[INNEWS Comprehensive Report] On October 17, the Cambodian Ministry of Commerce announced that the European Union has allowed Cambodia to use raw materials or bicycle parts from Vietnam to produce bicycles locally, and these bicycles can be exported to the EU.
The Ministry of Commerce pointed out that this decision was made in response to Cambodia’s application and satisfied the requirements of the accumulation rules applicable to Vietnam. The European Commission decided to give special approval to this rule. This rule allows Cambodia to use bicycle raw materials or parts from Vietnam to produce bicycles and then export them to the EU.
In addition, all bicycle manufacturers or exporters must apply to the Ministry of Commerce for a license to import bicycle raw materials or parts from Vietnam every six months, and report the consumption of raw materials or parts every quarter for the Ministry of Commerce to notify the EU.
Pan Sovichea, State Secretary and Spokesperson of the Ministry of Commerce of Cambodia, pointed out that this initiative will make Cambodia’s bicycle export market more convenient.
According to relevant reports, from January to September 2023, Cambodia’s bicycle export revenue exceeded US$424 million, a 42% decrease from US$742 million in the same period in 2022. The main markets for Cambodia’s bicycle exports are the United States, Germany, Belgium, the United Kingdom and the Netherlands, while Cambodia also imports bicycles from Japan, China, Vietnam, Thailand and the United States.