Cambodia’s garment industry has demonstrated resilience amidst global market fluctuations, recording a 5.6 percent year-on-year increase in apparel exports to $4.449 billion during the first five months of 2026. Although shipment performance slowed in May, the sector remains a vital pillar of the country's economy, serving as its largest export earner.

According to data from the General Department of Customs and Excise (GDCE) under the Ministry of Economy and Finance, apparel exports represented 31.7 percent of Cambodia’s total merchandise exports, which reached $14.043 billion from January to May 2026. Exports of knitted apparel (HS Chapter 61) grew by 4.5 percent to $2.817 billion, while non-knitted apparel (HS Chapter 62) saw a stronger growth of 7.5 percent, reaching $1.632 billion.

However, this growth momentum faced headwinds in May 2026, with total apparel exports declining by 7.28 percent year-on-year to $993.941 million. Within that month, knitted garment exports contracted sharply by 11.9 percent, while non-knitted apparel exports managed a modest growth of 3.4 percent. This performance divergence suggests that demand for woven garments remained more resilient, while knitted apparel faced significant pressure in key markets.

Concurrent with these export trends, Cambodia’s textile supply chain is experiencing a shift in sourcing patterns. Imports of knitted or crocheted fabrics (HS Chapter 60) fell by 2.5 percent to $1.381 billion, and man-made fiber imports edged down by 0.8 percent to $600.466 million. Conversely, imports of cotton and cotton yarn surged by 27.1 percent to $415.842 million, indicating a growing demand for cotton-based manufacturing and a potential shift toward natural fiber apparel.

The cumulative performance for the first five months of 2026 underscores Cambodia’s role in the recovery of global apparel demand. The country’s ability to maintain positive growth—despite monthly volatility—is supported by the ongoing diversification of global sourcing, as brands increasingly move production away from China toward Southeast Asian bases that offer lower costs and duty preferences.