Cambodia and Germany Enhance Sustainability in Garment, Footwear, and Bag Sector

Cambodia and Germany have signed a new cooperation project aimed at further strengthening sustainability and compliance with social and environmental standards in the garment, footwear, and bag (GFT) sector. On July 6, 2026, in Phnom Penh, the Ministry of Labour and Vocational Training, the Ministry of Economy and Finance, and the German Agency for International Cooperation (GIZ) signed a Technical Cooperation Agreement for the "Sustainable Textile Industry Cooperation in Cambodia Phase II (FABRIC Cambodia II)" project. This initiative seeks to enhance sustainable supply chains and improve compliance with social and environmental standards in collaboration with public and private sectors. The signing ceremony was attended by H.E. Heng Sour, Minister of Labour and Vocational Training, and Mr. Christof Weigelmeier, Deputy Head of Mission and Head of Development Cooperation at the German Embassy in Cambodia. H.E. Heng Sour expressed his profound gratitude to the German government for its continued support and close cooperation in the GFT sector. He stated that this agreement signifies the strong commitment of the German people and government to support and share solidarity with the people of Cambodia, especially its workers. H.E. Heng Sour highlighted the success of the first phase of the project and noted that the GFT industry, which remains a core driver of Cambodia's economic growth, exports, employment, and social development, is undergoing significant transformation. This is occurring as the global market increasingly focuses on sustainability, high labor standards, and responsible business practices. The Cambodian government prioritizes the promotion of decent work, productivity, environmental sustainability, and legal compliance as core priorities in its Pentagonal Strategy Phase I and the "Cambodia Garment, Footwear, and Bag Industry Development Strategy 2022-2027." The Minister highly valued the long-standing partnership with GIZ, emphasizing that it goes beyond financial support to focus on knowledge transfer, institutional strengthening, policy dialogue, and capacity development. These efforts significantly contribute to reinforcing labor inspection systems, occupational safety and health, promoting responsible business conduct, and developing the workforce, thereby preparing Cambodia to meet evolving international standards. The ministry will continue to strengthen the implementation of occupational safety and health, promote digital transformation, and enhance readiness to respond to international principles such as Environment, Social, and Governance (ESG) and Human Rights and Environmental Due Diligence (HREDD). H.E. Heng Sour stressed that the success of this project requires close collaboration among government institutions, employers, worker representation organizations, development partners, civil society organizations, and international leading brands. He expressed strong confidence that through this commitment and joint partnership, the project will significantly contribute to improving working conditions, enhancing environmental sustainability, promoting responsible business practices, and ensuring the sector maintains its competitiveness and resilience in the global market for mutual benefit. Meanwhile, Mr. Christof Weigelmeier stated that Germany is proud to continue its cooperation with Cambodia through this crucial project to further promote labor rights, environmental and social standards, and support the development of the GFT sector. He emphasized that strengthening environmental, social, and human rights standards, along with compliance checks, will enhance Cambodia's competitiveness in global supply chains. Germany is prepared to provide further support for this project and remains committed to being a strong partner for Cambodia.