Phnom Penh, October 2025 – Cambodia’s textile and garment industry is undergoing a major sustainability transformation as manufacturers race to meet international environmental standards and position the Kingdom as a responsible supplier in the global market.
Industry Embraces Green Certifications
As of 2025, Cambodian textile manufacturers are increasingly investing in eco-friendly production methods and pursuing international green certifications to meet evolving global demands. Factories across the country are now achieving Leadership in Energy and Environmental Design (LEED) certifications and Global Organic Textile Standard (GOTS) compliance, demonstrating their commitment to environmental sustainability.
According to industry data, compliance with global sustainability standards such as the EU’s Green Deal and the Corporate Sustainability Due Diligence Directive (CSDD) has become a critical requirement for Cambodian exporters in 2025. In response, manufacturers are proactively adopting renewable energy sources, sustainable materials including organic cotton and recycled polyester, and eco-friendly production methods.
Cambodia Global Textile Summit 2025 Sets Sustainability Agenda
The Cambodia Global Textile Summit 2025, held on March 31 – April 1, marked a flagship event positioning Cambodia at the center of global apparel supply chain discussions. Organized by the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC), Better Factories Cambodia (BFC), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the summit brought together government representatives, international brands, and workers’ organizations to advance sustainability, competitiveness, and innovation.
The summit focused on Cambodia’s transition from Least Developed Country (LDC) status and the implementation of sector strategies to ensure the industry remains competitive, sustainable, and inclusive.
Government Prioritizes Circular Economy
The Cambodian government has set ambitious priorities for 2024-2025 under the Partnership for Action on Green Economy (PAGE) initiative. At the National Steering Committee meeting in June 2024, chaired by H.E. San Vanty, Permanent Secretary of State at the Ministry of Environment, authorities identified key work streams including advancing a circular economy by reducing single-use plastics and applying 4R principles (Reduce, Reuse, Recycle, Recover) in the garment industry.
Circular Fashion Partnership Tackles Textile Waste
The Circular Fashion Partnership Cambodia, part of the Global Circular Fashion Forum (GCFF), is expediting the recycling of post-industrial textile waste in the Kingdom. With Cambodia’s garment sector generating approximately 140,000 tonnes of textile waste annually, the initiative’s pilot phase focuses on refining textile sorting processes and fostering business models that significantly reduce reliance on landfilling and incineration.
Green Growth Pilot Trains Sustainability Officers
A groundbreaking Green Growth Pilot project has been training personnel to serve as environmental sustainability officers in Cambodian garment factories. The initiative, implemented under the US-SEGA Cambodia Workforce Development Activity in partnership with the Global Green Growth Institute (GGGI), Geres, Cambodian Garment Training Institute (CGTI), and TAFTAC, has upskilled existing factory staff and trained new recruits through comprehensive sustainability courses.
The June 2025 Green Growth Workshop and Roundtable in Phnom Penh brought together approximately 40 key stakeholders to assess sustainability-focused and clean energy jobs in Cambodia and explore opportunities for scaling similar initiatives.
Export Growth Driven by Trade Agreements
Cambodia’s textile and apparel exports are expected to grow steadily in 2025, supported by trade agreements including the Cambodia-China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP). These agreements facilitate better access to Asian markets, with China poised to become a bigger buyer of Cambodia’s textiles and apparel.
The textile sector accounts for approximately 70% of Cambodia’s total exports, with key markets in the United States, European Union, and Japan. Cambodia benefits from duty-free access to the EU under the Everything But Arms (EBA) scheme, though exporters face increasingly strict sustainability regulations.
Industrial Transformation Roadmap 2023-2027
The Industrial Transformation Map for the Textile and Apparel Industry 2023-2027 continues to guide the sector’s evolution toward a globally competitive and environmentally sustainable industry. The roadmap, which complements the Cambodia Garment, Footwear and Travel Goods (GFT) Sector Development Strategy 2022-2027, includes strategic measures for:
- Upgrading apparel production models
- Diversifying raw material sourcing
- Expanding exports to diverse markets
- Bolstering skill development and productivity
- Adopting advanced technology
- Upholding environmental, social, and governance standards
Meeting International Brand Requirements
Major global brands including H&M, Adidas, Gap, Zara, and Levi’s have increased their sustainability requirements for suppliers. Cambodian manufacturers are responding by aligning their practices with these expectations, enhancing Cambodia’s reputation as a responsible and competitive supplier in the global textile market.
Challenges and Opportunities Ahead
While Cambodia’s sustainability push presents significant opportunities, the sector faces challenges including global economic uncertainties, wage increases, stricter compliance requirements from international buyers, and heavy dependence on imported raw materials. Industry experts emphasize the need for investments in local raw material production and diversification into value-added products to enhance resilience.
Despite having only 12 LEED certifications as of 2023 compared to Bangladesh’s 213, Cambodia is rapidly closing the gap as more factories pursue green certifications to meet 2025 market demands.
Looking Forward
As Cambodia positions itself as a leader in sustainable textile production, the combination of government initiatives, private sector investment, and international partnerships is creating a framework for long-term competitiveness. The country’s commitment to environmental sustainability, circular economy principles, and worker welfare signals a strategic repositioning that could serve as a model for sustainable development in Southeast Asia’s textile industry.
For businesses seeking to enter Cambodia’s evolving textile and apparel market, understanding these sustainability initiatives and certification requirements is essential for success in 2025 and beyond.
About Cambodia Market Entry
Cambodia Market Entry (www.cambodiamarketentry.com) provides comprehensive market intelligence, regulatory guidance, and business entry strategies for companies looking to establish or expand operations in Cambodia’s dynamic business environment.
