LOCAL OWNERSHIP: A NEW CHAPTER IN CAMBODIA'S GARMENT INDUSTRY

Only 5% of garment factories in Cambodia are locally owned. Could that small percentage hold the key to a more sustainable and equitable industry?

A Look Inside the Numbers

Walk into most garment factories in Cambodia, and chances are high they’re owned by foreign investors. According to the Garment Manufacturers Association in Cambodia (GMAC) and now the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC), around 95% of the country’s garment factories are controlled by foreign stakeholders, mainly from China, South Korea, and Taiwan. Local ownership, accounting for just 5%, remains the exception—not the rule.

This dynamic shapes everything from how profits are shared to the working conditions on the factory floor. At Dorsu, we believe that locally owned factories are making a big impact. And we're not alone. Advocates for local ownership argue that it’s not just about the bottom line—it’s about empowerment, equity, and sustainability.

Why Local Ownership Matters

Keeping Profits Local
Foreign-owned factories often send profits back to home countries, but local ownership means money stays in Cambodia. Locally owned businesses are more likely to reinvest in local jobs, education, and infrastructure, fueling community growth. Companies like ours illustrate how profits can circulate within the community, funding initiatives that support local schools and social causes.

Representation & Leadership
When factories are locally owned, decision-making power shifts into Cambodian hands. This allows for homegrown leadership and more inclusive work environments. Local representation in leadership roles—especially for women and LGBTQ+ individuals—can create more equitable workplaces. Local ownership also helps challenge long-standing industry norms, introducing new perspectives on fair labor practices and worker welfare.

Sustainable Production
Sustainability isn’t just a buzzword for locally owned factories—it’s often a guiding principle. Local businesses are more likely to use environmentally conscious production methods, like sourcing deadstock fabric or minimizing waste. Cambodian-owned companies, like Dorsu, have been recognized for their efforts to promote sustainable practices, from ethical production to community-driven initiatives.

Shifting the Industry Narrative
For years, Cambodia’s garment industry has been defined by low wages, volatile working conditions, and foreign control. But local ownership offers a path to a more ethical and inclusive future. By placing more decision-making power in the hands of Cambodian stakeholders, the industry can move toward fairer labor practices, equitable workplaces, and more responsible production methods.

While 5% might seem like a small slice of the pie, it’s enough to challenge the status quo. Cambodian-owned factories, like Dorsu, serve as proof that local ownership can create lasting change. They demonstrate how ethical production and community reinvestment are possible—even in an industry as competitive as garment manufacturing.

Looking Ahead
The potential of local ownership in Cambodia’s garment industry is clear. It’s a chance to reshape the industry’s future—one where profits stay in the country, leadership reflects the community, and sustainability is more than just a trend. As the industry evolves, that 5% of Cambodian-owned factories may play an outsized role in driving a more just, responsible, and community-centered future.