Cambodia’s Major Industries

The Cambodian economy is dominated by a handful of key sectors. Agriculture (including fisheries) still employs roughly a third of workers and contributes about one‐fifth of GDP, whereas industry (led by garment manufacturing and construction) and services (including tourism) make up the remainder. The country has also begun developing a digital/technology economy, though this remains a small base. The table below summarizes each sector’s share of GDP, employment and exports:

Industry	GDP Share	Employment	Exports / Receipts
Agriculture	≈22 % of GDPopendevelopmentcambodia.net	≈35 % of workforcetrade.gov	$4.3 billion (agri‐products, 2023)opendevelopmentcambodia.net
Tourism	≈12 % of GDPtrade.gov	≈600,000 direct jobstrade.gov	~$1.4 billion (tourism receipts, 2022)trade.gov
Textiles/Garments	≈10 % of GDPaseanbriefing.com (manufacturing ~26 %)	~750,000 workersaseanbriefing.com	~$11 billion (garments & related, 2023)asiagarmenthub.net
Construction	≈5 % of GDPaseanbriefing.com	(data not specified)	(mainly domestic; FDI ≈$4.3 b in 2023)confluences.asia
Technology/ICT (emerging)	Low – growing	Nascent, rising	Minor (digital services developing)

• Agriculture: A cornerstone for rural livelihoods, agriculture accounted for about 22 % of GDP in 2023opendevelopmentcambodia.net and employed ~35 % of Cambodians (2021)trade.gov. Major crops include rice (the principal staple and export crop), rubber, cassava, maize and vegetables, along with fisheries and forestry products. Agricultural exports totalled roughly $4.3 b in 2023 (8.4 million tonnes of produce)opendevelopmentcambodia.net. Key export markets include neighboring ASEAN countries, China, Vietnam and others. The government has actively promoted modernizing agriculture (e.g. irrigation, inputs and processing) and provided subsidized credit (≈$100 M in 2020)trade.gov. Land‐lease concessions and foreign investment (notably from China, Vietnam and Malaysia) have expanded plantations, though smallholders remain dominant.

• Tourism: Prior to the pandemic, tourism was one of Cambodia’s fastest-growing sectors. In 2019 it contributed about 12 % of GDPtrade.gov (roughly $5 billion in receipts) and directly employed some 600,000 peopletrade.gov. Cambodia welcomed 6.6 million international visitors in 2019trade.gov (mostly from China, Vietnam, ASEAN, the US/EU and Asia). COVID-19 caused a sharp drop in 2020–21, but recovery began in 2022 with ~2.3 million visitors (Jan–Dec 2022) and ~$1.4 b in tourism receipts for January–July 2022trade.gov. New infrastructure (expanded airports, resorts and highways) and marketing campaigns have boosted tourism. Angkor Wat (cultural heritage) remains the top attraction, while coastal and eco-tourism projects (Sihanoukville cruise port, new resorts, national parks) are growing. The sector draws considerable foreign investment in hotels, resorts and theme parks, particularly from Chinese, Thai and ASEAN developers.

• Textiles & Garments: This is Cambodia’s leading export‐oriented industry. Together with footwear and travel goods, garments contributed around 10 % of GDP, made up roughly 70 % of merchandise exports, and employed ~750,000 workers (75% of them women)aseanbriefing.com. In 2023 the sector exported about $11 billion of apparel and related productsasiagarmenthub.net. Key markets are the United States (~38.6% of exports) and the European Union (~27%)asiagarmenthub.net. Other important partners include Japan, Canada, the UK, China and ASEAN marketsasiagarmenthub.net. The garment industry has attracted substantial foreign investment (especially from China, Hong Kong and South Korea) and remains a major source of FDI and economic growth.

• Construction: Spurred by urbanization and infrastructure projects, construction has been a strong engine of GDP growth. In 2023 the sector’s value added was about KHR 6.11 trillion (≈$1.5 billion)aseanbriefing.com – roughly 5% of GDP – and total construction spending hit ~$9.3 b (2023)aseanbriefing.com. Major drivers include commercial and residential real estate booms in Phnom Penh and Siem Reap (luxury condos, malls), plus large public works (new Phnom Penh airport, bridges, power plants, ports). The industry drew about $4.3 billion in investment approvals in 2023confluences.asia, underscoring continued demand. Foreign developers (Chinese, Vietnamese, Korean, Thai, UAE) are active in big projects and SEZs. Skilled labor is a shortage, and rising material costs and regulatory hurdles are key challenges. Overall, construction contributes to jobs (skilled and unskilled) and is expected to remain robust given planned infrastructure and urbanization.

• Emerging Technology / ICT: Cambodia’s digital economy is still small but growing. Internet and smartphone penetration are high (over 60% and 130% of population, respectivelystandard-insights.com), and e‑commerce, fintech and IT services are expanding. By one estimate Cambodia’s digital economy revenues may reach ~$1.45 b by 2023standard-insights.com (with e‑commerce ~$1.29 b), though reliable official figures are scarce. The government has launched a 2021–2035 Digital Economy and Society framework to build digital infrastructure, e‑government and tech startupsstandard-insights.com. A budding startup scene (fintech, edtech, agritech, logistics) is emerging, supported by incubators and foreign tech firms. ICT exports remain negligible, but there is strong growth in domestic use (mobile payments, online shopping) and some FDI in telecoms and digital services. The sector’s employment share is still very low, but accelerating digitalization suggests significant future potential.

Textile and Garment Sector (In-Depth Analysis)

1. Role in GDP and Employment: Garment and textile manufacturing is a cornerstone of Cambodia’s economy. It contributes roughly 10% of GDPaseanbriefing.com (the bulk of the manufacturing sector) and directly employs on the order of 0.7–0.9 million workersaseanbriefing.com, predominantly women. Including related SMEs (subcontracting, logistics), the industry supports about 2–3 million people overall. By value, apparel accounts for over 70% of all Cambodian merchandise exportsaseanbriefing.com. The sector’s growth has been driven by Cambodia’s low-cost labor, favorable trade access, and investment incentives. (For context, the manufacturing sector as a whole was ~26% of GDP in 2023, with textiles the leading component.)

2. Export Performance and Trade Partners: Garment exports rebounded after the pandemic. In 2023 the sector shipped roughly $11 billion of products abroadasiagarmenthub.net, though this was about 13% below 2022 as global demand softened. The United States is by far the largest buyer (≈38.6% of apparel exports in 2023asiagarmenthub.net), followed by the European Union (≈27%). Other markets include Japan ($918 M in 2023), Canada ($773 M), the UK ($716 M), China ($274 M) and ASEAN neighborsasiagarmenthub.net. The industry heavily relies on duty-free access under trade deals (e.g. the EU’s Everything But Arms scheme and the US general trade preferences), which makes market conditions and tariffs in these economies critically important. Cambodia’s suppliers produce mainly basic apparel (shirts, pants, knitwear) for major global brands (e.g. Nike, H&M, Zara, Gap), while higher-value, specialized textiles remain limited.

3. Foreign Investment and Key Players: The garment sector has attracted vast foreign capital, especially from Chinese, Hong Kong, Korean and Taiwanese investors. Major manufacturers include Hong Kong’s TAL Apparel (one of the world’s largest garment producers), China’s Shenghua Garment (a Nike supplier), South Korea’s Youngone and others. In recent years, China has become Cambodia’s top source of industrial FDI, much of it in clothing and footwear. Key international buyers and brand owners (US/EU) also invest indirectly by sponsoring local production. More recently, some global fast-fashion firms (e.g. SHEIN) have begun shifting orders to Cambodia from higher-cost hubs, which could stimulate further investment.

4. Current Challenges: Cambodia’s garment sector faces several headwinds. Labor costs have been rising: the legal minimum wage for garment workers increased to about $208/month in 2025aseanbriefing.com, narrowing the gap with competitors. Firms report tighter margins as wages and benefits rise. Global competition is intensifying from Bangladesh, Vietnam, India and even Africa, where labor can be cheaper or productivity higher. Compliance with international labor and safety standards (audits, overtime limits, etc.) adds costs. The industry is also heavily dependent on imports for raw materials (mainly fabrics and yarn from China)aseanbriefing.com, exposing firms to global supply chain disruptions. Meanwhile, external demand can be volatile – for example, slowdowns or retail inventory gluts in the US/EU quickly translate into order cancellations in Cambodia. Environmental and climate risks (e.g. floods affecting factories or cotton supply) are emerging concerns, as is any loss of trade preferences (e.g. tightening of EU import rules).

5. Future Outlook: Long term, garments remain one of Cambodia’s best opportunities for sustained growth, but evolution is needed. The sector is moving toward higher value-added: factories are adopting better automation, productivity improvements and some vertical integration. A strategic push toward ethical and “green” manufacturing is underway to meet buyer demands (some factories are LEED-certified or use solar power). Diversifying into related sectors (footwear, travel goods, technical textiles) could also mitigate risk. Cambodia benefits from growing US–China trade tensions, as buyers diversify sourcing outside China. Nonetheless, future competitiveness will hinge on improving skills, technology adoption and infrastructure (power, roads). The government’s newly unveiled Garment, Footwear & Textile Strategy (2022–27) aims to upgrade skills and move up the value chain. If these efforts succeed, garment exports could grow again toward their pre-COVID highs, supporting Cambodia’s industrialization and jobs.

Sources: Official statistics and industry analyses (World Bank, government ministries, trade agencies) were used wherever available. Key figures and trends are cited from the Cambodian Ministry reports, World Bank/IMF publications and reputable trade news (see references)opendevelopmentcambodia.nettrade.govopendevelopmentcambodia.nettrade.govaseanbriefing.comasiagarmenthub.netconfluences.asia. (Agriculture data from the Ministry of Agriculture; tourism from the Tourism Ministry; trade from customs and sector briefs.)