Cambodia's garment, footwear, and travel (GFT) goods, the country's largest export sector, continued to experience poor performance in the fourth month of 2023. Trade data released by the General Department of Customs and Excise (GDCE) revealed a decline of 24.63 percent in earnings from January to April compared to the same period in 2022.
In the first four months of this year, Cambodia exported GFT goods worth $3.10 billion, a significant drop from the $4.11 billion recorded during the corresponding period last year. The decline in exports intensified in April 2023, with a 30.42 percent decrease compared to April 2022, marking the largest monthly decline so far this year. March saw a decline of 14.60 percent, followed by declines of 24.54 percent in February and over 28 percent in January, all compared to the respective months of the previous year.
Analyzing the GFT sector, knitted apparel articles earned $1.39 billion till April 2023, representing a 28.5 percent decline compared to the $1.95 billion earned during the same period in 2022. Non-knitted apparel articles generated $754.72 million, an 18.1 percent decline year-on-year from the $922 million earned last year. Travel goods contributed $515 million until April this year, compared to $672 million during the same period last year, resulting in a decline of 23.3 percent. Footwear exports amounted to $436.91 million in the first four months of 2023, reflecting a decline of 23.4 percent compared to the previous year's $570.64 million.
Overall, Cambodia's international trade experienced a 14.1 percent decline from January to April 2023 compared to the same period in 2022, totaling $15.16 billion, as indicated by GDCE trade data. The sustained decline in GFT export earnings since the latter half of the previous year has raised concerns about factory closures and job losses. The GFT sector, which constituted 11 percent of Cambodia's economy, is the largest source of employment in Cambodia, providing jobs to over 750,000 people, with a majority being women. While the sector accounted for 41 percent of the country's exports until the end of April this year, it constituted 53 percent during the same period last year, highlighting the alarming downward trend.
Industry experts attribute the declining exports to excess or unsold stocks held by retailers in Europe and the US from previous seasons, resulting in reduced demand.
Reports indicate that as of February this year, more than 70 factories have closed in Cambodia, leaving 32,023 workers unemployed, of which 26,055 are female.
