Despite being negatively impacted by the Covid-19 crisis over the past few years and ongoing external headwinds, the textile-related industry continues to play a crucial role in boosting the country’s exports, job creation and domestic income, according to the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC).

TAFTAC chairman Kong Sang, re-elected at its 16th General Assembly for the 2024-2025 term, reported on January 13 that following the recovery from Covid-19, the sector began 2022 with high growth in the first half. 

He said the Russia-Ukraine war negatively impacted the global economy, leading to a decline in exports, particularly in the last five months of the year. 

Nevertheless, he said the industry concluded 2022 with a growth of 14%. 

In 2023, amid ongoing global economic uncertainty and challenges, export value fell to $11.42 billion, a 12% decrease from nearly $13 billion in 2022. 

This included declines of more than 11% in garments, about 8% in footwear, roughly 21% in travel goods and bags and approximately 4% in other textile products.

“TAFTAC made relentless efforts to seek immediate support from the government, particularly in wage subsidies for employees during temporary work suspensions. The association has regular discussions with government partners to support our sector,” Sang stated.

“We will face new challenges in the coming year, but I am confident that we will be able to successfully overcome them together. I would also like to take this opportunity to call on all members to continue to cooperate and participate in the activities of the association, to aid our sector,” he added.

Addressing the assembly, Minister of Labour and Vocational Training Heng Sour urged factory owners to join the national “One enterprise is one safe community” programme following the government’s guidelines. 

He explained that garment factories are part of a competition to establish safe communities. 

He said initially, the competition will involve factories in the garment, textile and travel goods industries, with other sectors able to volunteer. 

The minister noted that the winner of ‘Level A’ would receive a one-year inspection exemption and if a factory wins the award for three or five consecutive years, they would receive an exemption for three or five years, respectively. 

Sour emphasised the need to create a culture of compliance and voluntary obedience to ensure peace between employers and employees, aligning with the government’s aspirations.

He added that the Cambodia Garment, Footwear and Travel Goods (GFT) Sector Development Strategy 2022-27 aims to improve the investment climate and enhance competition within the sector. 

In early January, the Ministry of Economy and Finance warned of potential negative impacts from global economic uncertainties, which could destabilise external demand, particularly from key markets such as the US and EU.

As of December 2023, TAFTAC comprised 720 members, including 524 garment, 93 travel goods and bag, 8 footwear and 49 other product factories, as well as 46 associate members, as per the association