Cambodia’s garment exports rose by 11 per cent in the first quarter of 2015. The garment industry is Cambodia’s largest forex earner as it accounts for 80 per cent of the country’s total exports. The country exported apparel products worth $1.73 billion during January-March period this year, up 11 per cent from $1.56 billion over the same period last year.

Cambodia’s garment products mainly go to the European Union, the United States, and some Asian countries, particularly China, South Korea, and Japan. During the first quarter of this year, apparel exports to EU increased 16 per cent, exports to the US saw a one per cent fall and to other countries it rose 21 per cent.

Expectations are that the country’s garment sector would see higher growth for the rest of the year thanks to production increases as strikes over wages have ended. Cambodia has emerged a global manufacturing hotspot despite outbreaks of violent industrial action and safety concerns.

In recent years, Cambodia’s apparel and textile exports have grown at a fast pace. However, growth has slowed down in recent months, mainly due to an increase in wage bills of garment factory owners. While rise in wages has increased the cost of garment factory owners, the prices that Cambodian factories receive in their main markets have been stagnating or declining in recent years.