KEY INDUSTRIES IN CAMBODIA

Things are looking good! Cambodia’s economic growth continues to develop steadily year upon year.

By 2015, Cambodia’s growth rate is expected to reach 7.5%.

Key industries currently include garment and light manufacturing, tourism and agriculture, as well as the emerging industries of construction and mining and exploration. 

What growth are Cambodian Key industries experiencing? 

• Since 2004, garment, light manufacturing, agriculture and tourism have been key drivers of Cambodia’s growth. GDP climbed more than 6% per year between 2010 and 2012.
• The Asian Development Outlook forecast for 2014 is 7.2%, with expected gains towards 7.5% as the European and United States markets recover.
• Exports of garments and footwear to the US and European Union rose by 11.3% in 2013, and milled rice exports doubled according to the Asian Development Bank.
• Cambodia is a member of the ASEAN Free Trade Area along side Brunei Darussalam, Malaysia, Singapore, Indonesia, Myanmar, Thailand, Philippines, Viet Nam and Laos.
• Cambodia is also party to bilateral agreements with China, Laos, Switzerland, Germany, Malaysia, Thailand, Indonesia, Singapore, Viet Nam, Japan and Korea (World Trade Organisation, 2013). 

Tell me more about the garment manufacturing industry? 

• The garment sector is a significant success story for Cambodia’s recent economic development and trade integration efforts.
• The garment sector continues to be Cambodia’s key engine of growth, exhibiting a year-on-year growth rate of 14.1% by mid-2014, supported by a greater labour market, according the most recent World Bank economic update report on the region.
• Garment manufacturing has developed somewhat more of an “ethical” reputation as a result of its “Better Factories Cambodia” social compliance programme.
• The garment industry currently employs more than 400,000 people and accounts for approximately 80% of Cambodia’s overall exports.
• Cambodian Ministry of Commence figures for 2013 revealed significant growth due to Cambodia’s low labour costs, as China’s minimum wages have increased alongside demand for basic apparel production.
• Cambodia relies on imports for textile raw material to sew apparel from China, Vietnam, South Korea and Japan.
• Cambodia is a tax haven for international companies as transfers of monies and importation into the EU and US is tax free and there are little restrictions compared to other garment manufacturing countries such as Bangladesh and Nepal.