Cambodia’s products are likely to see a drop in purchase orders early in 2023.

Export of garment products, bags and footwear in 2022 increased moderately compared to 2021. At the beginning of 2022, the situation of orders was good, but by the end of 2022 and at the beginning of 2023, orders for shoes and bags decreased by about 30 per cent to 40 percent mainly due to the Russian-Ukrainian war. Footwear exports increased from August 2022 to December 2022 but then have decreased significantly.

Overseas buyers cut back on orders, causing some factories to reduce staff, reducing overtime for production lines and closing some factories. Cambodia’s exports of garment, footwear and travel goods rose by 14 per cent in 2022. Garments, footwear and travel goods products account for 56 percent of Cambodia’s total exports. The garment, footwear and travel goods industry is the largest foreign exchange earner for Cambodia.

The sector consists of roughly 1,100 factories and branches, employing about 7,50,000 workers, mostly female.Cambodia’s biggest markets for travel bags and footwear are the United States and the European Union. But Cambodia also exports to Canada and Asean countries. In 2022 Cambodia’s exports of garment products, footwear and travel goods rose by 12 percent, 24 percent, and 17 percent.