This has been a boon for the local manufacturing sector, with foreign multinationals setting up companies in Cambodia or building a supply chain in the country.
The same effect has been seen in other countries with LDC status including Bangladesh and Laos.
As a member of the Association of South-East Asian Nations and its free trade area, items of Cambodian origin are subject to tariffs of only 0-5% with other members of the association.
Association of South-East Asian Nations
More than 60% of Cambodia’s 2012 exports were made up of textiles, primarily finished garments rather than fabric.
Somewhat surprisingly, the second largest Cambodian export is postage stamps, followed by gold.
Postage stamps accounted for US$1.64bn of Cambodia’s US$12bn of exports in 2012.