Cambodia braces for LDC trade shock

PHNOM PENH – Cambodia is preparing for a significant shift in its trade position as its scheduled 2029 graduation from the UN’s Least Developed Country (LDC) category approaches — a transition that threatens the preferential market access on which its garment industry has long depended.

Because Cambodia currently relies heavily on imported raw materials – particularly Chinese yarn – any failure to meet new rules of origin requirements under future trade arrangements could erode factory competitiveness rapidly.