Cambodia's garment and clothing accessory exports faced a tough year in 2023, dropping 13 per cent compared to 2022 to nearly $7.9 billion. The decline reflected both global challenges and specific factors affecting demand in key markets.
The General Department of Customs and Excise (GDCE) reported that international sales under apparel and clothing accessory codes (HS 61 and 62) reached $7.87 billion, down from $9.03 billion in 2022. While individual code categories like knitted apparel (Code 61) saw smaller declines, overall exports represented 34.8 per cent of Cambodia's total, highlighting their significance.
However, a glimmer of hope emerged in December 2023 as exports for both codes showed a 14 per cent Y-o-Y increase. This uptick suggests a potential rebound in 2024. Industry experts attributed the 2023 decline to various factors including economic challenges in developed countries like the US and EU, due to factors like the Ukraine war.
Despite the export decline, Cambodia's production capacity continued to grow, with new factories opening. This indicates a potential for future export increases.
Lim Heng of the Cambodia Chamber of Commerce sees the recent export improvement as a positive sign, while Ly Khun Thai of the Cambodia Footwear Association expects overall exports to surpass 2023 levels.
Cambodia's garment industry remains crucial, employing around 760,000 people across over 1,000 factories. The sector's recovery in 2024 would be a significant boost for the Cambodian economy and its workforce.
