Footwear export revenue sees decline
Footwear export revenue sees decline
Cambodia's export revenue from footwear and related products reached nearly $1 billion in the first nine months of 2023, marking a 25.1% decline from the $1.32 billion recorded during the same period last year. Experts suggest the downturn is due to external global economic pressures rather than domestic factors.
According to the General Department of Customs and Excise (GDCE), exports of these goods, classified under HS Code 64, were worth at $991.77 million and represented approximately 5.9% of the country’s total export value of $16.95 billion for the period. In comparison, during the first nine months of 2022, such exports constituted 7.8% of the total exports, which were valued at $17.08 billion.
For September alone, the export value for these products was $101.17 million, a drop of 28.7% from $141.81 million in September 2022.
Ly Khun Thai, president of the Cambodian Footwear Association (CFA), attributed the decline to sluggish global economic growth, the impact of the Russia-Ukraine conflict and the overstocking of large orders from 2022.
He noted, however, that Cambodia’s production capacity is on the rise, bolstered by new investments sanctioned by the Council for the Development of Cambodia (CDC).
“The primary factors affecting the international demand for our products are the global economic downturn and the ongoing war,” he explained.
Despite the current scenario, he anticipates a gradual uptick in exports towards the end of 2023 and into 2024, expressing optimism for a recovery in orders.
He noted that Cambodian-made footwear, which includes brands like Adidas, Clarks and Timberland, is shipped to key markets such as the US, EU, UK, Canada and regional countries.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), remarked that these exports are vital to Cambodia’s international trade and have been instrumental in job creation and generating substantial annual revenue.
He linked the drop in demand to economic difficulties in the country’s export destinations and a nearly four-year slump in global tourism.
“As the world economy rebounds and tourism resumes, we expect the demand for our footwear products to rise,” he said.
For reference, the 2022 export figures for HS Code 64 category goods stood at $1.74 billion, marking a 24.8% increase from $1.39 billion in 2021 and accounting for about 7.7% of the Kingdom’s total exports, which amounted to $22.48 billion, as per the GDCE.
