TCF POST Analysis
Despite maintaining positive growth, Cambodia’s core textiles sector—comprising knitted and non-knitted apparel—is experiencing a cooling trend in terms of its overall contribution to the national export portfolio.
According to government data, while total national exports surged by 19.5% in the first half (H1) of 2026, the traditional garment sector growth significantly trailed this pace.
Sector Performance: H1 2026 Overview
The textile industry remains the backbone of Cambodia’s export economy, but its relative dominance is shifting as the country continues to diversify its industrial base.
| Commodity | H1 2025 Value (USD ‘000) | H1 2026 Value (USD ‘000) | Growth Rate |
| Knitted Apparel (Ch. 61) | 3,442,810 | 3,563,636 | +3.5% |
| Non-Knitted Apparel (Ch. 62) | 1,841,236 | 1,985,884 | +7.9% |
| Other Textile Articles (Ch. 63) | 140,636 | 215,026 | +52.9% |
Key Findings
1. Underperformance Relative to National Growth
Total national exports reached $17.08 billion in H1 2026, marking a robust 19.5% increase compared to the same period in 2025. In stark contrast, the core garment sectors (Chapters 61 and 62) grew at a much more modest pace:
- Knitted apparel (Ch. 61), the nation’s largest export category, saw a growth of only 3.5%.
- Non-knitted apparel (Ch. 62) grew by 7.9%.
- These figures indicate that the textiles sector is currently growing significantly slower than the country’s overall export engine.
2. Declining Share of Total Exports
As a result of this slower growth, the share of traditional apparel in Cambodia’s total export basket is contracting:
- Knitted apparel’s share of total exports dropped from 24.1% in H1 2025 to 20.9% in H1 2026.
- Non-knitted apparel’s share decreased from 12.9% to 11.6% in the same period.
- Combined, these two categories now represent 32.5% of total exports, down from 37.0% in the first half of 2025.
3. Diversification Signals
While core garment growth is stagnant, “Other made-up textile articles” (Chapter 63) demonstrated a high growth rate of 52.9%, suggesting a shift in product focus or market demand within the textile value chain.
Furthermore, the overall national growth of 19.5% is being fueled by high-performing sectors such as rubber (+53.8%), electrical machinery (+28.8%), and aluminum (+373.0%), which are successfully capturing a larger share of the total export value compared to the traditional apparel sectors.
Cambodia’s textiles sector remains a vital pillar of the economy, but the H1 2026 data confirm a structural transition. As other industrial sectors expand rapidly, the reliance on apparel exports is decreasing, highlighting a successful, albeit challenging, diversification of Cambodia’s trade profile.
