Logo of Phnom Penh Post newspaper Phnom Penh Post - Exports of footwear and travel goods buoyed by tariff privileges

Exports of footwear and travel goods buoyed by tariff privileges

Content image - Phnom Penh Post
Cambodia’s footwear and travel goods exports reached some 4.723 billion units – worth $385 million – in the first nine months of this year. POST PIX

Exports of footwear and travel goods buoyed by tariff privileges

Cambodia's footwear and travel goods exports increased in the first nine months of this year, thanks to tariff privileges they received from the US under its Generalised System of Preferences (GSP).

An amendment to the GSP that went into effect in July 2016 removed US customs tariffs on Cambodian-made travel products such as luggage, backpacks, handbags and wallets.

The items, which previously faced tariffs of between 4.5 and 20 per cent, now enter the US duty-free under the expanded programme.

Under the programme, approximately 5,000 products from 122 beneficiary developing countries and territories – including 43 least-developed countries – are eligible for duty-free export to the US.

The US’ and the EU’s preferential trade schemes have been very beneficial to the Kingdom’s footwear and travel goods exports, Ministry of Commerce secretary of state Sam Sereirath said in Phnom Penh on Friday.

He was speaking at The First Ever International Technology Tradeshow on Machinery, Components, Chemicals, Accessories & Leather for Footwear and Travel Goods Sector.

Cambodia’s footwear and travel goods export reached some 4.723 billion units – worth $385 million – in the first nine months of this year, up 88 per cent compared to the same period last year, Sereirath said.

“By November, we had attracted some 98 factories in the footwear and travel goods industry. This is a very good contribution to the country’s economic growth,” he said.

Cambodia Footwear Association chairman Ly Khunthay said the footwear and travel goods exhibition, which had representatives from 50 factories in attendance, will serve as a new platform for the industry and attract more investment – especially foreign suppliers.

Garment Manufacturers Association in Cambodia chairman Van Sou Ieng told reporters: “There has been a large increase in investment flow into the travel goods sector now since we obtained market access under the GSP to the US – this is a good sign.”

In 2016, Cambodian goods exported under the GSP scheme amounted to $50 million. Last year, the figure went up dramatically to $400 million, data from the Ministry of Economy and Finance said.

The Kingdom remained among the top 10 footwear exporters, with its exports valued at more than $1 billion last year, a 19 per cent increase from 2017, data from the International Labour Organisation released in August said.

Cambodia’s main export markets for shoes are the EU (46 per cent), the US (17 per cent), Japan (12 per cent) and Canada (five per cent), it said. The UK, Germany and France are the main importers of the Kingdom’s footwear in the EU.

MOST VIEWED

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there

  • Cambodia lauded for fight against Covid-19

    Cambodia has drawn global accolades for its handling of the Covid-19 pandemic, with a new report finding that the Kingdom has controlled the pandemic better than any other country in Asia. Dr Takeshi Kasai, director of the World Health Organisation’s (WHO) Western Pacific region,