Asia St: Cambodia Climbs Value Chain with New Sector Strategy

Asia Street

Know the Street. Know the people. Know Asia.

Welcome to BGA’s Asia Street blog, where you’ll find commentary and analysis from our people on the ground.

Cambodia Climbs Value Chain with New Sector Strategy

March 31, 2022

Cambodian Prime Minister Hun Sen (Photo Credit: Wikimedia Commons).

The BGA Cambodia team, led by Managing Director Bora Chhay, wrote an update on the country’s first garment, footwear and travel goods (GFT) development strategy. The update examined the broader economic and political context for the strategy and the implications for clients.

Context

  • The Cambodian government on March 21 launched the country’s first GFT development strategy to upgrade a key sector of its economy from 2022-2027.
  • The strategy aims to boost Cambodia’s competitiveness by promoting high-end and value-added goods and build resilience through economic diversification and by prioritizing environmental sustainability.

Significance

  • Cambodia’s plan to become a higher value-added hub will require a paradigm shift throughout the supply chain as the government looks for more investment.
  • If the strategy is implemented as is, it could impact companies’ business models and strategic supplies as Cambodia takes steps to climb the manufacturing value chain.

Implications

  • The strategy could lead to opportunities for businesses as the government looks for more investment to facilitate cross-border infrastructure upgrades, technology uptake and skills development.
  • Businesses should be aware that the government has framed this as a living document. In that sense, the strategy may be revised and adapted to Cambodia’s evolving development needs.

BGA will continue to keep you updated on developments in Cambodia. If you have any comments or questions, please contact BGA Cambodia Managing Director Bora Chhay at bchhay@bowergroupasia.com.