Cambodia Investment Review
Cambodia’s garment, footwear and travel goods sector posted strong export growth in 2025, reinforcing its position as the country’s largest source of foreign exchange and a central pillar of its manufacturing economy.
According to a report from the Ministry of Commerce in January 2026, Cambodia exported garments, shoes and travel goods worth a combined $15.5 billion last year, representing a year-on-year increase of 15.7 percent.
Garments continued to dominate the sector’s export profile, while footwear recorded the fastest growth among the three product categories. Travel goods, including bags and luggage, also expanded, though at a more moderate pace.
The breakdown of exports in 2025 was as follows:
- Garments: $11.4 billion in exports, up 16.5 percent from the previous year, accounting for the largest share of total shipments.
- Footwear: $2.09 billion, marking a 24.5 percent year-on-year increase and the strongest growth rate across the sector.
- Travel goods: $2.02 billion in exports, up 3.8 percent, reflecting steadier demand conditions.
Together, the garment, footwear and travel goods industry accounts for around 50 percent of Cambodia’s total export value, underlining its outsized role in supporting trade performance and economic activity, according to the Ministry of Commerce.
Backbone of employment and industrial activity
Beyond export earnings, the sector remains one of Cambodia’s largest sources of employment. Data from the Ministry of Labor and Vocational Training shows that the industry currently comprises more than 1,500 factories and branch operations nationwide, employing over 900,000 workers, most of whom are women.
The concentration of employment in the sector has made it a key driver of household income and consumption, as well as a critical contributor to industrial output. While Cambodia has made efforts to diversify into higher-value manufacturing and services, garments, footwear and travel goods continue to anchor the country’s industrial base.
Trade diversification and regional integration
Analysts say the sector’s double-digit growth reflects Cambodia’s success in expanding beyond traditional export markets and deepening its integration into regional supply chains.
Thong Mengdavid, deputy director of the China-ASEAN Studies Center at the Cambodia University of Technology and Science, said the figures point to more effective market diversification in recent years.
He highlighted the role of the Regional Comprehensive Economic Partnership (RCEP), which has improved market access and trade efficiency across Asia-Pacific economies. The agreement links 15 countries, including China, Japan and South Korea, into the world’s largest free trade bloc.
According to Mengdavid, RCEP has supported stronger export flows by reducing trade barriers and improving supply chain connectivity. He added that the upward trend in exports is likely to continue this year, supported by external demand and ongoing investment inflows.
Investment outlook remains supportive
New investment from China, South Korea and Japan is expected to play a key role in sustaining momentum in the sector. These inflows are helping to expand production capacity while gradually improving manufacturing standards and compliance requirements.
Cambodia continues to position itself as a competitive manufacturing base in Southeast Asia, benefiting from relatively low labor costs and preferential trade access. While global demand remains uneven, particularly in Western markets, regional demand within Asia has provided a stabilizing effect for exporters.
The export figures were reported by Xinhua, citing official Cambodian data.
As Cambodia navigates an increasingly complex global trade environment, the performance of its garment, footwear and travel goods industry will remain a key indicator of export resilience, employment stability and the country’s broader industrial competitiveness.
