Cambodia’s exports of garments, footwear and travel goods (GFT) jumped by 17.95 percent in the first seven months of this year, compared to the same period last year, earning the country $7.5 billion, according to the latest trade data of the General Department of Customs and Excise (GDCE).
The GFT exports, the biggest export earner for the Kingdom, made a turnaround this year after declining continuously for nearly 18 months from mid-2022 till the end of 2023.
About 52 percent of Cambodia’s total export earnings of $14.76 billion in the January to July 2024 period came from GFT goods.
Apart from bringing cheers to the industry, the change in fortunes has brought big relief for the Cambodian government which for months was providing monetary support for the workers in the sector who lost jobs following factory closures or suspension of work.
Ken Loo, the Secretary General of the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC), told Khmer Times yesterday that the rising trend would continue for the rest of the year.
The sector is on the path of recovery as global demand is rising, especially in the US and Europe, despite geopolitical uncertainties such as the Russia-Ukraine and Israel-Hamas wars. The industry in Cambodia believes that some of the worst experiences of the last two years could well be over.
According to the latest trade data, all segments under the GFT sector performed well in the January to July period this year, raising their exports, compared to the same period last year.
Accordingly, the exports of knitted apparel articles and clothing accessories earned $3.49 billion, registering a growth of 14.1 percent, compared to the January-July 2023 period. Non-knitted apparel articles brought in $1.81 billion with a growth of 29.5 percent year-on-year.
Articles of leather and travel goods brought in $1.14 billion in the first seven months this year, an increase of 14.8 percent year-on-year. Footwear exports earned another $924 million during this period with a growth of 14.3 percent over the same period.
Other made-up textile articles earned $119 million from January to July 2024, registering a growth of 36.9 percent, compared to the same period last year.
In July 2024 alone, the GFT exports earned the country $1.35 billion, a rise of 22.98 percent, compared to July 2023 when the country earned $1.09 billion.
The GFT sector is one of the biggest employment generators in the country and has created nearly one million direct jobs, according to the International Labour Organisation (ILO). The sector accounted for 11 percent of the economy and contributed around 50 percent of Cambodia’s real GDP growth as per its estimates in 2021.
It may be recalled that Cambodia’s GFT exports declined by 13.31 percent in 2023 amidst global challenges, from $12.80 billion earned in 2022 to $11.09 billion, leading to the suspension of work for many factory employees.
The Cambodian government in March 2023 started providing an allowance of $40 a month to each worker in the GFT sector whose labour contract was suspended following the slowdown in global demand. This was in addition to the $30 to be given to each suspended worker by the factory management.
