Cambodia’s Garment-Related Exports Surge 7.7% in First Nine Months Amid Robust External Demand

The figures underscore the resilient recovery of the Southeast Asian nation's core manufacturing sector, which remains the country's largest foreign exchange earner and primary economic driver. According to ministry data, garment exports alone reached $9.23 billion—up 6.9% year-on-year—while textile exports experienced a sharp increase of 21.5% to hit $614 million. Meanwhile, footwear exports grew by 8% to $1.66 billion, and travel products expanded by 7.6% to $1.65 billion.

Thong Mengdavid, deputy director of the China-ASEAN Studies Center at the Cambodia University of Technology and Science, attributed the positive trade trajectory to Cambodia's expanding network of strategic trade partnerships and effective regional integration.
"Integration into the Regional Comprehensive Economic Partnership, alongside bilateral free trade agreements with China, South Korea, and the United Arab Emirates, has significantly improved market access and supply chain efficiency," Mengdavid noted in an analysis of the trade data. "The industry's upward trajectory is highly likely to continue, buoyed by robust external demand and a steady influx of new investments from regional partners."
Data from the Ministry of Labor and Vocational Training indicates that the vital manufacturing sector currently spans more than 1,800 active factories and branches across the country, employing approximately 1.1 million workers, the vast majority of whom are women from rural provinces.

Despite the encouraging nine-month figures, industrial analysts and business associations emphasize that local producers must navigate emerging international regulatory hurdles and structural overhead costs to maintain their competitive edge.

Speaking at a regional trade convention in Phnom Penh, European and local business representatives highlighted that tightening environmental expectations from Western retail brands will require long-term investments in factory energy efficiency. The European Union's upcoming corporate sustainability directives mean that exporters must increasingly demonstrate compliance with green supply chain standards to protect their market share.
"Cambodian manufacturers have demonstrated remarkable adaptability in recovering post-pandemic order volumes," said a senior trade consultant based in Phnom Penh who requested anonymity due to ongoing advisory contracts. "However, the next phase of growth relies on modernizing infrastructure, reducing utility bottlenecks, and ensuring seamless compliance with international environmental frameworks."

Government officials have pledged continued administrative support to streamline business operations and attract quality foreign direct investment. Under the country's liberal investment regime, authorities continue to promote special economic zones (SEZs) equipped with one-stop administrative services, tax holidays, and customs duty exemptions for raw materials and capital equipment.

Ministry of Commerce officials stated that policymakers are actively working with private sector stakeholders to expand trade promotion initiatives, deepen export diversification into high-value manufacturing, and leverage upcoming trade agreements entering into force later this year.

With the fourth quarter traditionally marking peak retail shipping periods ahead of the winter holiday season, industry stakeholders anticipate that export momentum will remain strong through the remainder of 2026, provided global market conditions and supply chains remain stable.