Cambodia’s apparel and footwear exports in 2015 grew by 6.7 per cent. The country’s main client remains Europe, on the strength of the GSP tariff treatment. The US is the country’s second market. Export growth was investment-driven, with 78 new production facilities launched in the course of the year. Nevertheless, investment is expected to slowdown in 2016, with approval for 38 projects, as opposed to approval for 57 projects last year.

Cambodia’s textile and apparel industry generated more than seven lakh jobs in 1,200 workshops. The industry is the mainstay of Cambodia’s economy. This pushed the government to forestall potential strikes by passing a bill last autumn which bolstered trade union law. In October, trade unions and employer representatives settled on a minimum wage rise.

Cambodia’s garment sector contributes 80 per cent to the country’s total export revenue. Over the years, the industry has faced intense internal and external pressures, including the global economic crisis, increased competition, and a trend of young Cambodians choosing to work abroad over factory jobs.

To increase their share in global garment export market Cambodia’s factories must deepen their commitment to creating decent working conditions that give it competitive edge. Focusing on working conditions across the sector will be critical in helping the industry navigate new challenges and further leverage economic development.