Cambodia's trade-facing manufacturing base is entering a tougher 2026, with resilient garment exports remaining a key support while higher energy costs, border-related disruptions, and financial-sector confidence pressures test the economy, according to the ASEAN+3 Macroeconomic Research Office (AMRO). Manufacturing served as the main growth engine in 2025 for apparel exporters, importers, and sourcing teams, supported by resilient garment exports and sustained foreign direct investment (FDI) inflows despite the introduction of US reciprocal tariffs. AMRO noted in its 2026 Annual Consultation Report (ACR) that Cambodia's economy expanded by 5.3 percent in 2025, outperforming earlier expectations despite multiple shocks, but projected growth to moderate to 4.2 percent in 2026 as higher energy prices and continued border-related disruptions weigh on activity.
Indonesia’s Textile and Textile Product (TPT) sector has recently posted a promising statistical figure with a 6.36% year-on-year growth rate, outperforming national economic growth and the general non-oil and gas manufacturing sector. Yet, beneath these robust macro-level figures, the reality on the ground tells a different story: widespread layoffs in labor-intensive centers and a structural collapse in domestic supply chains caused by predatory import dumping. This article provides a comprehensive analysis of this economic paradox.
Global apparel brands and textile manufacturers are rapidly reengineering their procurement strategies, pivoting away from traditional commodity fibers toward high-tenacity, circular, and eco-certified materials. This structural realignment is heavily driven by stringent international regulatory frameworks, most notably the European Union’s Ecodesign for Sustainable Products Regulation (ESPR), which enforces strict material traceability and recycled content thresholds across imported textiles.
Bangladesh's textile and garment sectors are urgently pressing the government to take strategic steps to rescue export-oriented industries from critical pressures. During a crucial meeting with Prime Minister Tarique Rahman at his secretariat office in Dhaka, a delegation from the Bangladesh Textile Mills Association (BTMA)—led by President Showkat Aziz Russell—urged the government to introduce a special refinancing scheme for existing loans with a maximum interest rate of 5 percent.
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