Known to be one of the quickest-economies across the globe, Cambodia has succeeded in reaching a 7.7 percent growth rate stably in the last two decades. Cambodia apparel industry becomes one of the main industries that drive this country into the high success of the current growth rate.
Although the country’s economy is considered to be the stable one worldwide, many sectors in Cambodia are also inevitably affected by the COVID-19 spread since back in March 2020. Those primary sectors which experienced a steep fall last year due to pandemic now show recovery to return to their normal state.
Cambodia Apparel Industry’s Recovery
Showing development from the end of 2020 which experienced a -3.1 percent decline, main key sectors of Cambodia’s economy marked by 4 percent in the first quarter this year. This increased growth cannot be separated from the government’s support.
Cambodia’s government provides generous support to the sectors that contribute significantly to the country’s economy. It is done by giving citizens cash transfers during this global crisis. Not to mention, the increasing global demand as other countries reopened the economy that trigger this country.
Government Responsive Movements
Cambodia has over 2.0 million citizens and the government give them wired cash transfers at the beginning of this year to support their livelihood as the pandemic elongates. The number of poor households has raised from the original 2.3 million back in June 2020.
Government used a rigorous tracking system to keep up-to-date with the number and convince the flow of fiscal stimulus during a crisis. Government in this country work together with the World Bank as well as the National Institute of Statistics to conduct household phone survey.
This survey was administered to look on how the significant impacts of COVID-19 on different kinds of household levels in the country. Currently, the survey has found out that 72 percent of the citizens are re-employed even though the number is still lower than the pre-pandemic.
Poverty is another challenge Cambodia has to face besides COVID-19 outbreak. Prior to a pandemic, about 4.5 million Cambodians had successfully moved out from the poverty level through a small margin. However, the pandemic has dragged the country back to gain in upper-middle level in 2030.
Industries’ Prospects in 2021
Cambodia predicts its main sectors will regain at different paces, industrial production expects to increase considerably by 7.1 percent this year, which mainly depends on garments, footwear as well as electronics since the demand for global tech supplies also rises.
Cambodia market analysis suggests industry-main drivers identify sustainable growth strategies across various industries in this country. It is to provide a clear understanding of the opportunities as well as potentials that go beyond the surface level.
By conducting the required market analysis, industries can enter and thrive in the fast-changing Cambodian market. This can be done by leveraging a better and detailed understanding related to the market’s characteristics along with the challenges.
It is also important to consider main industry rivers to get unique perspectives that are important for business needs.
Cambodia apparel industry begins to tackle the pandemic by regaining back its growth rate. Both government support and market development contribute significantly to this progress.