Cambodia’s GFT exports surge 16 percent to over $11 billion

Cambodia’s GFT exports surge 16 percent to over $11 billion

The exponential growth is a clear indication of increasing global demand for Cambodian-made products and the resilience of Kingdom’s manufacturing base amid a complex global economic landscape.

Even as the apparel and textiles industry faces potential challenges from global trade policy shifts, Cambodia exported $11.8 billion of garments, footwear, and travel goods (GFT) in the first nine months of the year, up 16 percent from $10.15 billion in the same period last year.

Exports of apparel and textiles accounted for $8,635 million between January and September of this year, up 16.8 percent from $7,387 million in the same period last year, a report from the General Department of Customs and Excise showed.

Export of footwear amounted to $1,538 million, up 26.7 percent from a year earlier, while travel goods accounted for $1,632 million, inched down by 4.8 percent compared to the previous year.

The good performance of the GFT sector contributed 52.7 percent to Cambodia’s total export value, which stood at a strong $22.38 billion for the January-September period.

Officials and industry leaders attributed the success to several key factors, including the quality of Cambodian products and the government’s strategic efforts to diversify markets.

This growth is a clear indication of increasing global demand for Cambodian-made products and the resilience of Cambodia’s manufacturing base amidst a complex global economic landscape, said Penn Sovicheat, Secretary of State and spokesman of the Ministry of Commerce.

Speaking to Khmer Times, Sovicheat said, “The growth of GFT product export showed the strong demand for made-in-Cambodia products in the international markets as the government is diversifying markets to boost more exports to new markets.”

The GFT sector, which employs nearly one million people, primarily women, is the largest foreign exchange earner for Cambodia.

The Ministry of Labor and Vocational Training’s spokesman Sun Mesa viewed the GFT exports as a critical factor in stabilising employment and creating new jobs within the manufacturing sector.

“The GFT sector continues to be a massive employment generator, and the rise in exports is directly linked to increased job stability and new opportunities,” he said.

The opening of new factories related to the GFT sector has already contributed to a growth in employment, he added.

The main markets for the Kingdom’s GFT products are the US, EU, Canada and Japan, according to the Ministry of Commerce.

The GFT industry is the largest foreign exchange earner for the Kingdom. The sector, however, is now facing uncertainty with ongoing US tariffs.

In July, the US administration revised down to 19 percent, from an initial 49 percent, effective August 1, on all Cambodian goods.

Concerns about potential manufacturing shifts were raised by trade unions and analysts in response to the announcement of the new tariff line.

In response, Deputy Prime Minister Sun Chanthol, also the First Vice-Chairman of the Council for the Development of Cambodia and Cambodia’s chief negotiator, confirmed that the tariff elimination was a calculated bargaining measure.

The 19 percent tariff is a step down from the former preferential duty-free status, but it remains manageable, enabling factories to continue operations and look towards production expansion, Chanthol said in August.

The Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC) said that the sector plays a crucial role in the national economy.

“The sector is significantly important for the national economy, contributing about 10 percent to Cambodia’s GDP and generating jobs for Cambodian labourers,” its Deputy Secretary-General Kaing Monika has previously said.

Shedding light on solutions during these challenging times, enhancing capacity along the production chains, value-addition at every stage of production, integrating advanced technologies and fostering innovation are some of the ways to boost the manufacturing sector to turn these challenges into great opportunities, he added.

The Asian Development Bank (ADB) has revised its growth forecast for Cambodia from 6.1 percent to 4.9 percent for 2025 and from 6.2 percent to 5.0 percent for 2026, reflecting economic challenges related to geopolitical tensions with Thailand and uncertainty surrounding the United States (US) export market.

Solid growth is expected through 2026, driven by continued strength in the industrial sector and steady inflows of foreign direct investment, the bank said in a report published in September.

Industry continues to be the main growth engine. Garment exports surged 22.2 percent year-on-year in the first half of 2025, partly due to US buyers stocking up in anticipation of higher tariffs on Cambodian imports, stated the report.

Despite cautious sentiment among importers stemming from trade policy uncertainty, the garment and non-garment manufacturing sectors are expected to remain strong, supported by a relatively favorable 19 percent US tariff rate, added the report.

The country is actively working to diversify its export destinations with the aim of building a more resilient and sustainable manufacturing base, even as the industry faces potential challenges from global trade policy shifts, the spokesman said.

Sovicheat also stressed the key role of the bilateral trade agreements under the FTAs and mega regional trade agreements, RCEP. “The FTAs with China and South Korea and the mega Regional Comprehensive Economic Partnership (RCEP), continue to create a favourable and stable environment for exporting Cambodian products.”

“These agreements, combined with our efforts to enhance supply chain resilience and improve labor standards, position the GFT sector for sustained, long-term growth,” he added.

As of June 2025, the factories in GFT reached a total of 1,682 factories, increasing from 1,566 as of the end of 2024, a report from the Ministry of Labor and Vocational Training showed.

Lim Heng, Vice-President of the Cambodia Chamber of Commerce, echoed the remark, praising the government’s drive for new FTAs, calling it a necessary step for the country’s economic future.

“These agreements and trade preference schemes are the primary means of boosting exports and investment by granting Cambodian goods access to vast new markets,” Heng said.

Last year, the country exported GFT products worth $13.92 billion, up 23 percent over a year earlier, according to an official report.

khmertimeskh