15% of Cambodian garment units have orders for next few weeks: Survey

Fifty-five per cent of factories in the country have orders confirmed till six months and 30 per cent have orders for more than six months.

The survey studied the impact of the economic uncertainties triggered by the announcement of reciprocal tariffs by US President Donald Trump on Cambodia on April 2 on the country’s textiles and garments industry.

Half of the country’s garment, footwear and travel goods, are facing the tariff impact, with waning buyer confidence affecting the garment industry.

Factory production trends in the first quarter (Q1) this year showed mixed performance year on year (YoY). While 42 per cent reported no significant change in output, a larger share of factories experienced changes: 26 per cent reported an increase in production, and 22 per cent reported a decrease, highlighting varied operational conditions across the sector, but an overall increase relative to a year prior.

Regarding operational sustainability, 44 per cent of factories can continue operating at current capacity for at least three months, based on current orders and raw material availability.

Reflecting the volatility and uncertainty of the current environment, nearly half of respondent factories indicate they will be unable to sustain their current operations beyond the next 90 days: 40 per cent say they can sustain for one to three months, and 8 per cent for less than one month.

This suggests firms are vulnerable to a sudden reduction in orders that could result from the imposition of significant tariffs within a major export market.

Over 20 per cent of respondents report their factory has seen production orders discontinued by at least one buyer in Q1 2025. Twelve per cent of factories reported losing one buyer since the beginning of 2025, while 10 per cent experienced discontinuation from multiple buyers.

Regarding pricing pressures, 27 per cent of factories reported that buyers requested discounts for new orders in 2025, which provides some indication of the willingness of buyers to shift costs on to suppliers in an environment where new tariffs could increase costs to buyers importing goods.

To address customer and order uncertainty, most factories are seeking to expand their customer base. Twenty-six per cent of factories have already secured new buyers or opportunities, the report added.

ALCHEMPro News Desk (DS)