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Cambodia's textile industry: Southeast Asian powerhouse in the making?

The Cambodian textile industry exemplifies early industrialisation, relying on relatively simple machinery and abundant, inexpensive labour to drive its growth. Many developing nations have embarked on their industrialisation journeys through the expansion of local textile industries and their exports to partner countries. Cambodia&#**;s textile story began in the ****s, fuelled by an influx of foreign investment. Investors are drawn to Cambodia for its low labour costs, preferential market access—including duty and quota-free entry to the US and EU markets—its proximity to ASEAN markets, and its closeness to key sources of foreign direct investment in garments, such as Hong Kong, Indonesia, Malaysia, Singapore, and Taiwan.

Cambodia&#**;s FDI focus: Dominance of the textile and garment Sector