HolidayPac Expands to Cambodia: Adapting to New Tariffs and Enhancing Client Value. In response to the recent implementation of new tariffs by the United States, HolidayPac, a leading Chinese packaging manufacturer specializing in PDQ, packaging boxes, cardboard displays, and shelf-ready packaging, has strategically expanded its operations to Cambodia. Thailand, This move comes as the Trump administration imposed a 10% tariff on Chinese imports and 25% tariffs on goods from Canada and Mexico, effective February 1, 2025

Why Cambodia?

Our decision to relocate to Cambodia offers several advantages:

1. Cost-effectiveness: Cambodia boasts the lowest operating costs among Asian countries, with monthly manufacturing expenses
2. Growing manufacturing sector: Cambodia's manufacturing industry is expanding rapidly, driven by investment-friendly policies and trade agreements
3. Strategic location: Cambodia's proximity to Vietnam and Thailand allows for easy integration with existing supply chains and access to regional shipping routes
4. Competitive labor costs: The country provides a sizable and affordable labor pool, ideal for labor-intensive industries like packaging

Benefits for Our Clients

By relocating our production facilities to Cambodia, HolidayPac aims to provide several advantages to our valued clients:

1. Tariff avoidance: Our move enables clients to bypass the recently imposed 10% tariff on Chinese imports to the United States
2. Cost savings: Lower operating costs in Cambodia allow us to maintain competitive pricing for our packaging and PDQ, helping our clients manage their expenses in the face of new tariffs.
3. Supply chain resilience: Diversifying our manufacturing locations enhances our ability to adapt to changing global trade conditions and ensure uninterrupted supply.
4. Quality assurance: We remain committed to maintaining our high standards of product quality and innovation in our new Cambodian facilities.

What are the main advantages of manufacturing in Cambodia？

Cambodia offers several key advantages for manufacturing:

1. Low labor costs: The minimum wage in the garment, footwear, and travel goods sector is $204 per month, making Cambodia attractive for labor-intensive industries
2. Strategic location: Cambodia's proximity to larger manufacturing hubs like Thailand and Vietnam allows it to integrate into regional supply chains and serve as a "Plus One" destination
3. Preferential market access: Cambodia has duty-free access to major markets through agreements like the Everything But Arms scheme with the EU and the Generalized System of Preferences with the US
4. Foreign investment incentives: The government offers incentives such as 100% foreign equity ownership, tax holidays up to 9 years, and import duty exemptions on machinery and equipment
5. Liberal investment framework: Cambodia allows foreign entities to maintain full ownership of their investments, which is unique in Southeast Asia
6. Growing manufacturing sector: The sector is diversifying beyond garments into electronics, automotive parts, and other higher-value industries
7. Special Economic Zones: These zones are established to promote manufacturing and offer additional benefits to investors
8. Stable economy: Cambodia has maintained steady economic growth, providing a stable environment for manufacturing investments

These advantages have contributed to Cambodia's growing appeal as a manufacturing destination, particularly for industries seeking to diversify their production bases in Southeast Asia.

Looking Ahead

As the global trade landscape continues to evolve, HolidayPac remains dedicated to providing innovative packaging and PDQ, shelf ready packaging, cardboard display solutions while adapting to market changes. Our expansion into Cambodia represents not just a response to current tariffs but also a long-term strategy to enhance our competitiveness and better serve our clients.We invite our clients to reach out to our HolidayPac representatives for more information on how this move can benefit their specific packaging needs and help navigate the challenges posed by the new tariff environment.