Cambodia’s Garment Exports Surge To $1.4 Billion In January As GFT Sector Powers Economic Growth

What does resilience look like in numbers?

In Cambodia, it looks like US$1.398 billion in exports in just one month.

That’s the value generated by the Kingdom’s garment, footwear, and travel goods (GFT) sector in January 2026 alone—a 7.2 percent increase compared to the same month last year. In a global market still navigating supply chain shifts, inflation pressures, and cautious consumer spending, that kind of steady growth isn’t accidental.

It’s structural.

Cambodia’s GFT industry isn’t just exporting clothes and shoes. It’s exporting stability, employment, and foreign currency strength. Let’s unpack what these numbers really mean—and why they matter far beyond factory floors.

January 2026 Export Growth: The Numbers Behind The Momentum

According to the Ministry of Commerce, Cambodia’s garment, footwear, and travel goods exports reached US$1,398 million in January 2026. That represents a 7.2 percent year-on-year increase.

At first glance, 7.2 percent might sound modest. But in the world of global manufacturing—where fluctuations can swing wildly—that’s controlled acceleration. It’s like a plane gaining altitude smoothly rather than jolting upward.

Breaking it down further:

• Garment exports: US$1,014 million (up 6.7%)
• Footwear exports: US$196 million (up 16.8%)
• Travel goods and bags: US$188 million (up 1.1%)

Each category tells its own story. Together, they paint a picture of diversification within the broader textile ecosystem.

And here’s the big headline: the GFT sector accounted for 46.5 percent of Cambodia’s total export value.

Nearly half.

That’s not just dominance. That’s economic backbone status.

Garment Exports Remain The Core Engine

Let’s start with garments—the heavyweight champion of Cambodia’s export economy.

Generating over US$1 billion in January alone, garment manufacturing remains the primary revenue driver. The 6.7 percent growth suggests steady international demand, particularly from Western markets.

Think about it. Every T-shirt, every jacket, every sportswear line stitched in Cambodian factories feeds into global retail giants. When global brands increase orders, Cambodian production lines hum louder.

But here’s the key: this growth isn’t explosive. It’s measured.

And measured growth is sustainable growth.

The garment sector has matured over decades, building supply chains, compliance systems, and labor frameworks that international buyers trust. That trust translates into repeat contracts and long-term orders.

Footwear Exports Jump 16.8 Percent: A Rising Star

Now, here’s where things get interesting.

Footwear exports surged by 16.8 percent year-on-year, reaching US$196 million.

That’s more than double the overall GFT growth rate.

Why the spike?

Several factors could be at play:

• Global brands diversifying production bases
• Increased investment in higher-value footwear manufacturing
• Expanding product categories beyond basic assembly

Footwear production often requires different machinery, materials, and skill sets compared to garments. Its rapid growth signals that Cambodia isn’t just relying on traditional textile assembly—it’s climbing the value ladder.

If garments are the steady heartbeat of the industry, footwear is the fast-growing muscle.

Travel Goods And Bags: Modest But Stable Growth

Exports of travel goods and bags reached US$188 million in January, marking a 1.1 percent increase.

That’s modest growth compared to footwear—but still positive.

The travel goods segment is closely tied to global mobility trends. Luggage, backpacks, and handbags depend heavily on tourism recovery and consumer travel spending.

While global travel continues to normalize post-pandemic, growth in this category may remain gradual rather than dramatic.

Still, stability matters.

Even incremental increases signal consistent demand, especially in key markets like the United States and the European Union.

Cambodia’s Largest Foreign Currency Earner

Here’s where the macroeconomic perspective kicks in.

The GFT industry accounts for 46.5 percent of Cambodia’s total export value. That makes it the country’s largest foreign currency earner.

Foreign currency inflows strengthen national reserves, stabilize exchange rates, and support imports of essential goods—from fuel to machinery.

In simple terms? When garments sell abroad, the entire economy breathes easier.

This isn’t just about factories. It’s about macroeconomic stability.

Key Export Markets: US, EU, Canada, And Japan

Cambodia’s GFT products primarily head to:

• The United States
• The European Union
• Canada
• Japan

These markets demand quality, compliance, and reliability.

Trade agreements and preferential market access play a critical role in maintaining competitiveness. Buyers compare production costs, shipping times, and tariff structures across multiple countries.

So why do brands continue sourcing from Cambodia?

Because the country has positioned itself as:

• Cost-competitive
• Politically stable
• Production-ready
• Increasingly compliant with global standards

In international trade, reputation is currency. And Cambodia’s GFT sector has built one.

1,500 Factories And 900,000 Jobs: The Human Dimension

Behind every export statistic are real people.

According to the Ministry of Labour and Vocational Training, the GFT sector includes more than 1,500 factories and branches, employing over 900,000 workers.

The majority of these workers are women.

Let that sink in.

Nearly a million livelihoods depend directly on the performance of this industry.

For many families, factory wages fund education, healthcare, housing improvements, and small business investments back home in rural provinces.

The GFT sector isn’t just an export machine. It’s a social stabilizer.

When export orders rise, overtime increases. When factories expand, hiring grows. When wages circulate locally, communities strengthen.

It’s a ripple effect that extends far beyond industrial zones.

Challenges Ahead: Can Growth Be Sustained?

Let’s be honest—global markets are unpredictable.

Consumer demand in Western economies fluctuates. Inflation pressures retail spending. Supply chains remain sensitive to geopolitical tensions.

So can Cambodia maintain this upward trajectory?

Sustaining growth will depend on several factors:

1. Maintaining competitive production costs
2. Improving productivity and skills training
3. Strengthening compliance with environmental and labor standards
4. Diversifying export markets

Diversification is particularly crucial. Relying heavily on a handful of markets exposes the sector to demand shocks.

The good news? The current growth suggests resilience.

And resilience is built on adaptation.

Moving Up The Value Chain

The future of Cambodia’s GFT sector isn’t just about producing more—it’s about producing smarter.

Higher-value garments. Technical footwear. Branded manufacturing partnerships. Sustainable materials.

As global consumers demand eco-friendly production and ethical sourcing, Cambodian factories have an opportunity to reposition themselves as sustainable manufacturing hubs.

Green factories aren’t just marketing tools. They’re competitive advantages.

And in an industry where margins are tight, competitive advantages matter.

Why January’s Growth Matters More Than It Seems

You might ask: why focus on a single month?

Because January sets the tone for the year.

Strong early-year performance signals solid order pipelines. It reflects confidence from international buyers placing advance contracts.

In manufacturing, momentum is everything.

If January starts strong, it often carries through the first quarter.

And if Q1 performs well, investor confidence strengthens.

That’s how macro narratives are built—one month at a time.

Final Thoughts: Cambodia’s Textile Powerhouse Stays On Course

Cambodia’s garment, footwear, and travel goods sector isn’t flashy. It doesn’t make headlines like tech startups or billion-dollar infrastructure deals.

But it quietly fuels nearly half the country’s exports.

With US$1.398 billion generated in January 2026 and year-on-year growth across all major categories, the GFT industry proves that consistency wins.

Garments remain the core. Footwear is accelerating. Travel goods are stabilizing.

And nearly one million workers rely on this engine to keep running.

In many ways, Cambodia’s GFT sector is like a well-tuned machine—steady, dependable, and resilient under pressure.

The question now isn’t whether it can grow.

The question is how high it can climb.

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