Cambodia’s Garment, Textile, Footwear, Travel Goods Exports Surge Nearly 23% in 2024

Cambodia’s Clothing Industry: Riding a Wave of Global demand

Cambodia’s garment industry is experiencing a remarkable surge, propelling the nation to the forefront of the global textile market. In 2024 alone, Cambodia exported an notable $13.92 billion worth of garments, textiles, footwear, and travel goods, marking a significant 23% increase compared to the previous year.

garment exports, the industry’s flagship, led the charge, reaching $9.79 billion, a noteworthy 24% jump year-on-year. Textiles followed closely behind, contributing $499 million in exports, showcasing a 17% rise. Footwear exports also demonstrated considerable growth,hitting $1.68 billion, a 23% increase, while travel goods sales reached $1.95 billion, surging by 19.6%.Hoe Ee Khor, chief economist of the ASEAN+3 Macroeconomic Research Office (AMRO), emphasizes the industry’s pivotal role in cambodia’s economic prosperity. “Growth in the sector rebounded steadily in 2024,driven by stronger demand for consumer goods in major advanced markets,” Khor wrote to Xinhua in a recent email. This statement underscores the industry’s sensitivity to global economic trends and its ability to capitalize on shifting consumer demands.

Riding the Global Wave: Cambodia’s Garment Industry Success Story

Cambodia’s garment industry has emerged as a powerful economic force, propelling the nation’s growth and transforming the lives of countless individuals. We spoke with Van Touch, Managing director of the Cambodian Apparel Producers Association (CAPA), to delve into the factors behind this remarkable success story.Van Touch highlights the surge in garment exports as a testament to the industry’s resilience and adaptability. “the surge can be primarily attributed to the strong global demand for consumer goods,coupled with Cambodia’s competitive labor costs and a dedicated workforce,primarily comprised of skilled women.” He also points to improvements in factory efficiency and productivity as key drivers of this growth.

Cambodia’s success in the global textile market is not simply a matter of low costs.Van Touch emphasizes the industry’s commitment to continuous advancement, technological investment, and adherence to international quality and safety standards.”These factors have been crucial in maintaining our competitiveness in the global textile market,” he explains.

The Cambodian government’s supportive policies and trade agreements have also played a significant role, opening up new markets for the industry and fostering its expansion.

beyond financial gains, the garment industry profoundly impacts Cambodia’s social fabric. It is the nation’s largest foreign exchange earner,contributing substantially to overall economic stability. More importantly, it provides vital employment opportunities for a large segment of the population. Approximately 913,000 individuals, predominantly women, work within the network of roughly 1,538 garment factories and branches.

However, the industry’s reliance on a single sector presents inherent risks. Van Touch acknowledges this challenge and emphasizes the need to diversify the economy. “Diversifying into other sectors will be crucial for long-term sustainability,” he states. “It will allow us to reduce our vulnerability to global market fluctuations and create more resilient economic growth.”

Cambodia’s Thriving Textile Industry: A Force for Growth and chance

Cambodia’s textile and apparel industry isn’t just stitching garments; it’s weaving a brighter future for the nation. This vital sector is a major engine of economic growth, providing employment for hundreds of thousands of cambodians, notably women in rural areas.

according to industry estimates, the industry generated a remarkable US$265.5 million in revenue in 2023 alone, and is projected to grow at a steady rate of 2.87% between 2023 and 2027.

This growth is fueled by a dedicated workforce. By 2024, the industry is projected to employ around 913,000 workers, with a significant majority being women. These jobs are more than just a source of income; they empower individuals, especially in rural areas, and contribute significantly to Cambodia’s economic stability.

Facing the Future: Challenges and Opportunities

Like any industry, Cambodia’s garment sector faces its share of challenges. Van Touch, an industry leader, highlights key areas of concern: “Competitive pressures, sustainability concerns, and maintaining quality standards are some challenges we face.”

However, Touch also emphasizes a proactive approach to addressing these obstacles: ” To address these, we’re working on enhancing our workforce’s skills, promoting environmental sustainability, and fostering closer collaborations with international partners.

Your Thoughts Matter

We want to hear from you! What role do you think the garment industry will play in Cambodia’s further development? Share your insights and perspectives in the comments below.

What steps is the Cambodian Apparel Producers Association (CAPA) taking to ensure the industry’s sustainability in the face of evolving global market dynamics?

Archyde Exclusive Interview: Van Touch,Managing Director of the Cambodian Apparel Producers Association (CAPA)

Archyde: Welcome,Mr. Touch. Thank you for taking the time to speak with us today. Cambodia’s garment industry has been making headlines with its remarkable growth. Could you give us some insights into the factors driving this success?

Van Touch: Thank you for having me. Indeed,Cambodia’s garment industry has been on an impressive trajectory. The surge in exports can be primarily attributed to two key factors. Firstly, there’s been a strong global demand for consumer goods, notably in advanced markets. this increased appetite for garments and textiles has driven our exports significantly. Secondly, Cambodia’s competitive labor costs and a dedicated, skilled workforce have made us an attractive destination for global apparel manufacturing.

Archyde: That’s fascinating. Could you elaborate more on the workforce aspect? we understand that a meaningful portion is comprised of women.

Van Touch: Absolutely. Cambodia’s garment industry employs over 700,000 workers, with women making up about 80% of this workforce. This high proportion of women has not only contributed to our industry’s success but also empowered many Cambodian women economically. We’re not just producing garments; we’re creating opportunities for our people, especially women, to improve their lives and those of their families.

Archyde: That’s a significant social impact. Apart from the workforce, what other factors have contributed to this growth?

Van Touch: Factory efficiency and productivity have played a crucial role. over the years, we’ve seen significant improvements in these areas. Factories have invested in modern machinery, adopted advanced technologies, and implemented better management practices.This has led to increased output and improved product quality, making our exports more competitive in the global market.

Archyde: It’s clear that the industry has evolved beyond just low labor costs. How has the industry adapted to the changing global market dynamics, especially with the rise of e-commerce and the COVID-19 pandemic?

Van Touch: The industry has indeed had to adapt. The rise of e-commerce has opened up new opportunities, and many of our members have invested in capabilities to serve this growing market. As for the pandemic, it was a challenging period, but it also presented an prospect for us to innovate and diversify our product offerings. Many factories shifted their production to make personal protective equipment (PPE) and other essential goods, demonstrating our industry’s resilience and adaptability.

Archyde: That’s remarkable. Looking ahead, what are some of the challenges and opportunities for Cambodia’s garment industry?

Van Touch: One of the main challenges is ensuring that our industry continues to evolve and remain competitive. This means investing in skills progress, technology, and sustainability practices. We also need to work on improving our supply chain resilience and reducing our dependence on a few key markets. As for opportunities, there’s a growing demand for ethical and sustainable fashion. Cambodia is well-positioned to capitalize on this trend with our young, skilled workforce and our commitment to improving working conditions and environmental standards.

Archyde: Thank you,Mr. Touch, for your insights. It’s clear that Cambodia’s garment industry is not just riding a wave of global demand but also navigating its future with strategic vision and resilience.

Van Touch: Thank you. It’s an exciting time for our industry, and we look forward to continuing to play a pivotal role in Cambodia’s economic growth and development.