PHNOM PENH: The Royal Government of Cambodia will promote the implementation of the Cambodia Garment, Footwear and Bag Development Strategy 2021-2025 to replace reliance on export-oriented trade preferences.

According to the “Strategic Framework and Program to Restore and Stimulate Cambodia's Economic Growth in Living with Covid-19 in the New Normal Path for 2021-2023” report, the Royal Government believes that as Cambodia’s economy continues to grow and the country sheds the label of “less developed” in the near future, the preferential trade system may gradually disappear. This will affect Cambodia's garment industry in addition to the effects brought on by the Covid-19 pandemic.

The Royal Government added that in the face of these problems, Cambodia needs to consider, address and be ready to seize opportunities to promote the development of the garment sector to be stronger and more resilient.

Regarding the framework of the strategy, the Royal Government has said that it will promote the implementation of the development strategy of the garment, footwear and bag industry in Cambodia 2021-2025, which has the vision to develop this sector into a sustainable, environmentally friendly, value-added industry.

The Government has added that the development strategy will be “Highly focused on high-cost and feature-packed products, highly competitive and fundamentally supportive of economic diversification."

According to the latest assessment of the United Nations, for the first time in history, it is possible that Cambodia will meet the conditions to graduate past the status of “less developed countries” in 2021.