Cambodia’s apparel exports to Canada increased 20 per cent in the first eight months of 2022 compared to the same period in 2021. Canada is the third largest market of Cambodia for apparel exports and has a share of nine per cent in Cambodia’s apparel exports. Cambodia is in fourth position in Canada’s apparel imports. Bangladesh and Vietnam are in the second and third positions. China is in the top position.

Cambodia’s free trade agreement with South Korea has come into effect. The free trade agreement may help boost Cambodia’s apparel exports to South Korea. The agreement also presents opportunities for value-added investments in Cambodia’s downstream processing industries through a plus one business model, in which South Korean companies could expand their supply chain network developed in not only China but also Vietnam or Thailand. South Korea has a great demand for high-value winter clothing and denim. Other potential products that have good demand in the country include non-leather footwear, home textiles, jute and jute products etc.This year, Cambodia’s apparel exports to South Korea may touch pre-Covid levels despite the volatility in monthly shipments.The FTA will remove tariffs on 95 per cent of products imported from Cambodia, while Cambodia will eliminate duties on 93 per cent of imported goods.