An ALGI representative (right) and a CGTI representative shake hands after signing Memorandum of Understanding.

Laos, Cambodia forge partnership to drive garment industry

The Lao and Cambodian garment industries have forged a strategic partnership, with the Association of the Lao Garment Industry (ALGI) and the Cambodia Garment Training Institute (CGTI) signing a deal to advance skills development and drive sustainable growth across the industry.
The two bodies last week inked a comprehensive Memorandum of Understanding (MOU) at the ALGI office in Vientiane, marking a transformative commitment to this purpose.
Facilitated under the ASEAN Federation of Textile Industries (AFTEX), the agreement heralds a new era of collaboration aimed at advancing skills development, promoting sustainable practices, and strengthening industry competitiveness in the two countries.
The two-year MOU outlines a comprehensive cooperative framework built on the following four strategic pillars. 
Training and capacity building will focus on rolling out tailored programmes and workshops for workers, supervisors, and managers on productivity, lean manufacturing, ESG standards, compliance, and technical skills.
Curriculum development will see CGTI’s proven training modules adjusted and applied to meet Laos’ needs, while aligning with ASEAN Mutual Recognition Arrangement and Workforce Skills Qualification.
 The partnership will facilitate cross-border knowledge-sharing through expert exchanges and site visits to CGTI’s facilities.
In the last pillar, concerning research and industry insights, the deal encourages joint labour market research, skills forecasting, and industry surveys, with the findings to be passed on to stakeholders.
“This partnership is a game-changer for our workforce development goals,” ALGI President Dr Xaybandith Rasphone said.
“By leveraging CGTI’s expertise, we can accelerate our industry’s modernisation while ensuring that Lao talent thrives regionally.”
CGTI Deputy Chair Robert Hwang added: “Together, we’ll create a skills ecosystem that drives sustainability and ASEAN competitiveness. This MOU embodies our shared vision.”
The collaboration signals a new era of AFTEX-driven synergy, positioning Laos and Cambodia as pioneers in ethical, future-ready garment manufacturing.
Originally set for a two-year term, the MOU also includes a provision for renewal upon mutual agreement.

By Times Reporters
 (Latest Update June 16, 2025)