Cambodia’s garment, footwear, and travel goods (GFT) sector witnessed a significant uptick in January, with a 21.64 percent increase in exports, totaling $967 million. This positive shift is a welcome change for the sector, which is a cornerstone of Cambodia’s economy, providing employment to nearly one million individuals.
Data from the General Department of Customs and Excise (GDCE) revealed that all categories within the GFT sector experienced growth in January 2024 compared to the same month in the previous year. Notably, knitted apparel and clothing accessories exports surged by 24.3 percent to $435 million, while non-knitted apparel saw a 30.9 percent increase, reaching $269 million. Footwear exports rose by 11.4 percent to $122 million, and leather and travel goods also saw an increase, bringing in $122 million, a 4.1 percent rise from January 2023.
This growth comes despite significant challenges, including the non-renewal of the Generalized System of Preferences (GSP) by the United States and a reduction in benefits from the European Union’s Everything But Arms (EBA) initiative. These trade barriers have not deterred the sector’s performance, highlighting its resilience and critical role in the Cambodian economy.
The GFT sector is a major employment provider, contributing significantly to Cambodia’s GDP. Its recovery is crucial for sustaining jobs and preventing factory closures, a concern that heightened following a 13.31 percent decline in GFT exports in 2023 amid global economic challenges.
The recent upturn in exports offers hope for the sector’s stability and growth. Efforts to diversify the economy and reduce dependency on GFT exports are ongoing, with calls for enhancing worker productivity and embracing sustainable practices like renewable energy adoption to maintain competitiveness, particularly against rising competition from other Asian nations like Bangladesh.
Industry experts emphasize the importance of increasing the sector’s competitiveness through innovation and sustainability. Initiatives such as encouraging the use of solar energy could significantly reduce operational costs and bolster the sector’s global standing, ensuring long-term growth and prosperity for Cambodia’s GFT industry and its workforce.
Source: Khmer Times
