Cambodia and Germany Strengthen Partnership to Advance Sustainable Textile Manufacturing
Cambodia and Germany have reinforced their collaboration to support a more sustainable and competitive garment industry with the launch of the Sustainable Textile Industry in Cambodia Phase II (FABRIC Cambodia II) project.
The agreement was signed on July 6, 2026, between Cambodia’s Ministry of Labour and Vocational Training, the Ministry of Economy and Finance, and the German Agency for International Cooperation (GIZ). The initiative aims to promote sustainable supply chains, improve compliance with social and environmental standards, and strengthen cooperation between public and private sector stakeholders.
Speaking at the signing ceremony, Labour and Vocational Training Minister Heng Sour highlighted the importance of Germany’s continued support for Cambodia’s garment, footwear, and travel goods (GFT) sector. He noted that the partnership goes beyond technical assistance and reflects a shared commitment to creating meaningful benefits for workers, businesses, and the national economy.
The minister emphasized that Cambodia’s GFT sector remains a major contributor to exports, employment, and economic growth. However, he acknowledged that the industry is facing increasing pressure to meet global expectations related to sustainability, labour rights, and responsible business practices.
According to Sour, improving workplace conditions, boosting productivity, promoting environmental sustainability, and strengthening regulatory enforcement are key priorities under Cambodia’s development strategy. He also praised GIZ for its long-term contribution to labour inspection improvements, occupational safety, workforce development, policy dialogue, and institutional capacity building.
As part of the next phase, Cambodia plans to strengthen occupational health and safety measures, accelerate digital transformation, and improve readiness for international requirements such as Environmental, Social and Governance (ESG) standards and Human Rights and Environmental Due Diligence (HREDD) regulations.
The minister stressed that the success of the programme will depend on close collaboration among government agencies, employers, workers’ organisations, development partners, civil society groups, and international brands. He expressed confidence that FABRIC Cambodia II will help improve working conditions, encourage responsible business practices, enhance environmental performance, and strengthen the sector’s long-term competitiveness.
Germany also reaffirmed its commitment to supporting Cambodia’s textile and garment industry. Christof Weigelmeier, Deputy Head of Mission and Head of Development Cooperation at the German Embassy in Cambodia, said the project will further promote labour rights, environmental protection, and social standards while improving compliance across supply chains.
He noted that stronger environmental, social, and human rights standards will help Cambodia remain an attractive sourcing destination for global brands and improve its position within international textile supply chains.
The FABRIC Cambodia II project marks another step in Cambodia’s efforts to build a more sustainable, resilient, and globally competitive textile and apparel industry.