Cambodia Hails Garment Sector Growth Despite Global Headwinds

Cambodia’s government has spotlighted a surge in garment factory numbers as evidence of a strong industrial rebound, despite looming uncertainties over US trade policy.

According to a new report released by the Ministry of Labour and Vocational Training, the number of garment factories operating in the Kingdom rose to 1,682 by the end of June 2025—up from 1,566 at the close of 2024. This growth is being portrayed as a sign of economic resilience and successful diversification within the country’s manufacturing sector.

Beyond garments, the Ministry says Cambodia now hosts over 43,900 non-garment factories, reflecting continued expansion across broader industrial lines.

Officials credit the garment, footwear and travel goods (GFT) industry with playing a vital economic role. The Ministry of Commerce reported that GFT exports reached $7.38 billion in the first half of 2025, marking a 22 percent increase year on year. Garments accounted for the lion’s share, totalling $5.28 billion, while footwear and travel goods rose by 33 percent and 12.6 percent respectively.

Speaking at a recent business forum, Kaing Monika, Deputy Secretary-General of the industry association TAFTAC, underlined the sector’s weight, claiming it contributes around 10 percent of national GDP and supports nearly one million jobs—most of them filled by women.

Much of Cambodia’s GFT output is destined for the US, EU, Canada, and Japan, although officials have flagged concerns over ongoing US tariffs that could cloud future growth.

Imports of raw materials used in garment production also rose by over 21 percent in the same period, reaching nearly $3.5 billion—a sign, authorities say, of sustained industrial demand.

While the numbers suggest a promising trajectory, analysts note that much of the narrative reflects government messaging aimed at projecting economic stability amid rising regional competition and geopolitical uncertainty. How the sector weathers trade shifts and automation pressures in key markets remains to be seen.

-2025-07-31