Cambodia's textile and apparel industry needs to align its product mix with international sourcing trends, diversify its market mix, and reduce its import dependency by backward integration, according to the government's Industrial Transformation Map for Textile and Apparel Industry 2023-2027.

The map, based on an evaluation of the global and Cambodian textile and apparel sector, aims to build a competitive industry with an increased focus on value addition, sustainability, technology adoption, skills, and entrepreneurship.

The government report identified four levers, including skilling and productivity, technology and sustainability, infrastructure, and governance. The development strategy aims to strengthen human resources, improve working conditions, promote domestic and foreign investments, and attract investment in supportive industries.

The transformation map identified that trade developments and internal factors such as rising wages and limited focus on sustainability parameters pose challenges to the industry. To address these challenges, the report suggests aligning the product mix with international sourcing trends, diversifying the market mix, encouraging backward integration for the manufacturing of finished fabrics and yarn, and policy reforms to improve the business environment.