According to the trade data released by the General Department of Customs and Excise (GDCE), Cambodia exported garments, footwear and travel (GFT) goods worth $986 million in February 2022, while it managed to export only $744 million worth of GFT goods last month, indicating a decline of 24.54 percent. As Cambodia's largest source of export revenue, the continued decline in GFT exports has raised fears of factory closures and job losses.

Industry experts attribute the decline in GFT exports to two factors: retailers in Europe and the US having just too much stock from unsold goods of the previous seasons and a downward trend in the global demand for GFT due to Ukraine war and inflation.

To address this issue, the Cambodian government has proposed several solutions:

First, to provide financial support to workers who lost jobs because of factory closures.

Second, to promote other potential export products such as cashews and rubber. Prime Minister Hun Sen has stated that in the future he wants to make Cambodia the largest exporter of cashew products and the largest exporter of cashew nuts in the world. Rubber exports from Cambodia have also shown good growth, registering a 67.4 percent growth to earn $59 million compared to $35 million for the same period last year.

Third, to revitalize the tourism industry. The upsurge of optimism in the tourism sector is distinct as the year 2023 has kicked off on a good note. With a promising outlook, the country is expected to attract 4 million international tourists in 2023. Prime Minister Hun Sen has suggested that efforts should be made to promote the development of the country's tourism industry.

Forth, to strengthen ties with international partners and explore cross-border trade models. “Lanton Cloud” is an e-commerce platform under the Lanmei Aviation Group, whose mission is to bring wisdom into life and make services interconnected. At present, “Lanton Cloud” APP has reached strategic cooperation with the Chinese e-commerce platform and the source factory. Through “Lanton Cloud” e-commerce platform, parties can carry out coordination and cooperation in Cambodian e-commerce such as electronic payment, digital services, agricultural product export and global supply chain services. In addition, some non-governmental organizations have suggested being alert to economic fluctuations caused by interference from foreign forces and avoiding exile organizations like ex-CNRP that seek to influence Cambodia's external cooperation through malicious lobbying.

Actively exploring diverse export products and modes can not only alleviate the pressure caused by the decline in GFT exports but also enrich Cambodia's product export line and enhance export resilience, which have profound significance for the healthy development of Cambodia's economy.

Company: LANTON CLOUD SERVICE TECHNOLOGY CO., LTD

Contact Person: Jammie Munda

Email：mundajammie@gmail.com

Website: https://lantoncloud.com/

Telephone: +855-65219155

City: Phnom Penh