Apparel exports of Cambodia declined 6.43 percent to $1.775 billion in the first quarter (Q1) of 2021, compared to exports of $1.897 billion during the corresponding period of last year. The data released by the country’s General Department of Customs and Excise said this.
In the year 2020, Cambodia exported garments worth $7.420 billion, registering a decrease of 10.24 percent over the previous year, said the 2020 annual performance report of the country’s ministry of commerce.
To help the country’s garment, footwear, travel bag and tourism sectors cope with the downturn caused due to the COVID-19 pandemic and the accompanied lockdowns and supply chain disruptions, the Cambodian government has taken necessary steps including eight rounds of financial support programs.
Under the program the government provides $40 per month for each worker, while factory owners have to pay an additional $30 per worker, taking the total pay to $70 per worker per month.
A decline in international demand was one of the reasons for the fall in garment exports during January-March 2021. However, with the opening of lockdowns in the US, UK and other European countries, Cambodian exports are expected to increase in the second quarter.
Recently the Asian Development Bank in a recent report has forecast the Cambodian economy to grow 4 percent this year and 5.5 percent in 2022, as the economic recovery in major trading partners boosts demand for Cambodia’s exports.