Cambodia stands at number six with the highest bag export in the world with the U.S GSP

Ministry of Commerce and Manufacturers Association of Cambodia (GMAC) expressed enthusiasm and optimism due to the fact that the nation will attract more investments on the bag manufacturing industry. After the U.S has provided the nation with preferential imported rate at zero percent, Cambodia stands in number six among countries with the highest bag export in the world.

The U.S GSP for Cambodia has been implemented since 1^st July 2016 onward. Every bag product manufactured in the country can be legally imported into the United States without taxes.

GMAC chairman, Mr.Van Soeang, said on 6^th July 2016 in a press conference about the exemptions for travel bag material produced in Cambodia, “Cambodia stands at number six in the world with the highest bag export while China stands at number one followed by India, Philippines, Indonesia and Thailand,” “Cambodia’s bag export earned more than 50 million dollars in 2015” added Mr. Van Soeang.

“The GSP exports to the US have advantaged for Cambodia over China, India and other countries that have no tax incentives, therefore, it is a great opportunity to attract more investors to invest this sector, ended Mr. Van Soeang.

Minister of Commerce, H.E. Pan Sorasak, said that Cambodians will be able to find jobs particularly from the bag production industry which will feed 50 thousand lives. Moreover, the US tax incentives will help the local people to get more and more job opportunities from manufacturers of textiles, clothing as well as footwear.

The minister added that bag product tax rate had been from 4.5 percent to 20 percent before implementing the U.S GSP and now with the GSP, the country’s economy will be more vigorous to compete with developed countries.

Under the GSP program, approximately 5,000 products from 122 developing countries and 43 other least developed countries received tax exemptions from the U.S, and more than 1,500 goods from some least developed countries also benefit tax exemptions to Cambodia.

In 2015, goods imported into the United States without taxes under the GSP program worth a total of 17.4 billion US dollars.