According to the latest trade data released by the General Administration of Customs of Cambodia (GDCE), the total export value of Cambodian clothing, footwear, and travel goods (GFT) increased by 23.33% year-on-year in the first eight months of this year, generating $9.08 billion in foreign exchange for Cambodia.

Cambodia's clothing, footwear, and travel goods industries see significant growth in exports

Cambodian clothing, footwear, and tourism products are the largest sources of export revenue for Cambodia. After nearly 18 months of continuous decline from mid-2022 to the end of 2023, there has been an improvement this year. Data shows that Cambodia's total exports from January to August 2024 amounted to 17.58 billion US dollars, of which 51.7% came from clothing, footwear, and tourism supplies.

This transformation is not easy to come by, and it also brings comfort to the relevant departments that continue to promote the clothing, footwear, and tourism products industries. Previously, the government was providing living support for workers who lost their jobs due to factory closures or shutdowns in the industry. Now that the export situation has improved, it also means that more job opportunities will come.

Ken Loo, Secretary General of the Cambodian Textile, Clothing, Footwear and Tourism Products Association (TAFTAC), stated in an interview with KhmerTimes Chinese website that this year's growth trend will continue. Despite geopolitical uncertainties such as the Russia Ukraine conflict and the Israel Hamas conflict, the industry is on a path to recovery as global demand continues to rise, particularly in the United States and Europe.

Recently, the clothing, footwear, and travel goods industries in Cambodia have also attracted more investment, and foreign investors have regained interest in opening textile and travel goods factories.

According to the latest trade data, from January to August this year, all sectors of the GFT industry performed well, with an increase in export volume compared to the same period last year.

At the same time, the export of knitted clothing and clothing accessories generated 4.36 billion US dollars in foreign exchange, an increase of 20.1% from January to August 2023. Non knitted clothing sales generated $2.11 billion in foreign exchange, a year-on-year increase of 31.9%.

In the first eight months of this year, sales of leather products and travel supplies reached 1.37 billion US dollars, a year-on-year increase of 20.9%. Shoe exports generated $1.08 billion in foreign exchange during this period, a year-on-year increase of 22.4%. In addition, the sales of other textile products reached 140 million US dollars, an increase of 41% compared to the same period last year.

In August 2024 alone, GFT exports generated $1.57 billion in foreign exchange for Cambodia, an increase of 57.51% from $1 billion in August 2023.

According to data from the International Labour Organization (ILO), GFT is one of the largest job creators in Cambodia, having created nearly one million direct employment opportunities. It is estimated that this industry accounts for 11% of the economy and contributes approximately 50% to Cambodia's real GDP growth in 2021.

It is worth noting that in the context of global uncertainty, Cambodia's GFT exports in 2023 decreased by 13.31% compared to 2022, from $12.8 billion in 2022 to $11.09 billion in 2023, resulting in many factory employees losing their jobs.

The Cambodian government will start providing a subsidy of $40 per month to GFT industry workers whose labor contracts have been suspended due to a global demand slowdown in March 2023. In addition, the factory management also distributed $30 to each suspended worker.

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