Pampala, Secretary of State of the Ministry of Finance and Economy, pointed out that the substantial growth of Cambodia’s non-garment industry in recent years is a new achievement of the economic diversification policy implemented by the Royal Government of Cambodia.

State Secretary Pampala said this at the public forum on “Macroeconomic Management and the 2024 Budget” on the 19th.

He said the non-apparel sector is showing great changes, which is the direction of the government’s efforts to diversify the economy and exports. In the past, Cambodia’s garment industry exports accounted for 50 to 90 percent of total exports, but by 2023 it was less than 50 percent.

The Royal Government of Cambodia considers the four sectors of clothing, construction, tourism and agriculture as the economic base, which play an important role in driving Cambodia’s economic growth.

Mr. Pampala said that despite the decline in the garment industry in 2023, it remains an important sector for Cambodia’s economic growth, with more than 1,400 factories in operation in Cambodia employing over 800,000 workers in this sector. He hopes that the garment industry will improve in 2024, as Cambodia’s export trading partners will have a better economic situation in 2024.

According to the 2023 report of the General Administration of Customs, Cambodia’s garment and footwear exports exceeded 9.2 billion US dollars, down about 10% year-on-year; Exports of machinery and accessories amounted to $3.1 billion, up 56.6% year on year.

At the forum, a question was asked whether the fall of Japan’s economic ranking, from the world’s third largest economy to the fourth largest economy, would affect Cambodia’s economy.

In this regard, Pampala pointed out that the decline of Japan’s economic ranking has not had a significant impact on the Cambodian economy, after all, Japanese investors continue to invest in Cambodia.

It is understood that Cambodia’s main exports to Japan include: clothing, bags, shoes, furniture, cosmetics, stationery and leather goods. Cambodia’s main imports from Japan include machinery, automobiles, electronics, furniture, fabrics and plastic products. Cambodia and Japan are also looking for common opportunities to boost trade and investment, and many Japanese companies have recently come to Cambodia to study and inspect investment opportunities.

Source: Textile Dyeing and Finishing, Khmer Hua Daily