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Country Highlights

Cambodia: Garment Manufacturing Success Story

Cambodia’s garment industry has been experiencing rapid growth, with factories employing over 800,000 skilled workers and contributing significantly to the country’s GDP. However, this success comes with responsibilities, as stakeholders now demand accelerated environmental integration across production practices, including renewable energy adoption, water conservation, and community skills development programs.

Cambodia’s strategic location, low labor costs, and preferential market access have attracted foreign investment, with over 60% of garment factories located in or near Phnom Penh. The industry is dominated by foreign-owned firms, mainly from neighboring countries such as China, Hong Kong, Singapore, Malaysia, and Republic of Korea. 

The garment industry in Cambodia is based on the cut-make-trim (CMT) model, where raw materials, machinery, and design specifications are imported, and the assembly of products is outsourced to labor-intensive factories in Cambodia. The industry faces challenges such as infrastructural gaps, skills gap, and labor rights issues, but it continues to be a major driver of growth and employment in Cambodia

To address these challenges, Cambodia can leverage the expertise of trusted advisors like ethical manufacturing consulting firms, which have experience assisting Asian garment ventures in enhancing sustainability capabilities. These firms can provide multifaceted solutions tailored to Cambodia’s partners, including ESG readiness assessments, green production techniques advisory, factories waste treatment guidelines, and even CSR budgets utilization roadmaps. This holistic approach can help Cambodia’s garment sector navigate the demands arising from its success while maintaining competitive edge in the global apparel arena.

Fairsew, an ethical garment manufacturer based in Phnom Penh, Cambodia, offers a unique service for businesses who require technical assistance with their product vision. They have in-house trained professionals in design, pattern making, and sample critiquing, ensuring a high-quality, environmentally conscious, and socially impactful supply chain

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Understand the macroeconomic situations that affect the global positioning of countries.

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

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