Export Performance
Cambodia’s garment, footwear, and travel goods (GFT) sector exported USD 7.38 billion in the first half of 2025, a 22% increase from USD 6.02 billion in H1 2024. Key destination markets include the United States, European Union, Canada, and Japan. Cambodia currently exports GFT products, solar panels, furniture, and bicycles to the US under the Most Favoured Nation (MFN) trade preference scheme.
Sector Composition and Market Dynamics
- Garments: USD 5.28 billion; +22% YoY
- Footwear: USD 1.03 billion; +33% YoY
- Travel Goods: USD 1.06 billion; +12.6% YoY
Industrial Scale, Employment, and Economic Impact
- Number of factories: 1,608
- Total employment: ~913,000 workers, predominantly female
The GFT sector remains Cambodia’s largest foreign exchange earner. In 2024, exports of GFT products totaled USD 13.92 billion, a 23% increase over 2023.
Tariff Development
The US reduced Cambodia’s import tariff from 46% to 19%, effective August 1, 2025, following a trade deal in which Cambodia lowered tariffs on US goods to 0% and agreed to purchase Boeing planes. This adjustment is expected to support the garment industry, align Cambodia’s tariffs with regional competitors such as Indonesia and Malaysia, and enhance the sector’s attractiveness for foreign investment.
Source: Kingdom’s exports of garments, footwear, and travel goods soar 22 percent | Khmer Times