weighted score 3.6 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Cambodia
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Cambodia as a sourcing destination.
Labour cost competitiveness
9
Among the cheapest labour markets globally for garment manufacturing. Minimum wage approximately USD 200/month — second only to Ethiopia among major garment exporters.
Supply base depth
3
Shallow supply base concentrated in garments, footwear, and travel goods. Upstream textile inputs imported from China and Vietnam. No integrated supply chain stacks.
Logistics & infrastructure
3
Sihanoukville port has limited capacity and berth depth. Road and rail networks underdeveloped compared to Vietnam and Thailand. Inland logistics add cost and time.
Workforce skills
3
Large unskilled labour pool available for garment assembly. Technical and engineering skills limited. English proficiency low outside Phnom Penh.
Scalability
4
Garment sector can absorb moderate volume increases. Diversification into electronics or complex manufacturing is constrained by workforce skills and infrastructure.
Ease of doing business
3
Regulatory environment is opaque. Corruption is endemic — CPI 24/100. Hun family governance creates political risk for long-term investment.
Trade access & tariffs
2
EU EBA partially suspended (2020) — approximately 20% of EU-bound exports lost tariff preferences. US GSP suspended. RCEP membership provides some regional preferential access.
Sustainability baseline
2
Environmental enforcement weak. Factory-level ESG compliance varies widely. Dark factory risk documented in garment sector. Energy grid heavily reliant on imported electricity.
Innovation & IP
4
Minimal domestic R&D capacity. Patent filings negligible. Innovation ecosystem nascent. Not a relevant consideration for current sourcing categories.
Quality standards
3
Garment factories serving major brands operate to buyer-imposed quality standards. Outside top-tier suppliers, quality management systems are inconsistent. Third-party audit coverage limited.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage level
- Cambodia's garment sector minimum wage is approximately USD 200/month (2024), making it one of the cheapest labour markets in Asia — second only to Ethiopia among major garment exporters. Total cost of ownership is low for labour-intensive assembly.
- Garment export rank
- Cambodia is the world's #7 garment exporter. The sector accounts for roughly 75% of Cambodia's total merchandise exports. Buyers sourcing basic cut-make-trim garments find established factory capacity in Phnom Penh and surrounding provinces.
- Supply base depth
- The supply base is shallow and concentrated in garments, footwear, and travel goods. Upstream textile inputs (fabrics, yarns) are overwhelmingly imported from China and Vietnam. Cambodia lacks integrated supply chain stacks — buyers must manage multi-country sourcing for finished goods.
Infrastructure & Trade Access
Infrastructure & Trade Access
- Port infrastructure
- Sihanoukville Autonomous Port is Cambodia's primary deep-water port. Capacity and berth depth are limited compared to regional competitors (Ho Chi Minh City, Bangkok). Phnom Penh has a river port on the Mekong, used primarily for inland cargo.
- EU EBA status
- Cambodia benefited from the EU Everything But Arms (EBA) scheme until the European Commission partially suspended preferences in August 2020, withdrawing tariff preferences on approximately 20% of Cambodia's EU-bound exports (garments, footwear, travel goods) over human rights concerns.
- US GSP
- Cambodia's eligibility under the US Generalized System of Preferences was suspended in 2020 over worker rights violations. Standard MFN tariffs apply for US-bound shipments.