Core Viewpoint - The report from the Cambodian Ministry of Commerce indicates a steady growth in the export of garments, footwear, and travel goods, reaching $14.84 billion in the first 11 months of the year, a 16.9% increase compared to $12.69 billion in the same period last year [1] Export Performance - Garment exports amounted to $10.46 billion, reflecting a year-on-year growth of 17% [1] - Textile exports reached $620 million, showing a significant increase of 36.7% [1] - Footwear exports totaled $1.91 billion, marking a growth of 26.4% [1] - Travel goods exports were valued at $1.85 billion, with a modest increase of 3.7% [1] Economic Impact - The garment, footwear, and travel goods sectors are crucial drivers of economic growth in Cambodia and represent the largest source of foreign exchange earnings [1] - The primary export markets for these products include the United States, Europe, the United Kingdom, Canada, South Korea, and Japan [1] Labor Market Update - The minimum wage for workers in the garment, footwear, and travel goods sectors will increase from $208 to $210 next year [1] - Currently, the minimum wage system applies only to these three manufacturing sectors, with other industries not yet included [1]

Economic Growth Outlook - Cambodia's economy is projected to grow by 5.2% in 2025, according to the Cambodian People's Party Chairman Hun Sen [1] - The World Bank has revised Cambodia's economic growth forecast for 2025 down to 4% from an earlier estimate of 5.5% [1] - The World Bank report highlights that while Cambodia's economy shows resilience, growth is uneven, particularly in labor-intensive manufacturing sectors like garments and footwear [1][3] Export Market Diversification - Cambodia is working on diversifying its export markets and products, despite the U.S. being its largest export market [1][3] - The Cambodian government is focusing on maintaining flexibility and resilience in the garment and footwear industries amid external pressures [3] Impact of U.S. Tariff Policies - The uncertainty surrounding U.S. tariff policies is significantly impacting Southeast Asia's economic growth, including Cambodia [2][3] - The Cambodian garment and footwear sectors are particularly vulnerable to potential U.S. tariffs, with many factories awaiting decisions from U.S. authorities [3] Agricultural Sector Development - Cambodia aims to enhance its agricultural value chain by focusing on the processing of products like cashews, bananas, and mangoes [4][5] - The country is pushing for local processing to add value to agricultural products, which is crucial for its economic foundation [4] RCEP and China-Cambodia Trade Relations - China remains Cambodia's largest trading partner, with ongoing benefits from the RCEP and China-Cambodia Free Trade Agreement [6] - Cambodia's trade deficit with China is expected to persist, as the country imports many intermediate goods for processing and re-export [6] Infrastructure and Belt and Road Initiative - The Belt and Road Initiative is crucial for Cambodia's infrastructure development, which is necessary for global competitiveness [8][9] - Future cooperation under the Belt and Road Initiative will focus on industrial development and enhancing quality and standards in various sectors [9] Financial Cooperation and Currency Settlement - The cross-border RMB business between China and Cambodia is projected to reach approximately 20 billion yuan in 2024, doubling year-on-year [10] - The establishment of a currency settlement system will facilitate easier transactions between Cambodian and Chinese businesses [10] Youth and Technological Collaboration - Cambodia's young population is seen as a potential asset for technological collaboration with regions like the Guangdong-Hong Kong-Macao Greater Bay Area [11] - There is a strong interest in fostering cooperation between young innovators from both regions to explore market opportunities [11]