Cambodia Sourcing: Garments 2016

 

In Cambodia Sourcing: Garments 2016, buyers can find:

Verified exporters – Featured suppliers offering various garments

Products – Full-color images with specifications & prices

Supply market intelligence – Supply centers, industry trends, challenges, production and pricing

To read the full report, click on the section tabs below.

Sector highlightsSuppliers & productsIndustry overviewExport dataProduct featuresPDF downloadSupplier list

Cambodia Sourcing: Garments 2016 Sector highlights

Industry overviewExport dataProduct features
  • The country adopts the “factory Asia” economic model, deploying low-cost labor to manufacturers for export.

  • Manufacturing sectors grew by 11.7% in 2015, being the biggest overall contributor to GDP.

  • The sector has 1,490 factories with more than 872,000 workers.
  • Cambodia ranked 8th among the top 15 garment and footwear exporters in 2014.

  • The sector contributed 10.2% of the GDP in 2015 with the sale revenue of $7.1 billion.

  • The industry shares 80% of the country’s total export.
  • Most fabrics are imported.

  • Each enterprise released around 100 designs annually.

  • QC team has 10 to 20 people.

Cambodia Sourcing: Garments 2016 Suppliers & products

Cambodia Sourcing: Garments 2016 Suppliers & products

Cambodia Sourcing: Garments 2016

• Casual wear • Formal wear • Sportswear

Our team has curated a list of garment suppliers in Cambodia. Each has company details and contact details.

Sections


Products

Below is a selection of products from our featured suppliers. Click on the images to find more products and supplier information.

For a complete listing of the featured suppliers, click here.

Casual wear   
Indonesia Sourcing: GarmentsIndonesia Sourcing: GarmentsIndonesia Sourcing: GarmentsIndonesia Sourcing: Garments
Formal wear   
Cambodia Sourcing: GarmentsIndonesia Sourcing: GarmentsIndonesia Sourcing: GarmentsIndonesia Sourcing: Garments
Sportswear   
 Indonesia Sourcing: GarmentsIndonesia Sourcing: GarmentsIndonesia Sourcing: Garments

Cambodia Sourcing: Garments 2016 Industry overview

Cambodia Sourcing: Garments 2016 Industry overview

Cambodia Sourcing: Garments 2016

• Casual wear • Formal wear • Sportswear

This section discusses key issues affecting export manufacturers in Cambodia, offering insight into industry composition and important supply centers.

Cambodia garments 2016 highlights

Garments contributed 80 percent to Cambodia’s total exports and 10.2 percent to GDP in 2015, estimated at $18.16 billion by the World Factbook. GDP has grown 7 percent yearly since 2011.

The sector is mainly involved in CMT, which is the simplest and has the lowest value in the production chain.

The Garment Manufacturers Association in Cambodia (GMAC), however, has set up the Cambodia Garment Training Institute to boost competitiveness by training workers. The GMAC is in the process of searching for technical advisers, having been granted a $3 million loan by the AgenceFrançaise de Développement.

The new institute will work toward building a “competent” domestic workforce to replace more than 8,000 positions that are currently held by expatriates.

This effort is also in line with the government’s strategic objectives under the Industrial Development Policy for 2014-2024. The policy provides short-term measures for technology transfer to handicrafts, and strengthens the management of innovation and train industrial patent. Long term, it intends to build human resource capacity for research and development of industrial technology.

Exports

Cambodia ranks eighth among the world’s leading garment suppliers, with China taking the top spot. In 2014, Cambodia had a 1.8 percent share of the global market, quite insignificant when taken on its own. The figure, however, is noteworthy considering it represents a 64 percent jump from 2005 when the country had just 1.1 percent share.

The domestic garments industry is often described in tandem with footwear, be it in terms of exports, industry size and supplier capability. In 2015, combined exports reached $6.3 billion, representing nearly 8 percent growth.

The EU was the biggest destination for Cambodia garments and footwear in 2015, accounting for 46 percent of exports, followed by the US with 30 percent. Other countries, including Canada and Japan, absorbed the rest.

Cambodia Sourcing: Garments 2016 Industry overview exports

Competitive advantages

The country’s steady economic growth has driven investments that contributed good impact to the sector’s advantages.

As the labor costs increased in China and other Asian countries, Cambodia with lower labor costs was able to attract more investment. The minimum monthly salary in Cambodia is $140, which is lower than in other Asia manufacturing hubs. The minimum monthly wage in China, for instance, is about $307 while it is $265.68 in Thailand and $156 in Vietnam.

Through investment in equipment with advanced technology, the sector has increased its productivity, allowing companies to expand their export capacity and explore other markets.

New investments are worth $377 million, majority of which came from mainland China, the UK, Taiwan and Hong Kong. In 2015, there were 75 newly opened garment factories, bringing the total number of registered factories to 1,490.

Challenges

There are at least three main factors hindering growth of Cambodia’s garment sector, namely low labor skills, high importation levels and production costs, and policy issues.

The low level of skills among garment workers stems from the fact that 60 percent of manufacturers are using only simple production processes.

Importation in the garment industry, on the other hand, is quite high. For materials alone, most fabrics, thread, accessories and trims are sourced abroad. About 70 percent of fabrics are from mainland China, Taiwan and Hong Kong, and 16 percent from Southeast Asia.

Transporting raw materials to and finished goods from Cambodia is costly, as the country still needs to develop its logistics and infrastructure, particularly building railways and waterways. Consequently, this impacts the pricing of garment exports.

The country also imports most of its electricity supply from neighboring Vietnam, Thailand and Laos, resulting in power rates that are among the highest in the Greater Mekong Sub-Region, ranging from $0.15 per kWh in Phnom Penh to more than $1 per kWh in some rural areas.

The sector expected decline of electricity prices within the next three years, as the country will have its local source from the seven hydropower plants that will supply 70 percent of the domestic demand. With lower electricity costs, suppliers can lower export costs per container by 120 percent or $552 per container.

A new trade union law that was recently passed to the National Assembly for discussion has divided opinions in Cambodia, contributing negative impact to the industry’s growth. Labor groups, human rights advocates and some politicians oppose the passage of law, saying that it will suppress the workers’ rights and their unions.

Seven years after it was drafted, lawmakers are still resolving with various involved parties conflicts about the law. Its pending passage, however, is already affecting affected worker conditions of the workers.

According to GMAC, the new law would help propel the garment sector if it would provide mutual benefits to employers and employees.

Industry composition

The garment and footwear sector, Cambodia’s largest export earner, has 1,490 registered factories, including 75 that opened in 2015. The plants employ more than 872,000 workers.

The majority of factories are in the capital, Phnom Penh, and the surrounding provinces of Kandal, Kampong Speu, Kompong Cham, KompongChnang, Kandal and Sihanouk Ville, where the port is situated. These locations have easy access to materials, particularly fabrics, and to different modes of transportation. These centers have regular power and water supply.

The top five garment factories with more than 10,000 workers each are Cambo Handsome Ltd, Makalot Garments (Cambodia) Co. Ltd, Sabrina (Cambodia) Garment Mfg Corp., United Apparel Cambodia Inc. and Goldfame Manufacturing Knitter Ltd.

Small companies have average annual export sales of $200,000with 11 to 50 employees and two people for QC. They focus on casual-, formal, and baby and children’s wear production, and monthly output is worth $16,748.

Midsize suppliers average $950,000 in overseas sales. Monthly output is $34,000 with 51 to 100 workers and five QC members. Companies produce mainly casual-, formal, baby and children’s, and under- and sleepwear.

Large enterprises export $1.5 million worth of products. They have more than 100 employees and 10 people in QC, and monthly output is $95,564. They offer all product categories, including sportswear.

Supplier locations map

Cambodia Sourcing: Garments 2016 Industry overview Supplier Locations Map

Cambodia Sourcing: Garments 2016 Export data

Cambodia Sourcing: Garments & Fashion Accessories Export data Belts Fashion bags and wallets Fashion jewelry Headwear and neckwear

Cambodia Sourcing: Garments 2016

• Casual wear • Formal wear • Sportswear

This section offers recent export data on the Cambodia garments sector, including export value, export markets by product category, sales and prices.

Information on the sector as a whole comes from local and international trade organizations.

Cambodia garments 2016 sector exports

Sources: Local & international trade organizations.

Cambodia garments

Cambodia Sourcing: Garments 2016 Product features

Cambodia Sourcing: Garments 2016 Product features

Cambodia Sourcing: Garments 2016

• Casual wear • Formal wear • Sportswear

This section offers information on how trends in materials, design and manufacturing are impacting prices offered by Cambodia garment suppliers.

Buyers can also learn more about Cambodia materials and the common price ranges of certain design features.

Latest trends of garments from Cambodia include luxurious and vintage summer wear, as most queried suppliers are targeting the midrange and high end markets. Example of a new popular design is a vintage dress for a seaside romantic dinner. Makers use recycled fabrics from factories in Phnom Penh, as they want to take part in reducing waste from garment factories.

Materials & sourcesDesign & manufacturingQuality control & customizationPricing
  • Cambodia garment suppliers purchase handwoven silk fabrics from local weavers.

  • Makers currently import 300 metric tons of silk thread per year to supply the demand, while they source 3 to 4 metric tons from local farms.

  • Suppliers import most fabrics worth $1.47 billion, accounting for 9.9 percent of the total imports in 2014.
  • Enterprises release an average of five product designs per month.

  • The average design team has at least five people.

  • Most companies produce more casual wear and sportswear because of less complexity.
  • QC is normally carried out by 10 to 20 and 30 personnel for the small, medium and large enterprises respectively.

  • Visual inspections involve the consistency of size, stitches and colors.

  • Garment quality development via QC’s cycle activities is recently integrated to modernize technology.
  • Low-end T-shirt, pants and jacket are usually less than $15.

  • Midrange pants, dress and shirt are usually from $16 to $50.

  • The high end costume and suit are usually more than $50.

Materials & sources

Cambodia garment suppliers purchase handwoven silk fabrics from local weavers, as the country has a rich history of silk production. These are produced in most provinces along the Mekong River, such as Kampot, Takeo, Prey Veng and Kandal, particularly in Koh Dach.

However, fabric producers have difficulty sourcing silk thread due to rapid decline of sericulture in the country, as some farmers went to the capital to find other opportunities.

Makers currently import 300 metric tons of silk thread per year to supply the demand, while they source 3 to 4 metric tons from local farms, according to a report. It also said that the government planned to help the silk sector become more modernized and sustainable.

Suppliers import most fabrics worth $1.47 billion, accounting for 9.9 percent of the total imports in 2014, ranking third among the largest importers in the world, according to The Observatory of Economic Complexity.

Aside from fabric, yarn and buttons, which were less expensive, were also imported. These components are mainly from China, Thailand and Vietnam, where suppliers can enjoy tax exemption for imported raw materials.

Design & manufacturing

Enterprises release an average of five product designs per month. The average design team has at least five people.

Most companies produce more casual wear and sportswear because of less complexity. Casual wear, including T-shirts, comprises the garment manufacturing’s largest commodities produced, having a high number of export orders. Product designs fall into the low-end and midrange categories. Quotes are less than $50.

Meanwhile, large factories, which receive orders from international clothing brands, specialize in customized designs. For instance, a buyer representative visits the suppliers to give samples.

In terms of production steps, companies do cutting, sewing, ironing and finishing, and subcontract dyeing and weaving to the local skilled workers.

Embroidery factories normally operate by machines, which perform complex processes. Some of them are for sewing, overlocking, bar-tacking and buttons holding. A few steps that involved simple steps, such as cutting and packaging, are done manually.

Cambodia Sourcing: Garments Product features supplier materials

Quality control & customization

QC is normally carried out by 10 to 20 and 30 personnel for the small, medium and large enterprises respectively. Visual inspections involve the consistency of size, stitches and colors.

Garment quality development via QC’s cycle activities is recently integrated to modernize technology. Scanner machine, for instance, is able to measure the standardized sample, thread and cloth materials.

Meanwhile, Vietnam has developed its apparel production line rapidly for the last several years, according to GMAC. The group said the US, Cambodia’s largest market, provided the modern technology, as well as skills training of workers.

The GMAC and the Better Factories Cambodia, a program of the International Labor Organization, are supporting the government’s initiatives to promote quality products for the benefits of both suppliers and buyers.

Pricing

Manufacturers consider the cost of materials, transportation and electricity in pricing. They target low-end quotes to expand markets, as such products undergo simple manufacturing processes.

In 2010, the Royal Government of Cambodia exempted silk imports from tax duties and 10 percent value-added tax to sustain the country’s silk-weaving sector.

Inflation raised the silk price from $60 per kilogram in 2010 to $90 per kilogram in 2015.

Instead of increasing the prices of finished products due to the high cost of raw materials, particularly imported silk, suppliers maintain their prices to sustain global markets.

Quotes vary according to the materials used and complexity of designs.

Low-end T-shirt, pants and jacket are usually less than $15. This category is mainly made of fabric and spandex. Some examples are women’s jacket, women’s reversible jacket, blouse, men’s hoodie, women’s sweater and shirtwaist dress.

Midrange products pants, dress and shirt are usually from $16 to $50. This category is mainly made of wool and cashmere. Some examples are shift dress, shirt dress, women’s pullover, men’s undershirt and men’s suit jacket.

The high-end items are usually more than $50. This category is mainly made of silk and wool. Some examples are women’s suit and skirt, blouses, women’s formal wear and dress.

Price guide

Price guide: Formal wear
Less than $15
Uniform, dress; cotton fabric
$16 to $50
Embroidery dress, wool and cashmere suit, pants and jacket; Wool, Cashmere
More than $50
Traditional costume, unique import wool suit; Silk, wool

Click image to enlarge.

Cambodia garments

Price guide: Casual wear
Less than $15
Dress, skirts; Fabric, nylon, polyester
$16 to $50
Dress, pants, suit; Wool, cashmere; embroidery
More than $50
Traditional costume, suit; Silk, wool
Cambodia garments
Price guide: Sportswear
Less than $15
Men’s hoodie, men’s T-shirt, women’s tank top; Spandex, nylon, polyester
$16 to $50
Women’s sweater, men’s shorts; Spandex, nylon, polyester
More than $50
Women’s hooded pullover, men’s cropped top; Spandex, nylon, polyester
Cambodia garments

Cambodia Sourcing: Garments 2016 PDF download

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Cambodia Sourcing: Garments 2016

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Suppliers & products

Sections


  • Products
  • Cambodia garment suppliers

Industry overview

Sections


  • Highlights
  • Cambodia garments 2016 exports
  • Competitive advantages
  • Challenges
  • Industry composition
  • Cambodia garment suppliers

Charts


  • Garments exports
  • Supplier locations map

Export data

Sections


  • Cambodia garments sector exports
  • Cambodia garment suppliers

Charts


  • Garments export value and markets

Product features

Sections


  • Highlights
  • Materials & sources
  • Design & manufacturing
  • Quality control & customization
  • Pricing
  • Price guide
  • Cambodia garment suppliers

Charts


  • Supplier materials

Cambodia Sourcing: Garments 2016 Supplier list

Cambodia garment suppliers

Click company names below marked Active to view verified suppliers and products featured on GlobalSources.com.

Suppliers featured on
Supplier StatusCasual wearFormal wearSportswear
3 Sisters (Cambodia) Enterprise Active
Colors of Life Active
  
Daisy Boutique Active
  
Guoxing Garment and Knitting Factory Co. Ltd Active
Happy Silk Active   
Khmer Life Active
  
Lady Penh Designs Active
 
Lotus Silk & Boutique Active
 
SB Garment Group Ltd Active  
Sentosasilk Active
 
The Cambodian Center for the Protection of Children's Rights Active