Cambodia Faces 14.8% YoY Decline in Textile-Garment Exports in Jan-Nov 2023
- Details
- Published: Tuesday, 09 January 2024 01:12
Cambodia's textile-garment sector has encountered a significant decline in exports, registering a 14.8% year-on-year (YoY) drop in the first 11 months of 2023. According to data from the commerce ministry, global economic slowdown, particularly in the European Union (EU), is cited as the primary factor behind this downturn.
During the January-November 2023 period, Cambodia exported textiles, garments, footwear, and travel products amounting to $9.9 billion, reflecting a 15% YoY decrease. The government attributes the decline to the challenging economic conditions, especially in key markets like the EU.
Textile and apparel exports, accounting for a significant portion of Cambodia's overall exports, were valued at $7.22 billion during the period, marking a notable decline of 14.8% YoY. The sector faced headwinds as global economic uncertainties, and weakened demand, particularly from the EU, impacted Cambodia's export performance.
Exports of footwear, another crucial component of Cambodia's export portfolio, experienced a substantial decline of 23% YoY, with a total value of $1.21 billion during the first 11 months of 2023. Additionally, travel goods, including bags and luggage, recorded a YoY decrease of 9.8%, amounting to $1.47 billion.
The government and industry stakeholders are closely monitoring the situation, seeking ways to navigate the challenges posed by the global economic slowdown. The EU, traditionally one of Cambodia's major export destinations, has been particularly affected, contributing to the overall decline in the textile-garment sector.
Cambodia's reliance on the textile and apparel industry makes it sensitive to fluctuations in global demand and economic conditions. The government is exploring strategies to diversify its export markets and enhance resilience in the face of economic uncertainties.
While grappling with the current economic challenges, Cambodia is also assessing opportunities to strengthen its trade relations with other regions and exploring avenues for industry growth. As the global economic landscape continues to evolve, Cambodia's textile-garment sector remains adaptive, with a focus on sustainable strategies to overcome current challenges and foster long-term resilience. Industry players and policymakers are working collaboratively to navigate these challenges and position Cambodia's textile-garment sector for sustained success in the future.