Cambodia's garment, footwear, and textile (GFT) industry is looking to tap into new export opportunities through Free Trade Agreements (FTAs). While exports of footwear to China and South Korea have shown growth, exports to the European Union (EU) and the United States (US) have declined. 

However, there is optimism that GFT orders will rebound in the middle of 2023 once excess inventory is cleared. The global demand for GFT has been impacted by the Ukrainian conflict and inflation. Nonetheless, there is an anticipated increase in GFT orders during the high season and towards the end of the year. 

Besides China, South Korea, the EU, and the US, GFT products are also being exported to markets such as the UK, Canada, Japan, and others. While specific export percentages are not disclosed, GFT exports in the first half of 2023 amounted to $5.26 billion, representing an 18.7% year-on-year decrease. 

The GFT industry plays a vital role in Cambodia's foreign exchange, with 1,300 factories employing approximately 840,000 workers, predominantly women. The Regional Comprehensive Economic Partnership (RCEP) has contributed to Cambodia's trade by providing trade preferences and reduced tariffs, as acknowledged by the Ministry of Commerce.