Manufacturing and Textiles

Cambodia has a thriving manufacturing and textiles sector that offers several advantages, and it attracts businesses and investors looking to benefit from these opportunities. Here’s what Cambodia has to offer in manufacturing and textiles, along with the potential benefits for foreign businesses:

What Cambodia Offers in Manufacturing and Textiles

  1. Competitive Labor Costs: Cambodia is known for its relatively low labor costs, making it an attractive location for labor-intensive industries like textiles and manufacturing.
  2. Access to Global Markets: Cambodia benefits from trade agreements like the Everything But Arms (EBA) initiative with the European Union, which grants duty-free and quota-free access to the EU market. This is a significant advantage for businesses in these sectors.
  3. Skilled Workforce: Cambodia has a skilled workforce with expertise in garment manufacturing, textiles, and other related industries. Many workers have experience in garment assembly and quality control.
  4. Emerging Textile and Garment Industry: Cambodia’s textile and garment industry has experienced rapid growth and is considered one of the key players in the global apparel supply chain.
  5. Investment Incentives: The Cambodian government offers various investment incentives, such as tax breaks and special economic zones, to attract foreign investors in manufacturing and textiles.
  6. Political Stability: Cambodia has enjoyed political stability in recent years, providing a conducive environment for business operations.
  7. Infrastructure Development: Improvements in infrastructure, such as transportation and logistics, have enhanced the efficiency of supply chains for these industries.

What Foreign Businesses Can Benefit From in Cambodia

  1. Cost Efficiency: Foreign businesses can benefit from the cost-efficient labor force and manufacturing processes in Cambodia, resulting in lower production costs.
  2. Market Access: Cambodia provides access to the European Union market through preferential trade agreements. This is advantageous for businesses looking to expand into the EU.
  3. Trade Opportunities: Cambodia serves as a gateway to other ASEAN (Association of Southeast Asian Nations) markets, allowing businesses to explore opportunities in the broader Southeast Asian region.
  4. Collaboration with Local Suppliers: Businesses can collaborate with local suppliers for raw materials and textiles, reducing the need for extensive imports.
  5. Growth Potential: Cambodia’s textile and garment industry continues to grow, presenting opportunities for businesses to become part of this expanding sector.
  6. Sustainability Initiatives: The industry is increasingly focusing on sustainability and ethical manufacturing, which aligns with international trends and consumer demands.
  7. Trade Partnerships: Cambodia’s trade relationships with various countries provide opportunities for businesses to engage in global trade.


Cambodia’s manufacturing and textiles sector offers a compelling combination of cost-effective production, market access, and growth potential. Foreign businesses that leverage these advantages can find opportunities to expand their operations, diversify their supply chains, and tap into Cambodia’s role in global trade and manufacturing.