Cambodia’s apparel, textile, footwear and travel goods exports reached $13.9 billion in 2024, representing a 23 percent increase over the previous year. To continue that momentum, the country is working to strengthen brand ties and prove itself as a safe, fair working environment for the more than 900,000 workers in the industry.
Emerald Am, country manager for the Life and Building Safety (LABS) foundation initiative and IDH (Transforming Markets) in Cambodia, engages in high-level advocacy work with the government, collaborating with NGOs, CSOs and the private sector, and building lasting relationships through networking.
Through the LABS initiative, AM works alongside leading international brands and retailers such as Amazon, Gap, Nike, Target, VF Corp. and Walmart to address and mitigate electrical, fire and structural safety risks within Cambodia’s apparel, footwear, handbags and accessories sector.
Emerald also serves as the vice chair of IDH’s Global Employee Council, chairman of Benelux, chairman of the European Chamber of Commerce in Cambodia’s Garment & Manufacturing Committee and is also a member of the board of directors for humans of Phnom Penh. Here, Am gives an update on the LABS Initiative while also sharing insights into social compliance trends in Cambodia.
Hertzman Global Intelligence: LABS, through IDH, has been active in Cambodia for three years. What impact has the organization had on factory safety in that time?
Emerald Am: Over the past three years, the Life and Building Safety (LABS) Initiative has significantly contributed to improving worker safety in Cambodia’s apparel, footwear, accessories and home-textile sectors. LABS’ associated partner firms have conducted assessments in over 120 factories, identifying electrical, fire and structural risks and supporting remediation and mitigating risks to minimize accidents.
Since launch, we’ve seen a measurable reduction in safety incidents in the factories associated with LABS and heightened awareness across factory management teams. Beyond safety infrastructure, LABS integrates gender-intentional policies, including training female workers, and has set up a reporting platform providing direct access to the factory workers and management to directly report issues related to electrical, fire and structural safety issues in their workplace.
Our ultimate goal is to establish a self-sustaining safety management system in the country’s apparel industry manufacturing ecosystem.
“With sustained reform momentum and buyer engagement, Cambodia could consolidate its position as a trusted second-tier sourcing country.”
—Emerald Am, Life and Building Safety (LABS) foundation initiative and IDH (Transforming Markets)
HGI: Social auditing is frequently under the microscope. In your opinion, what are the limits of social auditing and what’s the better approach to protecting worker rights?
E.M.: Social auditing alone cannot guarantee improved working conditions; it’s often episodic and checklist-driven. The limits are especially apparent in areas like freedom of association, gender-based violence and harassment (GBVH) or grievance resolution, where context and continuity matter more than compliance snapshots.
A more effective approach combines capacity building, transparent remediation tracking and worker empowerment mechanisms, including functioning grievance systems, dialogue platforms and gender-equality integration.
HGI: What aspects of incoming ESG legislation, such as the CSDDD, are you most optimistic about?
E.M.: The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) is a game-changer, particularly in how it mandates companies to engage deeply with their supply chains, not just audit them. I’m most optimistic about the legal obligation to identify, prevent and mitigate adverse labor and environmental impacts; the focus on meaningful stakeholder engagement, including unions and local actors; and the integration of gender and vulnerable group considerations.
CSDDD raises the bar for responsible sourcing and levels the playing field for supplier countries like Cambodia, which are already making compliance investments.
HGI: EuroCham Cambodia is committed to protecting and empowering women. What percentage of garment workers in Cambodian factories are women? How is EuroCham Cambodia working to increase the number of women in management roles?
E.M.: According to ILO Better Factories Cambodia and TAFTAC (Textile, Apparel, Footwear and Travel Goods Association in Cambodia), women represent approximately 75 to 80 percent of Cambodia’s garment workforce. Yet, they remain underrepresented in supervisory and managerial roles.
EuroCham, through its Garment & Manufacturing Committee, is supporting initiatives to close this gap. It is working with members to implement gender equality audits, leadership training programs and mentorship platforms. Through the Responsible Business Hub, it also supports national campaigns like RISE through their partners such as ILO Better Factories Cambodia, CARE Cambodia, GAP’s P.A.C.E. and advocates for gender provisions in corporate due diligence frameworks.
HGI: How are you — through your various roles — working to bring more garment business to Cambodia?
E.M.: EuroCham engages directly with brands, buyers and investors to promote Cambodia as a sustainable sourcing destination. It emphasizes Cambodia’s labor reforms, GSP access, safety initiatives (like ILO Better Factories Cambodia and LABS) and progress on ESG metrics.
Through LABS, I work with six major global brands: Amazon, Gap, Nike, Target, VF Corp and Walmart to scale factory safety and build trust in the sourcing environment. In my public advocacy at an individual level, I also help position Cambodia as a hub for ethical manufacturing aligned with EU and U.S. sourcing mandates.
HGI: What are some of Cambodia’s key benefits and capabilities for the EU and US fashion markets?
E.M.: Cambodia offers several comparative advantages: duty-free market access to the EU under EBA and preferential access to many markets; a young, predominantly female workforce experienced in apparel and footwear manufacturing; proven success in public-private labor governance (e.g., Better Factories Cambodia); and a strong ecosystem of sustainability partnerships, including ILO-BFC, GIZ-FABRIC and LABS
Moreover, Cambodia has demonstrated high transparency in wage reforms, safety compliance and freedom of information via ILO mechanisms, which is valuable for EU/US compliance reporting.
HGI: How is Cambodia working to become more competitive in this market? And how would you describe the outlook?
E.M.: Cambodia is investing in digitization, traceability and cleaner production. New trade facilitation laws, incentives for rooftop solar and partnerships for gender and safety compliance are strengthening its ESG position.
The outlook is cautiously optimistic. While macroeconomic challenges persist, such as electricity costs and logistical bottlenecks, the country is strategically aligning with the EU Green Deal and due diligence expectations. With sustained reform momentum and buyer engagement, Cambodia could consolidate its position as a trusted second-tier sourcing country. Factories and brands are also investing to make the facilities safer and more efficient.
HGI: Vietnam has experienced an influx of foreign investment. How does Cambodia compare and what is holding it back?
E.M.: Vietnam’s edge comes from its robust trade agreements, infrastructure and FDI incentives. Cambodia currently lags in infrastructure and utility costs and faces challenges in customs transparency (which the General Department of Customs and Excise have worked on by decreasing the number of documents needed for clearance) and investment predictability.
However, Cambodia also presents a lower-cost alternative with high ESG visibility, stable industrial relations and government openness to reform. Addressing the investment climate, particularly around logistics, green energy and regulatory consistency, could unlock more foreign investment.
