Introduction

This edition of Better Factories Cambodia’s (BFC) Annual Report draws on evidence generated through factory engagement in 2025, including compliance data from 421 assessments in garment factories and 96 assessments in travel goods and bags (TGB) factories together with advisory service progress reports from 247 factories in Cambodia that completed an advisory service cycle in 2025. Within each thematic compliance section, the report provides insight into how data and experience gathered through factory engagement is leveraged by the programme to inform sectoral dialogue and action on behalf of key stakeholders and partners. Finally, the report highlights the priorities that will guide BFC’s work with partners looking forward.

Industry Context

Since BFC’s last annual report, the global garment industry has continued to navigate significant uncertainty, spurred by global economic volatility and geopolitical tensions. Even amidst challenges, the GFT sector in Cambodia has continued to demonstrate the critical role it plays in the national economy. Data from the Royal Government of Cambodia’s General Department of Customs and Excise indicated that within the first quarter of 2026, the GFT sector generated US$3.75 billion in export revenue, a nearly eight per cent increase from the same period in 2025.

Snapshot of the industry 2025

BFC engages with Cambodia’s garment and travel goods exporting factories through unannounced compliance assessments, alongside opt-in advisory and training services. Assessments cover more than 200 questions across eight compliance clusters, including fundamental principles and rights at work—freedom of association and collective bargaining, child labour, forced labour, discrimination, and occupational safety and health—as well as national law on compensation, contracts and human resources, and working time.

In 2025, BFC streamlined its service delivery, including introducing shorter one-day assessments for selected factories, enabling the programme to reach 103 new factories and increase assessment coverage by 14 per cent compared with 2024. The resulting factory-level data and insights help identify industry trends and inform BFC’s wider work with government, employers, workers, and international brands and buyers to improve working conditions and strengthen the sector.