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Cambodia's footwear sector ready for investment: ILO

Aug '19
Pic: Shutterstock
Pic: Shutterstock
Cambodia's footwear sector will provide more opportunities for investment and production than the garment sector has grown more rapidly than the garment sector in recent years, according to a research bulletin of the International Labour Organisation (ILO). Cambodia joined the list of top 10 footwear exporting countries in 2016 for the first time.

Between 2013 and last year, the footwear sector’s share in Cambodia’s total garment, textile and footwear (GTF) export value grew by 4.4 percentage points, while the garment sector’s share has decreased by almost 10 percentage points, said the bulletin on Cambodia’s GTF industry.

“This development raises the question of whether the footwear sector offers new opportunities for investment and production in Cambodia and invites further research,” it said.

Though the global export value of footwear declined between 2015 and 2017, production in the country increased steadily at an annual average of 27 per cent during the same period, it said.

Cambodia’s main export markets for shoes are the European Union (EU) (46 per cent), the United States (17 per cent), Japan (12 per cent) and Canada (five per cent). The United Kingdom, Germany and France are the main importers of the Kingdom’s footwear in the EU.

The EU and the US will remain very important export destinations for Cambodia due to current tariff exemptions, and based on interviews, workers and managers in the Kingdom seem confident in the footwear sector’s future profits and orders, said ILO. (DS)

Fibre2Fashion News Desk – India

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