Thailand
Cambodia: Garment exports likely to decline in first half of 2023
Orders for garments and footwear have not picked up in Cambodia last year, and it will continue to decline, according to a senior official of the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC).
Ken Loo, TAFTAC Secretary General, told Khmer Times, “So far, orders for Cambodian footwear products from international markets, especially the European Union and the United States, have not improved. New orders for Cambodian footwear products may continue to decline in the first half of 2023.”
Loo attributed the decline to lower incomes in several countries as the Ukraine war pushed up prices of consumer goods and footwear. Garments export improved in 2022 due to the growth of orders, especially from the US, which accounted for 44 percent of the total shipment.
Cambodian Footwear Association President Ly Khun Thai said in the first half of this year orders for Cambodian footwear are expected to fall by about 30 percent compared to the first half of last year. The continued decline in orders will make most factories in Cambodia to reduce working hours and suspend more workers.
Companies, which had ordered goods from Cambodia after factories in some countries were disrupted due to Covid-19, have diverted their orders to those countries after improvement in the situation. However, “opening up of the country to Chinese and foreigners in 2023 will help boost the footwear market,” he said.
Removal of curbs will make Chinese tourists and investors seek investment opportunities in other countries, including Cambodia, he added.
In early December, Heng Sour, a spokesman for the Ministry of Labour, claimed that in 2023, this sector may be in a cautious situation as orders from Europe will decline.
According to the General Department of Customs and Excise report in the first half of 2022, Cambodia’s exports of garments, footwear and travel products reached $6.6 billion.
Source: https://www.khmertimeskh.com/501215004/garment-exports-likely-to-decline-in-first-half-of-2023/