Munich Personal RePEc Archive

Cambodian place in the International trade of Textile and Clothing: Threat and Opportunity

Nith, Kosal (2019): Cambodian place in the International trade of Textile and Clothing: Threat and Opportunity.

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Abstract

This paper analyzes the threat and opportunity of textiles and clothing industry in Cambodia by employing SWOT analysis, quantitative method of revealed comparative and competitive advantage. The findings reveal that Cambodia has both comparative and competitive advantage of garment industry comparing to another Asian garment exporting countries-namely India, Pakistan, Thailand, and Vietnam, except Bangladesh. Whereas the Cambodian textile industry experiences both comparative and competitive disadvantage as it obtains the lowest score among counties in this study. Our analysis shows that the Cambodian T&S sector faces the risk of EBA, negative impact on the US-China trade war. Vietnam’s readiness, along with good trade policy between India and Bangladesh, is also has a negative impact on Cambodia. Cambodia must consider long-term and medium-term strategies to expand competitiveness for T&S exports. Nevertheless, the term of trade could obtain positive growth since the price of garment and textile products experiences an increasing trend.

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