Cambodia’s garment sector is being urged to modernize and increase its value-added production as the nation approaches graduation from Least Developed Country (LDC) status. Officials and industry representatives warn that relying solely on low labor costs will no longer be sufficient for maintaining competitiveness in the global market. The focus is shifting towards investment in worker skills, improved productivity, and the manufacturing of higher-value goods. This transition is considered crucial for sustaining the industry’s growth and economic contribution. The move comes as Cambodia prepares for the economic and trade implications of losing LDC benefits. Industry stakeholders are actively discussing strategies to navigate this evolving landscape and ensure long-term viability. The call for change signals a proactive approach to securing the future of Cambodia’s key export sector.