Cambodia's Garment And Footwear Exports Up 11%

Economy

Cambodia's Garment And Footwear Exports Up 11%

Cambodia's garment and footwear exports increased by more than 11% in the first six months of 2018 to US$ 4 billion. According to the National Bank of Cambodia (NBC), the increase in the first six months of the year was almost double the 6.9% rise recorded in the first half of 2017, attributed to a rise in demand from the US market. The EU is reported to have criticised the Cambodian government's human rights record and have stated that it is reconsidering its Everything but Arms (EBA) programme for Cambodia. As a Least Developed Country (LDC) Cambodia benefits from the most favourable regime available under the EU's Generalised Scheme of Preferences (GSP), the EBA scheme. Other destinations for Cambodian garments and footwear include Canada, Japan and China, whose increasing demands are expected to offset the potential impact of the EBA suspension.

In 2017, the value of the sector's exports increased by 9.5% in value over 2016, to US$ 8.02 million, and about 10% in volume. The footwear segment is said to have continued to grow in importance in the year, up 14.4% to US$ 873 million. The garment and footwear accounted for 72% of the country's total merchandise exports in 2017.