Core Insights - The trade landscape in the Asia-Pacific region is rapidly restructuring due to the impact of U.S. tariffs, significantly affecting countries heavily reliant on the U.S. market [1][4] - Vietnam and Cambodia are identified as the most severely impacted economies, with export declines projected at 19.2% and 23.9% respectively, far exceeding the regional average of 6.4% [1][2] - The report emphasizes the urgent need for market diversification and internal strengthening strategies for affected countries [3][5] Group 1: Economic Impact - Vietnam's economy is heavily dependent on exports, with 36.6% of its exports directed to the U.S., primarily in low-value-added sectors like apparel and electronics [1] - Cambodia's exports are 58% reliant on the U.S., with significant portions in labor-intensive industries such as clothing and footwear, which are directly targeted by U.S. tariffs [2] - Other vulnerable economies in the region, such as Fiji and Sri Lanka, are also facing substantial export declines of 19.6% and 15% respectively due to their concentrated export structures [2] Group 2: Strategies for Adaptation - Market diversification is critical, with Vietnam seeking to enhance cooperation with economies like South Korea and the EU, while Cambodia aims to expand exports to the EU under the EBA initiative [3] - Regional economic integration within ASEAN is highlighted as a potential buffer, although challenges such as non-tariff barriers and infrastructure gaps remain [3] - Both Vietnam and Cambodia are attempting to increase industrial value through technological innovation and investment in high-tech sectors, despite facing significant obstacles in talent development and infrastructure [3] Group 3: Social Safety Nets - Strengthening social security systems is essential, with Vietnam revising labor laws to expand unemployment insurance and Cambodia implementing cash transfer programs for vulnerable families [4] - The current social safety nets in both countries are inadequate to cope with large-scale unemployment and economic shocks [4][5] - The challenges faced by Vietnam and Cambodia reflect broader trends in the Asia-Pacific region, where economies highly dependent on external markets are encountering unprecedented difficulties [4][5]

Core Points - The U.S. tariff policy is creating a crisis for small businesses, leading to increased costs, supply chain disruptions, stifled innovation, and decreased market competitiveness, forcing layoffs and potential market exit [2] - Approximately 100 small business owners gathered in Washington D.C. to express the negative impact of tariffs imposed by the Trump administration on their livelihoods [2] - Since the beginning of the year, the Trump administration has imposed a 10% comprehensive tariff on nearly all trade partners, with higher tariffs on specific economies like the EU and Vietnam, as well as on certain industries such as steel and aluminum [2] Group 1 - Small businesses are struggling to adapt to the rapidly changing policies of the Trump administration, with some shifting production from China to India only to face a 50% tariff on Indian products [2][3] - Business owners report feeling economic pressure, with some unable to continue operations due to the burden of tariffs eroding profits [3] - A Texas-based bag store owner highlighted that 17 out of the top 20 brands in her store have raised prices, adding uncertainty to business prospects and risking customer acceptance of higher retail prices [3] Group 2 - The U.S. government's tariff policy is currently facing legal challenges, with a federal appeals court upholding a lower court's ruling that the Trump administration's use of emergency economic powers to impose tariffs is overreach [2][3] - The court has allowed the tariffs to remain in place until mid-October, pending a Supreme Court hearing on the legality of the global tariffs scheduled for November 5 [3]

Core Points - The U.S. tariff policy is creating a crisis for small businesses, leading to increased costs, supply chain disruptions, stifled innovation, and decreased market competitiveness [2] - Approximately 100 small business owners gathered in Washington D.C. to express their grievances regarding the impact of tariffs imposed by the Trump administration on their livelihoods [2] - Since the beginning of the year, the Trump administration has imposed a 10% comprehensive tariff on nearly all trade partners, with higher tariffs on specific economies like the EU and Vietnam, as well as on certain industries such as steel and aluminum [2] Group 1 - Small businesses are struggling to adapt to the rapidly changing policies of the Trump administration, with some shifting manufacturing from China to India only to face new tariffs [2] - The manager of a travel goods brand expressed frustration over the unpredictability of business operations due to fluctuating tariffs [2] - Business owners are experiencing economic pressure, with one owner stating that the tariffs have made it nearly impossible to continue operations [2] Group 2 - A Texas-based bag store owner highlighted that 17 out of the top 20 brands in her store have raised prices, adding uncertainty to business prospects [3] - The U.S. government's tariff policy is currently facing legal challenges, with a federal appeals court upholding a lower court's ruling that the Trump administration's use of emergency economic powers to impose tariffs is overreach [3] - The Supreme Court is set to hear oral arguments regarding the legality of Trump's global tariffs on November 5 [3]

Group 1 - Dongguan Ruijia Travel Goods Co., Ltd. has been established with a registered capital of 3 million RMB [1] - The company's business scope includes general projects such as bag manufacturing, bag sales, daily necessities sales, bag repair services, hardware products wholesale, plastic products sales, leather products sales, outdoor products sales, electronic products sales, goods import and export, technology import and export, and internet sales (excluding sales of goods that require permits) [1] - The company is authorized to independently conduct business activities according to its business license, except for projects that require approval by law [1]

Economic Performance - Cambodia's economy shows strong but uneven performance, with manufacturing and services growth driven by stable exports, particularly in garments and tourism[35] - Agricultural sector employment remains significant, supporting 3.1 million jobs, but its contribution to GDP growth is limited, only 0.2 percentage points in 2024[36] - Total rice production increased by 11.0% in 2024, but structural challenges persist, including reliance on weather conditions and price volatility[36] Trade and Investment - Exports to the US, especially garments, remain strong, with a year-on-year growth of 11.6% in Q1 2025, contributing significantly to consumer confidence[38] - Foreign Direct Investment (FDI) inflows are primarily from China, accounting for 65.5% of total net FDI, while domestic investment approvals have sharply declined by 96.7% year-on-year[39][43] - Total goods exports reached $26.673 billion in 2024, with a significant contribution from the garment, travel goods, and footwear sectors[43] Inflation and Monetary Policy - Inflation rose to 3.7% in March 2025, driven mainly by food price increases, while broad money supply growth reached 19.0%[38] - The banking sector reported a non-performing loan (NPL) rate of 7.9% by the end of 2024, indicating deteriorating asset quality[40] Fiscal Policy and Public Debt - Central government revenue increased by 11.2% year-on-year in Q1 2025, primarily due to significant growth in VAT and non-tax revenues[40] - Public debt remains low at 25.9% of GDP as of the end of 2024, with a projected fiscal deficit of 2.7% of GDP for 2025[41] Social Impact and Inequality - Economic recovery has been uneven, with household consumption per capita growing by 8% from 2021 to 2023, but disparities exist between income groups[42] - The poorest 20% saw a 7% increase in consumption, while the wealthiest 20% experienced a 10% increase, highlighting income inequality[42]

Core Viewpoint - Cambodia has made significant progress in its integration into the global trade system since joining the WTO 20 years ago, enhancing its economic structure, trade volume, and living standards while actively participating in multilateral trade frameworks [1][4][12]. Summary by Sections Overall Performance After 20 Years - Cambodia has fulfilled its commitments upon joining the WTO, reducing the average tariff rates for agricultural and non-agricultural products from 28.1% and 17.7% to 9.4% and an estimated 7.9% respectively by 2023 [4]. - The trade-weighted average tariff is projected to be 7.9%, with agricultural and non-agricultural tariffs at 11.8% and 7.6% respectively, leading to higher GDP growth and trade flow [4]. Legal and Regulatory Framework - Cambodia has implemented a new customs law and 25 accompanying regulations to meet WTO requirements, enhancing trade transparency and efficiency [5][6]. - A series of important laws have been revised or established to align with WTO rules, including laws on e-commerce, consumer protection, and trade remedies [6]. Economic Achievements - From 2004 to 2023, Cambodia's GDP increased from $5.3 billion to $32.17 billion, a sixfold growth, with per capita GDP rising from $464 to $1,917 [14]. - International trade has surged, with total trade volume growing from $4.5 billion to $46.82 billion, and exports increasing from $2.798 billion to $23.47 billion, averaging a 12% annual growth rate [14]. Foreign Investment and Social Development - Foreign investment has expanded from $110 million in 2000 to $4.9 billion in 2023, with manufacturing and infrastructure being key sectors [15]. - The poverty rate has significantly decreased from 60% in 2000 to 16% in 2023, with Cambodia set to graduate from the least developed country status by 2029 [15]. Challenges Ahead - Cambodia faces challenges in the current complex international environment, including the need for effective dispute resolution mechanisms within the WTO and adapting to regional trade agreements [18]. - The slowdown in economic growth among key trading partners poses risks to Cambodia's trade and foreign investment inflows [18]. Future Opportunities - Cambodia aims to leverage new opportunities while maintaining a commitment to the WTO multilateral trade system, enhancing its role in global economic cooperation [19]. - The country plans to adapt to evolving international trade rules and promote digital and green trade initiatives to ensure broader benefits [19][20].