Garment workers package clothing at a factory in the Phnom Penh Special Economic Zone (PPSEZ) in the past. Hong Menea
Cambodia generated nearly $7.9 billion from the export of apparel and clothing accessories in 2023, marking a decline of nearly 13% compared to 2022.
In the final months of 2023, however, exports of the products began to recover, as reported by the General Department of Customs and Excise (GDCE).
The department’s trade statistics reveal that in 2023, exports under HS Codes 61 and 62, which include articles of apparel and clothing accessories, knitted and non-knitted, respectively, amounted to $7.87 billion.
The figure represents a decrease of 12.91% from $9.03 billion in 2022.
More specifically, exports under Code 61 were valued at $2.39 billion, down 10.4%.
International sales under the categories constituted 34.8% of the country’s total exports in 2023, which reached $22.64 billion, as per the GDCE.
In December 2023 alone, exports of Code 61 and 62 items surpassed previous months, reaching $762.72 million, an increase of 14.09% from $668.51 million in December 2022.
Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on January 16 that a series of global crises impacted the country’s international trade in 2023, resulting in a decline across almost all commodities.
He noted that Cambodian textile products, which have significant markets in developed countries like the US, Canada and EU members, experienced a downturn in orders due to economic challenges in those regions.
“The decrease in garment exports in 2023 is attributable to reduced demand in the international market. Cambodia’s production capacity is not the issue; in fact, it is expanding, with new textile factories opening,” he said.
He also noted that the recent uptick in shipments indicates a potential increase in textile exports for 2024 compared to 2023.
Ly Khun Thai, president of the Cambodian Footwear Association and chairman of the Cambodia Confederation of Investors Association (CCIA), highlighted that the decline in exports of apparel in 2023 was due to several factors.
He noted that these included a surplus of orders in 2022, leading to large stockpiles and geopolitical conflicts and wars affecting global economic growth.
“Nevertheless, [we saw] positive developments in the last few months of 2023,” he said.
“Exports of textiles from Cambodia to international markets are recovering. I believe that in 2024, Cambodia’s exports of all types of goods will surpass those in 2023,” he added.
Kaing Monika, deputy secretary-general of the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), previously told The Post that exports of garments to international markets have been declining since the latter half of 2022.
He attributed the downturn to economic difficulties faced by major countries due to the ongoing Russia-Ukraine war.
According to Monika, the main markets for Cambodian clothing include the US, EU, Japan, Canada and the UK.
As of early August 2023, the sector comprised a total of 1,077 factories, employing approximately 760,000 Cambodians, as reported by TAFTAC.
