Is Manufacturing in Cambodia a Good Alternative to China?

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The U.S.-China trade war has put billions of dollars worth of tariffs on imports from the country and the prospect of higher tariffs under President-elect Trump has spurred many companies to accelerate their plans to shift where their products are made. These events, along with a trend of rising wages, have made many importers realize that a more diverse supply chain can provide real benefits.

An increasing number of importers have been looking for alternatives to China, with a desire to either replace or supplement their Chinese manufacturers.

Cambodia has come up because of its close proximity to China as well as its low labor costs, which are among the lowest in Southeast Asia. Making the move to Cambodia, however, is not always easy.

Read on to learn what Cambodia manufactures, how Cambodia compares to China, and the biggest challenge when switching to Cambodia.