Background to set a new oversea factory:

After two decades as a professional bag manufacturer, our company has established itself as an industry leader in quality, service, pricing, and lead times. In light of the U.S.-China trade war and the resulting tariff increases, continuing to produce solely in China would inevitably drive up costs. To address this, we have made the strategic decision to establish a new factory in Cambodia. This move ensures we can keep our commitments to our customers without exposing their supply chains to geopolitical disruptions. Moreover, Cambodia’s lower labor costs and growing maturity in bag manufacturing will enhance our long-term competitiveness—even without the tariff advantage.

Why Manufacture in Cambodia?

In 2023, we committed to a significant overseas investment by launching a new factory. Our management team conducted extensive research across Southeast Asia, evaluating each country’s bag industry landscape. Ultimately, we selected Cambodia for several compelling reasons:

Lower Tariffs: Cambodia offers more favorable tariff conditions, particularly for exports to the U.S., strengthening our price competitiveness.

Reduced Labor Costs: The relatively low labor costs help further decrease production expenses and improve overall profitability.

Maturing Bag Industry: Cambodia’s developing supply chain—including fabric availability, infrastructure, and third-party services—provides a solid foundation for producing high-quality bags.

Proximity to China: Compared to alternatives like Indonesia, Cambodia is just a short flight from China, making it easier and faster to coordinate personnel and material support from our headquarters.

Political Risk Mitigation: Diversifying production to Cambodia enhances supply chain stability and minimizes potential disruptions from U.S.-China tensions.

Regional Market Access: Its location offers strategic access to emerging markets throughout Southeast Asia.

Current Status of Our Cambodia Factory

Our new facility is situated in Phnom Penh, within a well-established industrial zone that offers convenient transportation and access to a abundant workforce.

Since commencing operations in 2024, the factory has expanded to cover 10,000 square meters and employs 630 people. Current monthly production capacity ranges from 200,000 to 300,000 pieces. For our U.S. customers, the total cost including tariffs is now lower than production in China.

Due to exceeding demand from existing clients, we are already planning to install additional production lines by 2025 to accommodate continued growth.

Synergy Between China Headquarters and Cambodia Factory

By investing fully in Cambodia while maintaining our competitive edge in China, we achieve a powerful synergy between the two locations. Our China headquarters houses a strong R&D team, a stable and experienced service team, and mature production lines for customers who prefer to manufacture in China. Our established material supply chain in China also continues to provide cost advantages over competitors.

Combined with the pricing benefits of production in Cambodia, this dual presence allows us to optimize resource allocation across both regions.

The road ahead is long, and we are eager to build strategic partnerships with you. We are confident that we can become your most reliable manufacturing partner for years to come.