If Cambodia wants to move away from the garment industry, which is a labor-intensive industry, to the electronics and mechanical components industry, which is a medium-sized industry, it needs a lot of time and a lot of determination.
According to the 2024 Trade Summary Report and the 2025 Outlook, this vision has indeed begun and progress has been made, but it seems to be slow and still lagging behind.
So far, statistics have shown that among all Cambodian exports in 2024, which were worth more than $24 billion, exports of industrial products related to garment manufacturing still stand at the top of the export list, while exports of electrical and electronic components are still far lower, and some products have even experienced a significant decline.
The export figures for 2024 clearly show this gap. With the export of clothing, travel goods and footwear, which we call light industry or labor-intensive industry, still leading with an export volume worth more than $12 billion, while exports of electronics and other accessories are only worth nearly $3 billion.
The value of garment exports is worth more than $8.94 billion, travel goods more than $1.78 billion, and footwear more than $1.50 billion. These light industrial products have increased by more than 20 percent compared to 2023.
In particular, medium-sized industrial products are not only less in quantity, but also have decreased.
Statistics show that the export of electronic components alone is only more than $938 million, a decrease of nearly 4 percent. Solar panels are worth only more than $830 million, a decrease of nearly 58 percent. In addition, bicycles are worth only nearly 375 million, down nearly 20 percent.
Among the medium-sized industrial products that Cambodia can export, only tires can be exported, which can export more than 772 million dollars, up 135 percent.
So far, Cambodia has been setting goals to promote and modify as well as modernize the industrial structure in the country from light industry, which is a labor-intensive industry, to medium-sized industry based on skills. and better jobs. To promote the realization of this vision, the government has launched a policy to train up to 1.5 million young people so that they can create added value and support the industrial development process in the country.
Regarding this goal, analysts said that this is the right decision to prepare the basic foundation to prepare for the development of the industry from labor-intensive to highly skilled industries, especially electronics and mechanical components, but the quality and availability of training are still limited. Compared to its neighbors, especially Vietnam and Thailand.
Transforming and modernizing the industry from one level to another requires a lot of investment in research and development, as well as incentives to attract foreign direct investment, which requires a lot of attention.
These are obstacles, but Cambodia can achieve them if everyone puts in the effort and integrity to create a niche market or provide competitive advantages to gain a foothold. Today, we have policies and laws that provide a clear roadmap for diversification, including incentives for high-tech industries and efforts to improve the business environment, but most importantly, we need the utmost commitment to achieve it.
Overall, Cambodia’s journey to move away from the garment industry to the electronics and automotive components industries, which are medium-sized industries, is a race that requires sustained effort, investment, and the utmost commitment from all stakeholders. While progress has been slow, the foundations for change should be further strengthened.
