Cambodia’s garment industry frequently encounters cold: orders decrease, manufacturers leave…..


[INNEWS comprehensive report] Kong Sang, chairman of the Cambodian Textile, Garment, Footwear and Travel Products Association (TAFTAC), said at the 2023 Business Forum jointly organized by the Cambodian Development Council and the Cambodian Lords Association that affected by the global economic crisis, Cambodia will In the second half of the year, the situation of the garment industry has not yet improved.

Kong Sang revealed that in the first half of this year, Cambodia’s garment exports fell by nearly 20%. Due to the economic crisis, orders decreased, so some manufacturers began to turn to Bangladesh because the country can produce cheaper goods.

He emphasized that in the second half of this year, the situation in the field of clothing is not expected to change much. Compared with Vietnam A region, the labor cost in Cambodia is comparable, but the productivity is only 70% of Vietnam. Therefore, it is necessary to continue to train skilled workers in this field to enhance competitiveness. At the same time, Cambodia must create a better investment environment to support and attract textile factories to be established in Cambodia to support the industry’s production.

Kong Sang called on the European Union and the United States to continue to provide Cambodia with EBA and GSP preferential tariff treatment to support Cambodia’s garment industry. He pointed out that as of early August this year, there were 1,077 factories in Cambodia’s national garment industry, including 802 garment factories, 140 shoe factories, and 134 luggage factories. These factories employed a total of 764,358 workers. The garment industry still plays an important role in the Cambodian economy.

It is reported that in 2022, Cambodia’s exports in this field will reach approximately US$12.5 billion, accounting for nearly 60% of Cambodia’s total exports and contributing about 10% to the Cambodian economy. However, according to the report of the General Administration of Customs of Cambodia, in the first seven months of 2023, Cambodian clothing exports fell by about 20% to US$4.4 billion; footwear exports fell by 22.7% to US$808 million.