Kingdom’s GFT exports hit record-high $13.74 billion
Kingdom’s GFT exports hit record-high $13.74 billion
Cambodia’s exports of garments, footwear and travel goods (GFT) earned the country a record $13.74 billion in 2024, an increase of 23.78 percent compared to the same period last year, the latest trade data of the General Department of Customs and Excise (GDCE) showed.
As much as 52.46 percent of Cambodia’s total export earnings of $26.19 billion in 2024 came from GFT goods. The rising trend is expected to continue this year as well.
While talking to Khmer Times on Friday, Ken Loo, the Secretary General of the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC), stated that the recovery of the global economy last year helped the Kingdom to achieve this growth in the exports of GFT items.
“Investors and orders shifting from Myanmar due to political problems there particularly helped Cambodia’s GFT exports in 2024,” he said while expressing confidence about the trend continuing into 2025.
The current geopolitical situation also comes as an advantage for Cambodia. The fear of US President-elect Donald Trump imposing additional tariffs on made-in-China exports has resulted in manufacturers currently based in China looking to move both investment and production bases to other countries, especially Southeast Asia.
Massimiliano Tropeano, Sustainability and Garment Expert, said the export surge is exactly as predicted by the European Chamber of Commerce in Cambodia (EuroCham) and TAFTAC on the last November 6, during the launch of the GFT Sector Brief.
“The 23.8 percent surge in GFT exports is significant. The global demand for garments has been stable and factors related to the geopolitical situation and production moving from China, Bangladesh and Myanmar all contributed to this achievement,” he noted.
“Also, the competitiveness of the Cambodian market played a big role with factories engaging more and more in sustainability, de-carbonization and Occupational Health and Safety (OHS). Big improvements are still required but Cambodia’s GFT sector seems to be on a good track,” Tropeano observed.
“Country-wise, the US has traditionally taken a lion’s share of Cambodia’s GFT exports. With a 38 percent increase, this country is reaffirming a central role in the exports of Cambodian GFT goods. Surprisingly, Spain has taken over from Germany as a major market in Europe for the exports from the Kingdom,” he added.
According to Tropeano, in terms of 2025 GFT export prospects, the first half of the year seems to be following a positive trajectory with the imports of raw materials increasing, indicating the production of finished products in the Kingdom will also go up.
It may be noted that the GFT sector, the biggest export earner for the Kingdom, made a turnaround in 2024 after declining continuously for nearly 18 months from mid-2022 till the end of 2023.
The turnaround brought a big relief for the Cambodian government which was providing monetary support for the workers in the sector who lost jobs following factory closures or suspension of work.
According to the latest trade data, all segments under the GFT sector performed well in 2024, raising their exports, compared to the same period last year.
As per this, the exports of knitted apparel articles and clothing accessories earned $6.63 billion, registering a growth of 21.2 percent, compared to 2023. Non-knitted apparel articles brought in $3.15 billion with a growth of 31.9 percent year-on-year.
Articles of leather and travel goods brought in $2.05 billion, an increase of 20.4 percent year-on-year. Footwear exports earned another $1.68 billion in 2024 with a growth of 23.1 percent over 2023.
The GFT sector is one of the biggest employment generators in the country and has created nearly one million direct jobs, according to the International Labour Organisation (ILO).
Cambodia, meanwhile, is facing stiff competition from other Asian countries in this sector. This calls for skills development in the sector in the country, mainly to increase the productivity of workers.
Other challenges include the non-renewal of the Generalized System of Preferences by the US and the reduction in Everything But Arms benefits by the EU for exports from Cambodia.
