Despite challenges in raw material supply and cross-border measures due to the severity of the epidemic, Cambodia’s garment industry’s exports will still grow strongly in 2021. According to statistics released by the General Administration of Customs of Cambodia, exports of clothing, footwear, and travel supplies will grow by 15.2% in 2021 to reach US$11.38 billion.
The Cambodian Footwear Association stated that Cambodia’s clothing exports increased in 2021 due to the shutdown of neighboring countries due to political unrest or epidemics, and international buyers transferred orders from neighboring countries. To Cambodia, the transfer order effect has led to an increase in Cambodian orders. The garment industry in Myanmar, Bangladesh, Vietnam and other countries has suffered from shortages of raw materials due to the outbreak. In contrast, Cambodia has an abundant supply of raw materials from China, which has indirectly contributed to the increasing number of orders from Cambodia. In addition, preferential treatment for exports to the European Union (EBA) and generalized preferential tariff measures (GSP) for exports to Japan and the United States have also promoted the growth of Cambodia’s garment exports. Cambodia’s clothing export markets include Europe, the United Kingdom, the United States, Japan, and Canada.
Finance Minister Aun Pornmoniroth said that the success of the national vaccination campaign has enabled Cambodia to fully regain momentum in all fields. Therefore, Cambodia’s economy is expected to grow from -3.1% in 2020 to 3% in 2021. This growth is mainly due to the surge in exports of the clothing industry, travel supplies, footwear, bicycles and agriculture. Driven by an expected increase in global demand and the confidence of foreign investors, Cambodia’s economy is expected to grow strongly at 5.6% in 2022.
