Cambodia garment exports are up but its reports steep decline in percentage share. Cambodia’s garment exports increased around 4 percent year-on-year in 2014 to $5.75 billion, but its much less compared to the 20 per cent jump in the previous year. However, rise in exports is a positive sign since the industry was expecting a decline.

While the figures revealed by the Commerce Ministry’s import-export inspection department, did not break down exports by destination, most of the garment exports from Cambodia are to the US and Europe. Quarterly export figures started out strong last year but gradually slowed as the impact of falling orders from international brands began to hit factories. Many buyers started looking at other sourcing destinations after labour unrest over low wages that ended in military police killing few protesting workers.

According to a Kurt Salmon Global Sourcing Reference report, Cambodia is showing strong double-digit growth in six out of 10 product categories, but its market share remains relatively small. And CSR is not the only challenge for low-cost sourcing centers or those countries aspiring to be; many still lack the required infrastructure as well as the supply chain and production capabilities needed to offer volumes similar to those of China.

www.moc.gov.kh