UNIDO urges compliance drive in Cambodia’s GFT export markets

PHNOM PENH, June 9, 2026 (KPT) – The United Nations Industrial Development Organization (UNIDO) has warned that Cambodia’s garment, footwear and travel goods (GFT) sector must adapt to evolving sustainability and compliance demands in key export markets to remain competitive, according to preliminary studies presented Monday.

A UNIDO delegation shared findings with the Ministry of Industry, Science, Technology and Innovation (MISTI), including research on sustainable packaging and circular economy practices.

The studies highlighted growing requirements in the European Union, United States, United Kingdom and Canada, where buyers are pressing for greater supply chain traceability, higher recycled content, improved resource efficiency and stronger environmental compliance.

Industry Minister Hem Vanndy welcomed the results and stressed the need for coordinated action among government agencies, manufacturers, brands and development partners. “MISTI’s intention is to build a coalition. If stakeholders can align on the challenges and opportunities ahead, we can develop practical measures that strengthen both compliance and competitiveness,” he said.

Vanndy proposed a dedicated dialogue to validate the studies, identify priority actions and draft a roadmap to prepare the sector for shifting global market requirements. He also underlined the importance of helping Cambodian enterprises anticipate future trends and seize opportunities in sustainable packaging, recycling and industrial resource efficiency.

 The initiative reflects Cambodia’s broader push to safeguard its export competitiveness while positioning the GFT industry for long‑term growth in increasingly sustainability‑driven markets.

Cambodia’s GFT industry remains the backbone of its economy, earning $3.8 billion in exports in the first quarter of 2026, up 7.7 percent year‑on‑year and accounting for nearly half of total shipments. Officials said aligning with sustainability standards will be critical to safeguarding this growth and positioning the sector for long‑term competitiveness in increasingly compliance‑driven markets.