Recently, Zhang Bin, the director of the Commerce Department of Hainan Province, led a delegation to hold an economic and trade meeting with Lim Lok Piseth, the secretary of the Ministry of Commerce of Cambodia. Both sides officially reaffirmed their core commitment to continuously expand bilateral trade and investment cooperation. They focused on leveraging the strategic gateway advantages of the Hainan Free Trade Port to deepen multi-field industrial collaboration. The official strategic cooperation that has been implemented this time has opened up new policy and channel benefits for the connection of the upstream and downstream of the textile and clothing industry chains in China and Cambodia, as well as for cross-border trade circulation and overseas capacity layout. It has become an important trend indicator for the cross-border layout of the textile industry.
As a core pillar industry of Cambodia, the textile and garment industry is the main force for generating foreign exchange through exports. With a mature OEM industry foundation, abundant labor resources, and the benefits of international trade policies such as EU EBA tax exemption and US preferential treatment, Cambodian textiles occupy an important position in the global mid-to-low-end clothing and home textile supply chains. It has extremely strong cost and export advantages. At the same time, relying on the RCEP regional trade rules, the tariffs on Cambodian textile and garment products for China have continued to decrease, laying a solid foundation for the mutual trade and capacity complementarity between the two sides in the textile sector.
In response to the current challenges in Cambodia's textile industry, such as insufficient self-sufficiency rate of fabrics, lack of high-end production capacity, and incomplete industrial chain complementation, the Cambodian side is actively seeking the empowerment of Chinese technology, production capacity and supply chain resources. It hopes to achieve a deep cooperation to fill the industrial gaps and enhance the added value and international competitiveness of local textile products.
The Hainan side has focused on promoting the exclusive industrial support policies and strategic development plans for the free trade port. Around core areas such as cross-border trade, two-way investment, modern logistics, and green industries, a series of favorable measures for attracting investment have been introduced. Compared with traditional cross-border channels, the Hainan Free Trade Port has core advantages such as zero import tariffs, tax and consumption tax exemptions, and efficient and convenient cross-border logistics. The stable short-haul route from Sihanoukville to Haikou significantly reduces the transportation cycle and logistics costs for textile raw materials and finished products between China and Cambodia, and has built an efficient hub channel for bilateral cross-border textile trade.
This strategic cooperation between China and Cambodia precisely aligns with the development trend of China's textile industry's transformation and upgrading, as well as the optimization of overseas production capacity layout. It has formed a highly valuable new pattern of industrial complementarity. From the perspective of industrial chain division, domestic textile enterprises can leverage the policy benefits of the Hainan Free Trade Port to export high-quality fabrics, textile machinery, intelligent production technologies, and environmentally friendly dyeing and finishing processes to Cambodia, thereby compensating for Cambodia's shortcomings in the upstream industrial chain; at the same time, they can orderly establish terminal production capacity such as clothing and home textiles in Cambodia, taking advantage of its tax-free advantages in international trade to avoid trade barriers and expand global export markets.
At the trade circulation level, the Hainan Free Trade Port can establish a distribution center for the textile industries of China and Cambodia, enabling the low-cost import of Cambodia's textile finished products to China and the efficient export of domestic textile raw materials and equipment to Cambodia. This will facilitate the two-way circulation of goods, forming a cross-border collaborative model of "Hainan research and distribution + Cambodia production and manufacturing". Moreover, the cooperation orientation focusing on green modern industries of both sides also aligns well with the current development trend of the textile industry towards low-carbon transformation and green production, providing a new path for the green cross-border layout and sustainable development of the industry.
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