PHNOM PENH, Cambodia – Cambodia’s garments, footwear, and travel goods (GFT) sector demonstrated remarkable resilience and growth in 2024, with exports surging 23.33% to reach $9.08 billion during the first eight months of the year, according to the latest trade data from the General Department of Customs and Excise (GDCE).
Strong Recovery Signals Economic Rebound
The impressive growth figures represent a significant turnaround for Cambodia’s manufacturing sector, which serves as a critical pillar of the nation’s economy. Cambodia’s exports of garments, footwear and travel goods (GFT) surged by 23.33 percent in the first eight months of this year, compared to the same period last year, earning the country $9.08 billion, marking a substantial recovery from previous challenges.
The GFT sector’s performance is particularly noteworthy given its contribution to Cambodia’s overall export economy. As much as 51.7 percent of Cambodia’s total export earnings of $17.58 billion in the January to August 2024 period came from GFT goods, underlining the sector’s vital role in the country’s economic landscape.
Year-Long Growth Trajectory Continues
The positive momentum extended throughout 2024, with full-year data showing even stronger performance. Cambodia exported a total of US$13.92 billion worth of garment, footwear, and travel goods (GFT) in 2024, a significant increase of 23 percent compared to 2023, according to Ministry of Commerce reports.
Industry data suggests that Cambodia’s exports of garments, footwear and travel goods were worth $13.74 billion in 2024—a YoY rise of 23.78 per cent, with the sector representing a substantial portion of the country’s $26.19 billion in total export earnings.
Recovery from Previous Challenges
The 2024 growth represents a significant recovery from the sector’s performance in recent years. Cambodia’s GFT exports declined by 13.31 percent in 2023 amidst global challenges, from $12.80 billion earned in 2022 to $11.09 billion, leading to the suspension of work for many factory employees.
The Asian Development Bank has recognized this turnaround, noting that GFT exports rose by 16.9% year on year in the first half of 2024, rebounding from an 18.6% decline during the same period the previous year.
Government Support and Industry Relief
The turnaround has brought a big relief for the Cambodian government which was providing monetary support for the workers in the sector during the challenging period. The recovery has been crucial for employment in the manufacturing sector, which employs hundreds of thousands of Cambodian workers.
Regional Export Performance
Cambodia’s strong GFT performance is part of broader export success, with the country’s overall trade relationships showing positive trends. Recent data indicates that Cambodia’s exports to the United States surged to nearly $10 billion from January to December 2024, up 11 percent compared to the previous year, highlighting the importance of international markets for Cambodian products.
Economic Outlook and Future Prospects
The GFT sector’s robust performance supports broader economic forecasts for Cambodia. Cambodia’s economy is forecast to grow at 5.8% in 2024 and 6.0% in 2025, fueled by a further rebound in tourism and strong manufacturing prospects, according to the Asian Development Bank’s economic projections.
Industry observers expect the positive trend to continue into 2025, with Cambodia’s exports of garments, footwear and travel goods (GFT) surged by 25.23 percent in the first eleven months of this year, compared to the same period last year, earning the country $12.51 billion, indicating sustained growth momentum.
Key Takeaways
- Cambodia’s GFT exports reached $9.08 billion in the first eight months of 2024, up 23.33%
- The sector accounts for over half of Cambodia’s total export earnings
- Full-year 2024 GFT exports exceeded $13.7 billion, representing a complete recovery from 2023’s decline
- The growth supports broader economic forecasts predicting continued expansion in 2024-2025
- Strong international demand, particularly from the US market, continues to drive growth
About Cambodia’s GFT Sector
The garments, footwear, and travel goods sector remains Cambodia’s largest export industry and a critical source of employment for the country’s manufacturing workforce. The sector’s recovery demonstrates the resilience of Cambodia’s export-oriented economy and its ability to adapt to global market conditions.
Source Reference: This article is based on information originally reported by Khmer Times and data from Cambodia’s General Department of Customs and Excise. Original reporting can be found at:
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