PHNOM PENH: Cambodia’s garment industry needs a high-tech makeover to move beyond labour-intensive production and strengthen its competitiveness in the technology-driven global fashion market.
The transformation could prove crucial for an industry that employs around 700,000 workers, mostly women, and remains one of the country’s biggest sources of jobs and exports.
The industry now faces growing pressure to produce faster and more sustainably, as global brands demand higher quality, shorter production times, greater supply-chain transparency and environmentally friendly manufacturing standards.
"We must embrace new technologies to increase productivity, reduce costs, improve product quality and strengthen the competitiveness of our enterprises,” Industry, Science, Technology and Innovation Minister Hem Vanndy said on Thursday (Aug 13).
He was speaking at the Cambodia International Textile and Garment Industry Fair at the Diamond Island Convention and Exhibition Centre in Phnom Penh.
According to the Commerce Ministry, Cambodia exported US$15.5 billion worth of garments, footwear and travel goods last year, a nearly 16 per cent increase from the previous year.
Garments exports alone hit US$11.4 billion.
But these impressive export figures mask a deeper challenge, as Cambodia cannot rely indefinitely on low-cost labour to compete in the fast-changing global fashion industry, experts say.
This model is becoming increasingly difficult to sustain as wages rise and manufacturers across Asia invest in automation and advanced production technologies to gain a competitive edge.
Regional players like China, Vietnam, Bangladesh, India, Pakistan and Indonesia lead the trillion-dollar global textile and apparel industry.
Smart manufacturing is rapidly becoming the new mantra for the global garment industry.
Garment manufacturers are adopting Industry 4.0 technologies, including artificial intelligence (AI), Internet of Things (IoT), robotics, automated cutting, digital production monitoring and data-driven quality control on production lines.
These technologies can help factories reduce material waste, improve precision, monitor production in real time and respond more quickly to changing orders and fashion trends, according to industry experts.
"AI, production-line automation, robotics, digital technologies and smart manufacturing are increasingly determining the competitiveness of nations,” said Hem Vanndy.
For Cambodia, the transition is therefore not about replacing workers with machines but scaling up the value chain - from labour-intensive assembly towards higher-value manufacturing, product development and greater integration into global fashion supply chains.
"Now is the era of AI and robotics in garment production. The market is very competitive now; if we do not adopt modern technologies, we will be left out.
"Brands are demanding. They want high-quality products, sustainable and environmentally friendly products.
"Smart technologies are helping to reduce wastage, improve quality control and enhance production,” Phnom Penh-based S.E.C Accessories Limited’s Technical Services Relations Manager Edison C. Estrada told Bernama on the sidelines of the event.
The industrial expo is being held alongside the 10th Cambodia International Machinery Industry Fair and the Cambodia International Plastics, Rubber, Printing and Packaging Industry Fair 2026.
About 200 companies from China, India, Vietnam and Taiwan are showcasing machinery, equipment and technologies for the garment, plastics, printing and packaging industries.
The events are being held concurrently from Aug 13 to 16. - Bernama
