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Cambodia achieves a first in global garment supply chain

26 Nov '25
4 min read
Cambodia achieves a first in global garment supply chain
Pic: I Love Coffee dot Today/Shutterstock

Insights

  • Cambodia's first legally binding supply-chain model ties brand purchasing practices to factory-level wage agreements, aligning with due-diligence laws, improving stability, and supporting a path to living wages.
  • Limited brand participation and sourcing volatility remain challenges.
  • It can help Cambodia transition to a premium, future-ready manufacturing hub.

The initiative will benefit more than a million workers in Cambodia’s garment, footwear, and travel-goods sector. It marks a decisive shift away from voluntary Corporate Social Responsibility (CSR) programmes by embedding binding obligations into brand–union agreements that support wages negotiated through collective bargaining at factory level.

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