Phnom Penh: Cambodia’s manufacturing sector is poised to gain significant advantages if the United States imposes tariffs on China to address its trade deficit, according to a managing partner of Mekong Strategic Capital. Stephen Higgins articulated these insights during a recent webinar hosted by Cambodia’s Institute of Directors.

According to Agence Kampuchea Presse, Higgins, who is also a co-founder of the Phnom Penh-based investment and advisory firm, discussed the broader implications of U.S. President Donald Trump’s trade policies. Trump, now in his second term, has been focusing on China and potentially Vietnam, which could lead to a shift in manufacturing to Cambodia. Higgins noted that Trump had previously labeled Vietnam as a “currency manipulator” towards the end of his first term, suggesting a potential extension of tariffs to Vietnam as well.

The discussion also touched on the complexities of U.S. trade policies, including possible crackdowns on companies moving production from China to other countries. Higgins warned that while Cambodia might initially benefit from these shifts, there could be adverse effects if Chinese inputs, such as those in garment manufacturing, face U.S. tariffs. These second or third-order effects could ultimately harm Cambodia due to its economic linkages with Chinese companies.

Higgins further emphasized Cambodia’s favorable demographic trends, projecting a 24 percent growth in the working-age population between 2021 and 2050. This contrasts sharply with Vietnam’s 1 percent growth and significant contractions in China and Thailand. Despite this demographic advantage, Higgins pointed out the need to address Cambodia’s international image, particularly concerning reports on corruption and rule of law, which deter investors and tourists.

To improve “Brand Cambodia,” Higgins, a former chief executive of ANZ Royal Bank, advocated for a crackdown on scam centers and a robust international marketing campaign. He stressed the importance of showcasing Cambodia’s offerings to international journalists to generate positive publicity. Additionally, he called for a more sophisticated approach in how Cambodia presents itself globally, noting that current communications often fall short in their effectiveness.