Cambodia's textile and garment exports rose 25.2% in 2010, largely due to the global economic recovery in major markets like the US, which is its biggest customer.

Figures released by the Cambodian Ministry of Commerce (MOC) show the country's textile and clothing exports reached $2.98bn in the year. Shipments to the US were $2bn, while the EU stood at $750m.

According to Garment Manufacturers Association in Cambodia (GMAC), exports are likely to rise again in 2011 as a result of the preferential tax treatment for shipments to the EU market recently introduced under the Generalized System of preferences (GSP), as well as bilateral free trade agreements.

"The growth is in line with global economic recovery," Ken Loo, secretary general of GMAC, told just-style.

"The prospects for 2011 remain positive due to the new EU GSP rules of origin, as well as increased trade with Japan and China under the ASEAN-Japan and ASEAN- China FTA."

The Cambodian industry spent $2.174bn in 2010 on importing raw materials for local production - a year-on-year rise of 44.2%.