Construction
workers prepare a steel gantry for an overpass on Hun Sen Boulevard in the
Meanchey district of Phnom Penh on June 13. Heng
Chivoan
Cambodia imported nearly $306 million worth of iron and
steel in the first 10 months of 2023, a slight increase from the same period in
2022. However, the import value in October fell by more than 15% year on year,
according to the General Department of Customs and Excise of Cambodia (GDCE).
From January to October 2023, imports of goods classified under
Harmonized System (HS) Code 72, which include iron and steel, totalled $305.97
million, up 1.4% from $301.87 million in the same period of 2022. The amount
equates to 1.5% of the country’s total import value of $20.07 billion for the
interval.
For October alone, Code 72 imports amounted to $25.44 million,
down 15.4% from $30.09 million in October 2022, according to the GDCE.
Chiv Sivpheng, general manager of the Cambodia Constructors
Association (CCA), stated that despite improvements in the global economic
situation and increased travel compared to the Covid-19 epidemic, the recovery
of the country’s construction industry requires more time, as the sector typically
takes longer to recover than others. He noted that the completion of large
projects also takes longer.
He said that the global economic and political crisis over the
past four years has disrupted or halted the construction of many large projects
in every country.
“When the construction sector is underperforming, the demand for
construction materials such as steel, cement, floor tiles, wiring and
electrical equipment also decreases,” he stated.
“The slowdown in construction, as well as the growth in domestic
production, may be the main reasons for the small increase in … imports over
the period,” he added.
He also mentioned that purchases of Code 72 products from abroad
are likely to increase from 2024 onwards, as economic growth and tourism may
boost activity. He added that most of the iron and steel used in the sector are
imported from Vietnam, China and Thailand.
Im Seng Hour, branch manager of Century 21 Zillion Holding in
Sihanoukville, noted the gradual return of foreign investors, particularly from
Indonesia and China. He said this has spurred some unfinished construction
sites in Preah Sihanouk province to recommence after having been dormant for
over three years. The effort aims to meet the growing demand for rental
business locations.
“In recent times, I
have noticed that buildings left unfinished for the last two-three years have
started to be rebuilt due to the increasing demand for rent, especially from
Indonesian and Chinese investors, for both accommodation and business,” he
said.