"Many Cambodian Garment Factories Face Short-Term Closure Amid US Tariff Uncertainty - Survey", 3 July 2025

A recent survey has revealed that nearly half of Cambodia’s 203 garment, footwear, and travel goods (GFT) factories are facing operational uncertainty beyond the next three months, as concerns over US tariff policies and declining buyer confidence continue to pressure the country’s largest export sector...

It said that 44 percent of factories can continue to operate at their current capacity for at least three months, depending on current orders and raw material availability.

It noted that 55 percent of responding factories have confirmed orders for three to six months, while 30 percent have secured orders for six months or more. However, 15 percent currently have no confirmed orders, or orders only for the next few weeks.

Ken Loo, Secretary General of the Textile, Apparel, Footwear and Travel Goods Association of Cambodia (TAFTAC), agreed with the findings of “current orders”.

“Because many buyers have not placed orders for the later part of the year,” he said. “They are waiting for more certainty regarding the US tariffs.”

Yang Sophorn, President of the Cambodian Alliance of Trade Unions (CATU), remained concerned over the tariff negotiations.

“If the tariff negotiations do not have a good outcome, it will impact workers directly and indirectly. For instance, some factories may close down or relocate, resulting in job losses for the workers,” she said.

However, the survey also found that 27 percent of the participants confirmed that current buyers have asked for lower prices for orders in 2025. This suggests that buyers are willing to transfer costs to suppliers in a situation where new tariffs may make importing goods more expensive.

Meanwhile, the survey revealed that factories faced operational instability from unpredictable customer demand, insufficient orders, and uncertainty surrounding US tariff policy, resulting in delayed or cancelled orders and production shifts...