Context
Cambodia's booming trade industry, particularly the export-driven garment, footwear and travel goods (GFT) industries, has been crucial to the country's impressive economic and social progress. However, concerns arise as the country prepares to graduate from least developed country (LDC) status, expected by 2029, which involves maintaining preferential trade regimes and diversifying export markets.
To meet changing demands, Cambodian exporters are shifting towards more climate-friendly and inclusive practices, aligning with government efforts to boost competitiveness through digital transformation and customs reforms. Digitalisation and risk management are crucial for improving customs efficiency and expanding market access for businesses.
While the GFT industry has had significant impacts, challenges like labour issues persist. Addressing these will be important as the trade industry evolves.
Additionally, Cambodia's women entrepreneurs represent untapped potential. Overcoming barriers like limited access to finance and skills development can unlock this dynamic segment's full business potential.
Objective
Cambodia’s export industry is becoming more inclusive and climate sensitive, thus better aligning with international standards, including those of the European Union (EU) and regional markets.
Approach
Building on the ARISE Plus Cambodia project, which aims to improve Cambodia’s trade practices and economic integration, the project focuses on four main intervention areas:
- Trade policy: improving climate-sensitive and inclusive trade development in the public and private domains.
- Digital economy: improving knowhow of the legal and regulatory framework for the digital economy, including consumer and data protection rights.
- Trade facilitation: improving capabilities in risk management and trade facilitation among government agencies.
- SME trade competitiveness: increasing access to ASEAN, EU, and other markets for SMEs, including those owned by women.
The project aligns with Cambodia's development strategies, trade policies, and international commitments to maximise impact and contribute to the sustainable development goals.
Last update: August 2024