The newly launched China Textile Association in Cambodia (CTAC) will encourage more Chinese investment into the garment industry in Cambodia and provide assistance to existing manufacturers.
CTAC is an association of Chinese textile enterprises, including garment manufacturers, as well as related suppliers such as accessories factories, trim suppliers and sub-contractors. It will provide legal advice to investors and those considering investing in Cambodia, as well as liaise with the government. Its services will particularly target Chinese investors.

Cambodia is the world’s eighth largest exporter of garments and footwear. Around half of these shipments go to the EU and a quarter goes to the US. The economy depends heavily on the garment industry, which accounts for more than 78 per cent of the country’s total merchandise exports and 20 per cent of its annual economic growth and is the main non-agrarian employer in the country with nearly 9,00,000 workers employed in over 1,000 factories. These factories are almost exclusively Chinese-owned, and China’s influence in Cambodia will continue to grow as it finances major infrastructure projects. However, risks in the financial sector persist, with particular exposure in the construction and real estate sectors. External risks include the potential withdrawal of the EU’s trade preferences for Cambodia.