For the first quarter of the year, Cambodia’s exports to the United States increased by almost two per cent on the same period last year.Garment, textile and footwear products made up the bulk of exports.

The increase marked a significant turnaround after a big drop in exports at the end of last year.The market has bounded back after quite a significant drop last year. However, it’s still lower than it was in 2015.

The percentage share of Cambodia’s exports to the US among total exports has reduced from about 75 per cent in the past to just over 25 per cent last year, due to increasing exports to other markets.

Cambodia’s exports to the US have been affected by the way the markets operate. The industry is moving toward fast fashion and small quantity orders. Both buyers and investors are under huge pressure from shorter lead-times and demands for quick responses. The previous 12 to 18 week lead-times have been reduced to only seven to eight weeks.

Cambodia has been granted duty-free benefits for exports of travel goods such as luggage, backpacks, handbags and wallets to the US.

But the unavailability of raw materials, especially fabrics, poses a big threat to Cambodia.