Background

Cambodia’s garment, footwear, and travel goods (GFT) sector is foundational to the country’s economic output and growth. In 2024, the sector recorded exports of US$ 13.6 billion. Growth in this sector—which supports an estimated 918,000 formal jobs—hinges on maintaining export market access in a volatile global trading environment. As exports in Cambodia’s GFT sector primarily rely on preferential market access granted by the United States and the European Union, the withdrawal of trade benefits, the imposition of tariffs from major trading partners, or a global economic recession could negatively affect the strong recent growth in the sector.

Key Findings

• Nearly half of the respondent factories anticipate difficulty to sustain current operations beyond three months with current orders
• 27 per cent of respondents affirmed existing buyers have requested reduced pricing for orders in 2025
• Despite challenges, 65 per cent of respondents expressed optimism about the near-term outlook