Cambodia’s Garment Exports Hit Record High Despite Global Trade Headwinds

PHNOM PENH, June 17, 2026 (KPT) — Cambodia’s garment, footwear and travel goods sector has posted a new export record despite global economic uncertainty, underscoring its resilience as the country’s largest export engine, officials said Wednesday.

Speaking at the Cambodia Textile Summit 2026, Labour Minister Heng Sour said exports reached US$15.98 billion in 2025, up 16.4 percent year‑on‑year. Momentum carried into 2026, with shipments hitting US$6.44 billion in the first five months, a 6.4 percent rise. “The industry is navigating an unpredictable blend of trade hurdles, fuel shocks and worldwide instability,” Sour told participants.

The sector employed about 1.2 million workers across 2,000 enterprises as of May, including 1,468 garment factories, 275 travel goods producers and 231 footwear plants. Investment has remained strong, with 262 Qualified Investment Projects approved between 2025 and April 2026 worth US$1.76 billion, expected to create 320,000 jobs.

Industry indicators show sustained confidence: factory openings rose from 234 in 2022 to 330 in 2025, while closures fell to 29. TAFTAC reported exports of US$16.2 billion last year, accounting for 52 percent of Cambodia’s total shipments. Deputy Chairman Robert Hwang said the sector has repeatedly demonstrated resilience through crises and shifting trade policies.

Ministry of Labor acknowledged challenges ahead as Cambodia prepares to graduate from Least Developed Country status in 2029, which could erode preferential trade schemes. To maintain competitiveness, the government is promoting higher‑value manufacturing, fabric production, automation and workforce training under its TVET agenda.

Despite headwinds, officials said the latest figures confirm Cambodia’s garment sector remains on a solid growth trajectory, supported by investment, expanding capacity and sustained buyer confidence.