Accounting for 44.6 per cent of the nation’s total export earnings for the year, Cambodia’s earnings from garment exports increased by 24.4 per cent to $12 billion in 2024. As per data from the General Department of Customs and Excise (GDCE), the nation’s earnings from exports of garments and related products under HS codes 61, 62, 63, and 64 increased to $11.68 billion from $9.39 billion in 2023.

Garment products under HS codes 61, 62, and 63 encompass knitted and non-knitted apparel and accessories, while HS code 64 includes footwear, gaiters, and related items. Earnings from exports of garment products under HS 61 increased by 21.2 per cent to $6.64 billion while those under HS 62 rose by 31.9 per cent to $3.15 billion. Earnings from exports of products under HS 63 code rose by 31.9 per cent to $208.29 million while those under HS 64 generated increased by 23.1 per cent to $1.68 billion.

Hong Vanak, Economist, Royal Academy of Cambodia, attributes this growth to increased global demand from key markets such as the US, Canada, the EU, and Asia. According to him, factors like the recovery of tourism, reduced inventory levels in previous years, and political issues impacting other exporting nations also played a role in this growth

In 2024, Council for the Development of Cambodia (CDC) approved 414 projects worth $6.9 billion. Garment factories led among these with 99 projects, followed by 25 footwear and 18 travel bag factories.

Noting a rise in shipping activity from garment factories, Chea Chandara, President, Logistics and Supply Chain Business Association, attributes this growth to competitive pricing and quality, which have boosted international orders.

Ly Kunthai, President, Cambodia Footwear Association, emphasizes on political stability, attractive investment laws, and a skilled workforce as key factors supporting the sector’s recovery since mid-2023. He also praises government efforts to promote Cambodian-made products and foster investment.