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Cambodia GFT sector strategy focuses on high-end and unique products
The Cambodian government will upgrade the Garment, Footwear and Travel Goods (GFT) sector into environmentally sustainable, high value-added, focused on high-end and unique products and supportive of economic diversification before 2027, according to the Cambodia GFT Sector Development Strategy 2022-2027.
The GFT industry has been a priority sector and has contributed significantly to Kingdom’s socio-economic development.
“The government’s decision to prepare and implement the ‘Cambodia Garment, Footwear and Travel Goods (GFT) Sector Development Strategy 2022 – 2027’ is a priority that would not only serve as a roadmap for relevant stakeholders and as a response to the expectation of relevant parties, especially the private sector and development partners but also the implementation of this strategy has been a key measure under the ‘Rectangular Strategy – Phase IV in Rectangular II on Economic Diversification,” Prime Minister Hun Sen was quoted as saying in the report.
“The strategy will set common vision, objectives, goals, and strategic measures to further strengthen and manage the development of this sector to align with Cambodia’s development context and to better respond to changes in global and regional economic architecture,” Mr Hun Sen said.
The Prime Minister pointed out five strategic measures for the further development of the sector. It includes further strengthening human resources to increase productivity and create career paths for Cambodian workers or employees. The government will also look to attract investment in supporting industry, and promote market diversification for exports of garments, footwear, and travel goods.
While talking about the significance of the GFT Strategy 2022-2027, Ministry of Labour and Vocational Training spokesman Heng Sour told Khmer Times: “It is introduced at the right time when there are significant trends and developments that require additional attention at both policy and operational levels. It will help solve structural issues and enable Cambodia to seize opportunities to develop this sector as well as enhance national competitiveness and speed up economic diversification.”
“This strategy defines the clear vision, objectives and strategic measures that allow relevant ministries, institutions, development partners, employers, trade unions, brands and buyers to work together in order to upgrade this sector into one that is resilient, labour compliant, skills-based, focused on
high value-added, and environmentally sustainable by using clean and green resources.”
The report also pointed out that the garment, footwear, and travel goods industry in Cambodia account for only around two percent of the world’s total supplies.
“Such a small share of the global market makes this sector potential to increase the ability for further supplies, but also vulnerable to the changes in the global garment industry and other global trends including increasing protectionism, trade war or risks and other potential impacts such as the loss of trade preference partly or fully.”
While highlighting the significance of the GFT sector in the economic development of the country, the report, prepared by the Supreme National Economic Council, said, “Over the past 20 years (1997-2020), the number of factories and enterprises producing the garment, footwear, and travel goods registered with the Ministry of Labour and Vocational Training has increased from 64 to more than 1,200, including factories for direct export factories and subcontracting factories and enterprises that support the productions of export-oriented factories such as laundry, embroidery, dyeing, sewing, packaging etc. The number of workers/employees increased from 80,000 to more than 800,000.”
“Both factories and workers/employees have suffered severe setbacks such as the suspension of production, the contractual suspension of tens of thousands of workers and the shutdown of some factories due to the severe spread of Covid-19 pandemic in Cambodia’s export markets such as the United States and the EU.”
Emphasising the need for market diversification, the report said, “As of today, Cambodia’s garment, footwear, and travel goods has been mainly concentrated in six markets including the EU, the US, Canada, Japan, Asean, and other markets, with the shares to the EU and the US made up about 70 – 80 percent of total market.”
Source: https://www.khmertimeskh.com/501054342/cambodia-gft-sector-strategy-focuses-on-high-end-and-unique-products/