Cambodia exports of garments, footwear and other textile-related items in the first nine months of 2022 increased by 23 per cent over the same period last year.

The overall increase in these exports seen over the year underscores the robust growth of the Cambodian economy. There has been a sharp overall rise in exports to the US in recent years. But, at the same time, there’s been a slowdown in exports to Europe due to the Ukraine conflict’s impact on demand there. Many buyers now have a lot of inventory on hand and thus they are placing fewer orders.

The expiry of the US’ Generalised System of Preferences also means Cambodia’s travel goods sector does not enjoy duty free privileges for now and some orders are moving back to China temporarily. GSP provides non-reciprocal, duty-free tariff treatment for certain products imported to the US from designated beneficiary developing countries and territories, which includes Cambodia. However, the scheme lapsed on December 31, 2020, and has yet to be renewed. Export of travel goods and related products have also slowed in the second half, after mushrooming by 55 per cent in the first half. A number of factories have partially suspended operations since mid-August.