DHL Global Connectedness Index 2024 Report - Cambodia Ranked

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Singapore claimed the top spot in the DHL Global Connectedness 2024 Report which was released in March 2024, while Cambodia ranked at 60th out of 181 countries included in the index. 

The DHL and Stern School of Business, New York University's Global Connectedness Index 2024 report looked at the state and trajectory of globalisation and tracked how trade, capital, information, and people move around the world - concluding that the current level of globalisation is only at 25 per cent. 

This means that the levels of globalisation have reached a record high, but there remains a large potential to continue growing global flows - despite the recent pandemic and geopolitical tensions. The annual report ranks the connectedness of 181 countries, which accounts for 99.7 per cent of the world's gross domestic product and 98.7 per cent of its population.  

DHL added, “Trade growth played a crucial role in boosting global connectedness. The share of global output traded internationally was back to a record high level in 2022. After a slowdown in 2023, trade growth is forecast to accelerate in 2024. The globalisation of information flows has been especially strong over the past two decades, even though the latest data show a stall in their growth, partly due to less research collaboration between the U.S. and China. Corporate globalisation is rising, with companies expanding their international presence and earning more sales abroad.”

DHL Global Connectedness Ranking 2024

Aside from index-topping Singapore, Hong Kong is ranked 10th and is the only other Asian market in the top 10 most connected list. Singapore's rating was based on its ‘depth’ due to its large international flows relative to the size of its domestic economy, as well as its "public policy to effectively integrate itself into the global economy." 

From the ASEAN region, other nations to rank in the top 100 of the Index include; Malaysia 26th, Thailand 39th, Vietnam 45th, and the Phillipines 65th. Other notable Asian inclusions are; Japan 50th, South Korea 34th, Taiwan 35th, Macau 53rd, India 62nd, and China 80th.

  • Europe is the world’s most globally connected region, followed by North America and the Middle East & North Africa.
  • The United States and China, the world’s two largest economies, ranked 44th and 80th, respectively, in the DHL classification.

 

Ken Lee, CEO for Asia Pacific, DHL Express, said of the report's findings, “Trade demands within Asia also remain strong due to the establishment of several trade agreements. As a trade facilitator, we firmly believe that globalisation is a powerful force that has huge potential to reinvigorate economic growth."

Intra-Asia Trade Flow Is Strong

DHL Global Connectedness Index 2024 Report
Image Credit: DHL Global Connectedness Index 2024 Report.

 The DHL Global Connectedness Index 2024 Report indicates that "markets in Asia Pacific are strongly connected in the region" and that 70 per cent of the countries in the region have strong flows with their Asian counterparts.

The region also has strong flows with the West and many countries count the United States or United Kingdom as their top 10 connections - for Cambodia, the US is its biggest export market.

In 2023, trade between Cambodia and the US was worth USD $9.15 billion, with Cambodian exports to the US valued at USD $8.9 billion. For the first two months of 2024, the US was also the biggest export market for Cambodia, accounting for nearly one-third of the Kingdom's total exports.

According to the report, global connections are the strongest and widest in the fields of:

  • Information and communication flow (estimated at approximately 40 per cent)
  • Capital flows follow (30 per cent)
  • Trade (22 per cent)
  • People

Cambodia Investing In Logistics and Trade

The #60 ranking for Cambodia is a drop of 9 places in the annual Index. Cambodia has entered several Free Trade Agreements (FTA) over recent years and continues to try and diversify its trading partners to boost economic growth, which is already predicted to be one of the strongest in the region for 2024.

  • Free Trade Agreements - The Regional Comprehensive Economic Partnership (RCEP) came into effect in 2023, the Cambodia-Korea Free Trade Agreement (2022), the Australia-Cambodia Business Forum​ was formed in 2024, as well as the Cambodia and the United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) enforced in Q1 2024, among others.

The DHL Global Connectedness Index 2024 Report takes into account several factors but it should be interesting to see if the development of the Kingdom's infrastructure which is hinged on improving connectivity by land, sea, and air will improve its situation over the years to come. 

Some transport and infrastructure projects under development in this respect are:

  • Funan Techo Canal - Since being announced in 2023, the ambitious USD $1.7 billion waterway project aims to connect the Phnom Penh Autonomous Port to the coastal province of Kep by cutting through four provinces — Kandal, Takeo, Kampot and Kep. It is expected to take 4 years to complete once it commences.
  • Cambodian port development - There are several coastal ports under development targeting increased cargo and tourism along the domestic waterways and internationally. These include the Koh Kong International Seaport, Kampot International Port & Logistics Centre and upgrades to the Sihanoukville Autonomous Port.
  • Airport and Rail Links - The new Phnom Penh Techo Takhmao International Airport could be operational by 2025, while railway expansions have been ongoing for a decade, and there are feasibility studies into light railway networks and expanding the current rail network lines.
  • Bridges - By the start of 2024, the Council for the Development of Cambodia (CDC) confirmed that 10 major bridges with a total length of 10.89 km and a budget of USD $372 million were under construction across Cambodia.
DHL Global Connectedness Index 2024 Report

The DHL Global Connectedness Index 2024 Report was commissioned by DHL and authored by Steven A. Altman and Caroline R. Bastian of New York University Stern School of Business. It has been published regularly since 2011 and the 2024 edition is based on almost nine million data points. 

Cambodian Trade & Infrastructure News