In the first 10 months of 2019, Cambodia’s exports of garments, textiles, footwear and travel products were up 6.45 per cent. Export rights have been granted under the preferential trading system to 78 garment, footwear and bag factories. There has been a 24 per cent increase in the number of such registered facilities. There was a 170 per cent increase in the bag factories registered.

Cambodia has seen positive effects of the US-China trade dispute, which has prompted a surge in garment and footwear registrations. The growth of garment factories last year got a boost mainly because of the need to find alternative sourcing destinations away from China. Growth in travel goods factories was strengthened by the eligibility of the products for the US’ Generalised System of Preferences. More than 500 factories in Cambodia employ more than 7,00,000 workers. To boost exports to international markets, the country is continuing to strengthen the supply chain and diversify the exports market through integration within the Asean Economic Community. Efforts are being made to improve capacity and efficiency by strengthening human resources and reforming management and administrative structures, as well as improving public services.

Cambodia’s economy depends heavily on its garment and textile industry, and the EU is its largest export market.