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Monday, 09 January 2023 06:01

Cambodia hopeful of enhanced exports to the US

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For Cambodian exporters, the US apparel market remains a major destination. Garment exports to the US from Cambodia have been rising consistently and rapidly.

Jerseys, shirts and trousers and shorts together accounted for more than half of the export value to the US in first nine months of 2022. Of this, shipment of shirts and trousers was 31 percent, and shipment of jerseys was 21 percent. For American fashion companies and importers Asian suppliers, such as Vietnam, Bangladesh, and Cambodia, as well as members of the African Growth and Opportunity Act, offer the most competitive prices.

At present, Asia accounts for more than 70 percent of US apparel imports. For US fashion companies, eight out of the top ten most-utilised sourcing destinations are Asia-based, led by China, Vietnam, Bangladesh, India and Cambodia.

However reducing the China exposure is one crucial driver of US fashion companies’ sourcing diversification strategy and around 33 percent of companies sourced less than ten percent of their apparel products from China in 2022. With the new inclination of US garment importers, the Cambodian garment industry may land more and more varied orders. Garment exports are the largest foreign exchange earner for Cambodia, accounting for almost 60 percent of the country’s total export value,