Cambodia now EU’s largest bicycle exporter

Cambodia’s Office of the Council of Ministers has delivered an update on export trade, revealing $505 million worth of bicycle goods to have been shipped in H1, 2022.

Heng Sokkung, Secretary of State and spokesman for the ministry said in a press conference “Cambodia is the world’s fifth largest exporter in the bicycle industry and the number one exporter to the European Union.”

The Southeast Asian country has played its part in filling a void left by a decline in Chinese exports, affected by anti-dumping duties, among other headwinds. These challenges, paired with rising labour costs and shipping issues have prompted waves of investment both in the rest of Asia, but also in Europe, drastically changing the picture of where Europe sources its bicycle goods, in particular electric bikes.

“Before 2020, China was the number one exporter to the European Union, followed by Taipei city. But it changed from 2020 as Cambodia became the largest exporter of bicycles to the EU, accounting for 24 percent of the EU’s total imports, followed by China at 17 percent and Taipei at 11 percent,” Sokkung told local news outlets.

Cambodia has 13 large scale industrial bicycle producers, according to the Minister, who spoke of an $112 million investment in the country’s production. All of these are said to carry Chinese investment, somewhat maintaining the countries dominance in cycle industry trading.

Aside from the EU and UK, other substantial importers of Cambodia bicycle goods include the United States, China, Australia and Canada.

The UK, with Brexit now factored in, has opted to diverge from European policy by not continuing a partial suspension of the EU’s preferential system within the Everything But Arms framework. Cambodia now operates within the UK GSP Least Developed Country Framework, resulting in nil rate import duty on all goods outside of ammunition. Cambodia is listed as a UK Generalised Scheme of Preferences nation as part of the Least Developed Countries framework.

For those looking at the UK market in particular, fresh sales data gathered from retail tills has shown a slowdown across most sectors. In the first half of 2022 the market volume and value dipped, both by over a quarter when compared year-on-year.