Cambodia saw a jump in garment export earnings of almost a full quarter in 2024, with garment exports earning nearly $12 billion, almost 45% of the Kingdom’s total export income.

According to the General Department of Customs and Excise (GDCE), garment products with HS codes 61, 62, 63 and 64, earned $11.68 billion, up 24.4% on the $9.39 billion of 2023.

This represented 44.59% of the $26.2 billion Cambodia earned from exports.

HS codes 61, 62 and 63 include articles of apparel and clothing accessories (knitted and not knitted or crocheted), while goods under HS code 64 include footwear, gaiters and the like, as well as accessories like laces.

According to the GDCE, in 2024, HS 61 goods were worth $6.64 billion, an increase of 21.2%; HS 62 were valued at $3.15 billion, a 31.9% increase; products under HS 63 totalled $208.29 million, a 33.9% rise; and exports under HS 64 amounted to $1.68 billion, growing by 23.1%.

Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on January 20 that the Kingdom’s garment exports heavily rely on demand from major markets such as the US, Canada, the EU and several Asian countries. 

He added that last year’s growth of exports can be attributed to several factors, including the recovery of the tourism sector, which has driven an increased demand for clothing, travel bags and shoes; a reduction in stock inventories of supplier companies in 2022-2023; and decreased production in some key exporting countries due to political issues.

“The production capacity and increased demand in international markets have led to significant growth in Cambodia's garment export value in 2024. If the global political and economic situation improves in 2025, Cambodia's garment export value will continue to rise,” he said.

He explained that increased investment in the garment sector indicates that investors are optimistic about the growth in global demand.

According to the Council for the Development of Cambodia (CDC), in 2024, a total of 414 investment projects – with a total investment capital of approximately $6.9 billion – were approved. Among them, garment factories were the most common, with 99 factories, followed by 25 footwear factories and 18 travel bag factories.

“Before making an investment decision in any sector, investors conduct thorough research and analysis of the challenges and potential returns. Therefore, the growth of investment in many sectors suggests that investors have high expectations for the sector's development,” added Vanak.

Chea Chandara, president of the Logistics and Supply Chain Business Association in Cambodia (LOSCBA), said that although he did not have exact data on garment exports, he had noticed an increase in shipping activity from garment factories to the Sihanoukville International Port in 2024. Currently, garment, bag and footwear factories are present in almost every region of Cambodia, particularly in Phnom Penh, Kandal, Kampong Speu, Takeo, Kampong Cham and Svay Rieng provinces.

“The growth in investment in this sector is due to high international demand. The quality and price of all these products are also competitive and have resulted in increased international orders,” he added.

Ly Kunthai, president of both the Cambodia Confederation of Investors Association (CCIA) and the Cambodia Footwear Association (CFA), noted in October that the sector had begun to recover from mid-2023 following a pandemic-induced decline. He attributed this growth to the country’s political stability, attractive investment laws, skilled workforce and expanding markets.

“The increase in textile export revenues stems from Cambodia’s political stability, which distinguishes it from other ASEAN countries. The workforce here is efficient and produces high-quality goods at consistent levels,” he explained.

He also credited government leaders for their active role in promoting investment and encouraging the purchase of Cambodian-made products.

According to the Budget in Brief Fiscal Year 2025, released by the Ministry of Economy and Finance this week, the Kingdom’s economy is tipped to grow by 6.3% in 2025, amidst increasing domestic and international challenges and risks, which will continue to threaten the sustainability and long-term development of Cambodia.

The industrial sector is expected to support this growth, with a forecasted increase of 8.6%, followed by the services sector at 5.6% and the agriculture sector at 1.1%.