances its trade relations within Southeast Asia. 

For instance, the AFTA agreement, established in 1992, aims to create a single market and production base within ASEAN. By reducing and eliminating tariffs on intra-ASEAN trade, AFTA facilitates smoother and more efficient trade flows.

Key importers in South-east Asia

Knowing the major import players in South-east Asia can help both global and Cambodian businesses identify valuable trade opportunities. Here’s a look at the key importers in the region:

1. Vietnam

Vietnam plays a pivotal role in South-east Asia, acting as Cambodia’s major trading partner in the region.

In 2022, Cambodia exported approximately US$1.3 billion worth of goods to Vietnam, including cashew nuts, cassava, rice, and rubber. Conversely, Cambodia imported goods valued over US$1.5 billion from Vietnam, including electrical and electronic devices, construction materials, fuels, and machinery.

For a broader overview, Vietnam’s major imports overall include:

  • Integrated circuits
  • Broadcasting equipment
  • Refined petroleum
  • Telephones
  • Coal briquettes

Vietnam's rapidly growing economy makes it a central hub for trade within the region. The country’s emphasis on developing its industrial sectors attracts investments and fosters economic growth, thereby providing extensive opportunities for businesses to partner with. 

2. Singapore 

While Vietnam remains Cambodia’s largest trading partner among the ASEAN countries, Singapore has emerged as a growing trading partner. The total trade value between Cambodia and Singapore reached nearly US$920 million in 2023, marking an increase of 7.1% compared to the previous year, as the Phnom Penh Post reported. 

Furthermore, according to data from the OEC, Singapore was the largest importer in South-east Asia in 2022, importing goods valued at US$424 billion, which accounts for 22.9% of the total imports of the ASEAN countries.

Its main imports include:

  • Integrated circuits
  • Refined petroleum
  • Crude petroleum
  • Gold
  • Machinery having individual functions
  • Other glass articles

Singapore's active import activities and openness to international trade create numerous business opportunities in Cambodia and beyond, particularly in the electronics, energy, and machinery sectors. 

As a leading transhipment hub, Singapore facilitates seamless trade flows through its extensive trade networks, making it a significant gateway for regional and global supply chain management. This strategic role not only supports its own economic growth but also enhances trade connectivity across South-East Asia and globally. 

3. Indonesia 

Indonesia, boasting the largest economy in South-east Asia, serves as a major hub for regional and international business trade. Its diverse market and growing industrial sector attract significant import activity, with its top imports including:

  • Refined petroleum
  • Crude petroleum
  • Petroleum gas
  • Motor vehicles and parts
  • Broadcasting equipment

These imports drive Indonesia's industrial growth and meet consumer demands. Consequently, this economic strength offers significant prospects for energy, automotive, and electronics businesses to export their products to Indonesia. 

4. Malaysia

Malaysia's strategic location between the China Sea and the Indian Ocean positions it as a key link between mainland Asia and the archipelagic nations. This advantageous spot is crucial for facilitating trade in South-east Asia and globally, enhancing the movement of both imports and exports.

Leveraging this strategic position, Malaysia has become a significant player in regional and international trade. In 2022, Malaysia imported goods worth approximately US$294.32 billion, according to Statista. The main imports include:

  • Electrical and electronics
  • Petroleum products
  • Chemical products
  • Machinery, equipment, and parts
  • Manufactures of metal

As a centre for trade and investment, Malaysia attracts businesses within and outside the South-east Asian region, providing significant potential for economic partnerships in the electronics, energy, chemical, and machinery industries.

Navigating market entry and expansion in South-east Asia

Successfully entering and expanding within South-east Asia markets requires a thorough understanding of local regulations, cultural nuances, and business practices.

One effective strategy for market entry is to align with the main imports of South-east Asian countries. For example, businesses in the electronics sector can explore opportunities in Singapore, which imports large quantities of integrated circuits and machinery. Similarly, the energy sector can target Indonesia with its substantial refined and crude petroleum imports.

However, navigating these markets also involves specific regulatory requirements. For instance, obtaining halal certification in Malaysia is essential for food-related industries to cater to the predominantly Muslim population.

Similarly, understanding cultural nuances is also crucial. In Thailand, for example, it is expected to engage in relationship-building activities before formal business discussions. Building strong relationships and adapting to local customs can significantly help businesses establish trust and credibility, which is essential for both regional and global expansion.

Making use of free trade agreements (FTAs)

Besides understanding regulations and cultural subtleties, leveraging Free Trade Agreements can facilitate smoother market entry and operations in South-east Asia. 

Notably, the Regional Comprehensive Economic Partnership (RCEP) is a significant trade agreement that includes all ten ASEAN countries, along with Australia, China, Japan, New Zealand, and South Korea. RCEP aims to lower tariffs, streamline customs procedures, and enhance market access across member countries.

In addition to RCEP, there are several other ASEAN Free Trade Agreements that can help particular countries enter the South-east Asian market:

  • ASEAN-Australia-New Zealand free trade area
  • ASEAN-China free trade area
  • ASEAN-India free trade area
  • ASEAN-Republic of Korea free trade area
  • ASEAN-Japan comprehensive economic partnership

By leveraging these FTAs, businesses can gain better access to regional markets, reduce tariffs, and enjoy a more favourable business environment for expansion. 

Aligning with local practices, utilising regional partnerships, and understanding specific market demands will enable businesses in Cambodia and beyond to tap into the vast opportunities South-east Asia offers effectively.

Leveraging logistics for successful trading in South-east Asia

In the dynamic landscape of South-east Asian trade, efficient logistics and global supply chain management are key to capitalising on market opportunities. 

For businesses in Cambodia aiming to tap into the region’s potential, timely delivery, cost efficiency, and reliable service are critical for success. Therefore, optimising the supply chain is essential for meeting overseas shipping requirements and market demands, and staying competitive.

Navigate South-east Asian trade with ease

Expanding business regionally and internationally requires strategic planning and effective logistics solutions. To fully capitalise on the opportunities within the ASEAN trade market, consulting with DHL Express Cambodia can provide invaluable support. 

Our team offers personalised logistics solutions and insights into navigating the trade complexities of South-east Asia, fostering successful business growth and expansion.

With extensive worldwide customs knowledge and experience, particularly in the South-east Asian region, DHL Express can facilitate seamless market entry. Moreover, our diverse shipping options, from express shipping services to On-Demand Delivery (ODD), cater to the varied needs of the ASEAN consumer market.

Consult with DHL Express to explore the vast opportunities within South-east Asia and achieve sustainable business growth through effective logistics and international shipping solutions.


Open a business account with DHL Express Cambodia today to get started.