Behind the vibrant threads of global fashion lies a Cambodia powered by the hopes and labor of nearly 768,000 workers, predominantly young women from the countryside, who form the backbone of an industry accounting for a staggering 80% of the nation's total exports.
Key Takeaways
- In 2022, Cambodia's garment industry employed approximately 768,000 workers, with 93% being female, accounting for over 70% of the country's manufacturing workforce.
- As of 2023, there were 1,147 active garment factories in Cambodia registered with the Garment Manufacturers Association in Cambodia (GMAC), a slight decline from 1,200 in 2021.
- Women constitute 80-85% of the garment workforce in Cambodia, with many aged 18-25 years old, primarily from rural provinces.
- In 2022, Cambodia's garment exports reached $9.2 billion, accounting for 80% of total merchandise exports.
- The garment sector contributed 16% to Cambodia's GDP in 2022, up from 12% in 2019.
- US market absorbed 40% of Cambodia's garment exports in 2022, valued at $3.7 billion.
- Cambodia's garment exports fell 7.7% YoY in January 2023 due to global slowdown.
- Annual production capacity of Cambodian garment factories is 600 million pieces.
- In 2022, footwear and travel goods added $1.1 billion to garment-related exports.
- Average monthly wage in garment sector was $201 in 2022, including $192 base + $9 allowances.
- Minimum wage increased to $200 per month in January 2023 from $192.
- Overtime pay averages 4 hours daily, adding $50-70 monthly to wages.
- Cambodia has 450,000 sewing machines operational in garment factories.
- Total factory floor space exceeds 10 million sqm in industrial parks.
- Electricity consumption by garments: 1,200 GWh annually.
Cambodia's garment industry is huge, female-dominated, and vital to the nation's economy.
Economic Contribution
- In 2022, Cambodia's garment exports reached $9.2 billion, accounting for 80% of total merchandise exports.
- The garment sector contributed 16% to Cambodia's GDP in 2022, up from 12% in 2019.
- US market absorbed 40% of Cambodia's garment exports in 2022, valued at $3.7 billion.
- EU imports from Cambodia's garment industry totaled $4.1 billion in 2022, representing 45% of exports.
- Garment foreign direct investment (FDI) in Cambodia was $1.2 billion in 2022, mainly from China.
- The sector generated $2.8 billion in export revenue in the first half of 2023.
- Cambodia ranks as the 8th largest apparel exporter to the US, with 5% market share in 2022.
- Tax revenues from garment exports contributed 25% of Cambodia's industrial tax base in 2022.
- Over 1,000 factories produced 500 million garment pieces annually in 2022.
- Garment industry supports 2.5 million indirect jobs in Cambodia through supply chains.
- Export growth in garments was 20% year-on-year in Q4 2022.
- China supplies 60% of raw materials for Cambodia's garment production.
- Remittances from garment workers totaled $1.5 billion, boosting rural economies in 2022.
- The sector's multiplier effect creates 4 indirect jobs per direct garment job.
- Garment exports to Japan reached $800 million in 2022 under preferential tariffs.
- Poverty reduction in garment-dependent provinces was 15% from 2015-2022.
- Factory output value exceeded $10 billion in 2022.
- 70% of exports are knitwear and woven apparel.
- In 2022, Cambodia produced 120 million dozen garments for global brands.
Economic Contribution Interpretation
Cambodia's entire economic wardrobe is essentially stitched together by its $9.2 billion garment industry, which not only clothes the globe but also single-handedly dresses up its own GDP, tax base, and rural livelihoods.
Factory and Infrastructure
- Cambodia has 450,000 sewing machines operational in garment factories.
- Total factory floor space exceeds 10 million sqm in industrial parks.
- Electricity consumption by garments: 1,200 GWh annually.
- 95% of factories use solar panels for 10-20% power needs.
- Water usage averages 200 liters per worker daily.
- Phnom Penh Special Economic Zone hosts 120 garment factories.
- Average factory size is 8,000 sqm, employing 650 workers.
- Fire safety compliance in 85% of factories per 2022 audits.
- Ventilation systems upgraded in 70% of factories post-2020.
- Waste generation: 50,000 tons of textile scraps yearly.
- High-speed internet covers 90% of industrial zones.
- Canteen facilities serve 80% of workers daily meals.
- Dormitory capacity houses 500,000 workers nationwide.
- Automation (CNC cutting) in 30% of large factories.
- Emergency exits functional in 92% per GMAC audits.
Factory and Infrastructure Interpretation
Behind these numbers lies a vast and intricate city of thread and toil, stitching the world's wardrobe with impressive scale and sobering resource demands, all while cautiously stepping towards a more modern and, crucially, safer future.
Labor Rights and Compliance
- Over 200 strikes occurred in 2019, reduced to 50 in 2022.
- Freedom of association violations reported in 20% of factories.
- 75% compliance with minimum wage laws per 2022 inspections.
- Child labor under 15: 0.2% incidence in audited factories.
- Discrimination complaints: 15% female vs male pay gaps.
- Occupational accidents: 1.5 per 1,000 workers in 2022.
- 90% factories certified under Better Work program.
- Forced overtime rejected by unions in 40 cases yearly.
- Anti-union firings affected 1,000 workers in 2022.
- Social compliance audits conducted on 1,000 factories annually.
- Maternity leave compliance: 95% in large factories.
- Verbal abuse incidents down 30% due to training.
- Export bans threatened over EBA withdrawal in 2020, lifted partially.
- Grievance mechanisms active in 80% of factories.
- Sexual harassment policies in 70% of workplaces.
Labor Rights and Compliance Interpretation
It’s a landscape of grinding, cautious progress—where 90% certification does little to mask the sting of anti-union firings or the one-in-five factory still violating association rights, proving that dignity on the factory floor is sewn one stubborn stitch at a time.
Production and Exports
- Cambodia's garment exports fell 7.7% YoY in January 2023 due to global slowdown.
- Annual production capacity of Cambodian garment factories is 600 million pieces.
- In 2022, footwear and travel goods added $1.1 billion to garment-related exports.
- 85% of garment production is for export, with domestic sales under 5%.
- Monthly garment export volume averaged 45 million units in 2022.
- Key products include sportswear (30%), shirts (25%), and trousers (20%).
- Factory utilization rate was 75% in 2022 post-COVID recovery.
- Exports to the UK post-Brexit were $500 million in 2022 under GSP+.
- Over 200 brands source from Cambodia, including Nike, Adidas, and H&M.
- Silk and traditional textiles make up 2% of specialized garment exports.
- Lead time for garment orders averages 45-60 days from Cambodia.
- 2023 Q1 exports grew 1.5% to $2.3 billion.
- Vietnam overtook Cambodia as ASEAN's #2 garment exporter in 2022.
- Port of Sihanoukville handled 90% of garment exports by sea in 2022.
- Sustainable garment production certified factories: 150 in 2023.
Production and Exports Interpretation
Even with an annual capacity to clothe half of Europe in sportswear, Cambodia's garment industry finds itself in a rather fashionable bind, as a global slowdown trims 7.7% from its export hemline, forcing it to watch its regional neighbor Vietnam steal the catwalk as the new number two.
Wages and Working Conditions
- Average monthly wage in garment sector was $201 in 2022, including $192 base + $9 allowances.
- Minimum wage increased to $200 per month in January 2023 from $192.
- Overtime pay averages 4 hours daily, adding $50-70 monthly to wages.
- 60% of workers earn below $250/month after overtime in 2022.
- Piece-rate bonuses boost earnings by 20% for skilled sewers.
- Maternity benefits cover 100% salary for 6 months under law, but compliance is 80%.
- Average workweek is 48 hours, with 10-12 hours overtime common.
- Health insurance covers 70% of workers via National Social Security Fund.
- Seniority pay adds $5-20/month after 1-5 years service.
- Living wage estimate is $280/month, 40% above minimum in Phnom Penh.
- 2022 wage protests led to 5% increase agreement.
- Food allowances average $1.25/day per worker.
- Night shift premium is 20% above daytime rates.
- Deductions for dorms and utilities average 10% of wage.
- Supervisors earn 2x average worker wage at $400/month.
- Inflation eroded 8% of real wages in 2022-2023.
- 2023 minimum wage set at $203 with 20% performance incentive.
- Union dues withheld from 30% of wages for members.
Wages and Working Conditions Interpretation
Cambodia's garment industry paints a grim picture of legal progress where, despite a new $200 minimum wage, overtime is a mandatory subsidy, inflation is a silent pay cut, and the celebrated "living wage" remains a bitter punchline worn by workers who are, statistically, running faster just to fall further behind.
Workforce and Employment
- In 2022, Cambodia's garment industry employed approximately 768,000 workers, with 93% being female, accounting for over 70% of the country's manufacturing workforce.
- As of 2023, there were 1,147 active garment factories in Cambodia registered with the Garment Manufacturers Association in Cambodia (GMAC), a slight decline from 1,200 in 2021.
- Women constitute 80-85% of the garment workforce in Cambodia, with many aged 18-25 years old, primarily from rural provinces.
- The average age of garment workers in Cambodia is 27 years, with 60% having less than 5 years of experience in the sector.
- In 2021, migrant workers from rural areas made up 65% of the garment factory employees in Cambodia's industrial zones.
- Turnover rate in Cambodia's garment factories averaged 25% annually in 2022, driven by low wages and poor conditions.
- Over 90% of garment workers in Cambodia live in factory-provided dormitories, often housing 10-20 workers per room.
- In Phnom Penh's industrial zones, garment factories employ 450,000 workers, representing 60% of the capital's manufacturing jobs.
- Youth employment (under 25) in Cambodia's garment sector stands at 45%, with many entering without prior vocational training.
- Disabled workers represent less than 1% of the garment workforce in Cambodia, despite legal quotas of 2%.
- In 2023, seasonal hiring in Cambodia's garment factories increased by 15% to meet peak export demands.
- Union membership among garment workers in Cambodia covers 40% of the workforce, down from 50% in 2019.
- Average daily absenteeism in Cambodian garment factories was 5% in 2022, linked to health issues and long commutes.
- Over 50,000 new garment jobs were created in Cambodia between 2020 and 2022 despite COVID disruptions.
- Ethnic minorities account for 10% of garment workers, mostly from indigenous groups in Northeast Cambodia.
- Night shifts in garment factories employ 20% of the workforce, primarily for export deadlines.
- Female supervisors make up 15% of management in Cambodia's garment industry as of 2023.
- Child labor incidents in garment factories dropped to under 0.5% in 2022 due to monitoring programs.
- 70% of garment workers have secondary education or less, limiting skill diversity.
- Factory closures in 2021 led to 50,000 garment job losses, mostly affecting young women.
Workforce and Employment Interpretation
The lifeblood of Cambodia's economy beats in the rhythm of sewing machines operated overwhelmingly by young women from the countryside, who, despite forming a staggering 70% of the nation's manufacturing muscle, navigate a landscape of fleeting jobs, cramped dormitories, and a persistent churn driven by the search for better conditions.
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