Cambodia’s Bicycle Exports Hit 1.5 Million Units So Far This Year
 
Nov 06, 2020
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Cambodia has become a new global hub for bicycle production, with 1.5 million units exported in the period between January and September, latest figures of the country’s ministry of commerce show.

According to the data, Cambodia shipped 1.5 million bicycles in the period, more than half of them to the European Union. This created total export value of €339 million, according to the Khmer Times.

In the first nine months of the year, export volumes amounted to 360,000 units to Germany, 150,000 to Belgium and 90,000 to the Netherlands.

However, while Cambodia still holds the leading position as supplier of regular bicycles to the European Union, import volumes are declining. The latest Eurostat data of earlier this year showed a seven per cent decrease in regular bicycles imported from Cambodia from January to May, most likely as a result of Covid-19 restrictions.

Cambodia became the largest regular bicycle supplier for the European Union in 2017, overtaking Taiwan, which had held the number one spot for two decades. This is mainly attributed to the fact that a number of Taiwanese bicycle makers moved their production to Cambodia to benefit from the low wages there.

Exports to the European Union under threat

However, the industry is under pressure as the European Union formally informed Cambodia in February this year that it will amend the preferential preferential trading terms because of the country’s poor record on human rights and rule of law.

As of August, some of Cambodia’s typical export products such as garments, footwear and travel gear have become subject to European Union customs duties for this reason.

Extended to bicycles, there could be serious implications on Cambodia’s main bicycle assemblers such as Strongman, A&J and Asama.

by Arno Maierbrugger