Cambodia is a major player in global textiles. As the world’s ninth-largest exporter of garments, footwear, and travel goods, the industry is central to the country’s economy. It contributes over a third of GDP and provides jobs for around 750,000 workers across 1,100 factories. Despite facing global challenges, Cambodia’s textile sector is showing strength, reflecting the effectiveness of the Cambodia Textile Export Strategy. In the first nine months of 2024, export earnings jumped by 25%, reaching nearly $9 billion. This figure represents 44.16% of the country’s total export revenue, underscoring the sector’s importance.
Bouncing Back from Setbacks
In early 2023, the industry took a hit. Apparel exports fell by nearly 19%, dropping to $3.65 billion in the first half of the year. However, the rebound later in 2023 and into 2024 shows the sector’s resilience. This quick recovery is not by accident. It reflects the impact of targeted government efforts and a clear Cambodia Textile Export Strategy aimed at upgrading the industry.
Cambodia Textile Export Strategy: A Roadmap for Transformation
To compete globally, Cambodia launched the Industrial Transformation Map for the Textile and Apparel Industry 2023–2027. This roadmap outlines how the country plans to move beyond low-cost production and become a hub for high-value, sustainable manufacturing.
Key goals of the roadmap include:
Attracting investment in modern machinery and sustainable production
Promoting technology adoption and innovation
Diversifying raw material sourcing to reduce dependency
Expanding export markets beyond traditional destinations
Boosting worker skills and productivity
The strategy doesn’t stop at economic gains—it also emphasizes environmental, social, and governance (ESG) standards, pushing for a cleaner, more ethical supply chain.
For instance, Cambodia is promoting green manufacturing by offering tax breaks to factories that meet international sustainability certifications like Global Organic Textile Standard (GOTS) or LEED certification. By aligning with global ESG trends, Cambodia aims to strengthen its position as a responsible sourcing destination for major brands.
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Policy Support and Expansion
Cambodia’s GFT Sector Development Strategy 2022–2027 builds on this vision. It aims to make the industry more resilient, eco-friendly, and globally competitive.
Government support has been clear. In 2023 alone, 241 new textile factories opened, bringing the total to 2,125 nationwide. This steady expansion shows that investor confidence remains strong, even as global markets shift. By encouraging research and development, supporting infrastructure upgrades, and enhancing workforce training, Cambodia is taking active steps to climb the global value chain.
Cambodia Textile Export Strategy Challenges Remain, So Do the Opportunities
While growth is encouraging, challenges persist. The sector must continue addressing:
Rising global competition
Ongoing raw material sourcing issues
Increasing pressure to meet green standards from buyers
But these challenges are also opportunities. With the right policies, the country can reduce reliance on imported materials, expand its export footprint, and offer higher-value services to global brands.
The Cambodia Textile Export Strategy is not just about recovery—it’s about reinvention. By focusing on innovation, sustainability, and skills, Cambodia is reshaping its textile industry for long-term success. With nearly $9 billion in exports already in 2024 and strong growth in factory openings, the future looks promising. If current strategies stay on course, Cambodia could rise from being a manufacturing base to a value-added textile leader in Asia.