Interview of the Week: Herman Leung, Vice President of Sales and Operation, DAKOTA Group
With insights from the inaugural Cambodia Global Textile Summit 2025 still fresh, Senior Communications Officer Stew Post caught up with Herman Leung, Vice President of Sales and Operations at Hong Kong based firm DAKOTA Group. Overseeing sales and regional operations, including in Cambodia, China, Myanmar and Vietnam, he is responsible for ensuring customers receive the quality products and service they have come to expect from the company. The pair discussed DAKOTA's recent PG娱乐城 membership, standout lessons from the textile summit and the potential impacts of rising global trade tensions.
Stew: DAKOTA just officially joined PG娱乐城. As a new addition to the network, what are your hopes for DAKOTA's membership in the Chamber?
Herman: We’re really excited to be part of PG娱乐城—it’s a great move for us and the perfect time to get involved in Cambodia’s growing business scene. For DAKOTA, this is about three big focus areas: First, we want to help shape policies that make Cambodia more competitive and attractive for investment. Second, with more than 40 years in the garment industry and 25 years in Cambodia, we’re looking forward to sharing what we know — especially in manufacturing, vertical integration and sustainability — areas where we believe we can bring real value. And third, we’re all about building strong connections with other members to find ways we can work together and grow. At the end of the day, PG娱乐城 fits exactly with what we’re trying to do—create real, lasting impact while supporting Cambodia’s progress.
Stew: One of the topics discussed at the recent Cambodia Global Textile Summit 2025 – at which DAKOTA was a sponsor and key participant – was vertical integration and upstream supply chains. How do these topics fit into DAKOTA's operations in Cambodia? Does your group have any goals regarding this?
Herman: Vertical integration has transitioned from being a competitive advantage to an industry imperative as Cambodia prepares for LDC graduation and the eventual phase-out of EBA trade preferences. At DAKOTA, we recognised this shift early - in 2017, we established one of Cambodia's first vertically integrated fabric mills specifically to future-proof our operations against these coming changes.
Developing a complete domestic textile ecosystem brings several strategic advantages. First, it improves supply chain resilience by reducing reliance on imported materials that are vulnerable to global disruptions. Second, it cuts lead times and lowers costs, helping manufacturers respond faster and more competitively to market demands. Finally, it builds synergies across the supply chain, making it easier to move into more value-added products and position the industry for sustainable growth beyond preferential trade terms.
The reality is simple - to keep Cambodia's textile industry thriving post-EBA, we need more players investing in upstream capabilities like our fabric mill. That's why we're actively working with partners to develop this full supply chain ecosystem. It's not just good for DAKOTA; it's critical for the entire sector's future in Cambodia.
Stew: Were there any other highlights of the summit? What were the key takeaways for your firm?
Herman: The Textile Summit highlighted several critical priorities for Cambodia’s garment sector as it prepares for LDC graduation. Three key themes emerged that will shape the industry’s future:
Vertical Integration as a Survival Strategy: With the EBA transition, the consensus was clear - Cambodia must move beyond cut-make-trim operations. Developing upstream capabilities like fabric production and dyeing is no longer optional but essential to remain competitive in a post-trade preference era.
Sustainable Industrialisation: As emphasised in multiple panels, environmental compliance is becoming a market access requirement. The shift toward circular production models and renewable energy integration was highlighted as both a challenge and opportunity for regional competitiveness.
Workforce Transformation: The skills gap for advanced manufacturing emerged as a pressing concern. There’s growing recognition that workforce training systems need fundamental restructuring to support higher-value production and technology adoption.
These insights confirm that Cambodia’s textile sector is at a turning point. The summit made clear that success will require unprecedented collaboration between brands, manufacturers, government, and development organisations to build a more resilient, value-added industry.
Stew: The world has been thrown into turmoil following the recent announcement of sweeping tariffs from Washington. While there is certainly potential for significant challenges for Cambodia’s garment sector, do you think there could be a silver lining to a diversification in export destinations for the industry?
Herman: Yes, Cambodia’s garment sector could certainly benefit from diversifying its export markets, especially in light of new US tariffs disrupting global trade. Historically, Cambodia’s garment industry has been heavily reliant on a few key markets, particularly the US and the EU. While these remain important, diversification would help reduce dependency risks and enhance resilience against external shocks such as tariff changes, economic slowdowns, or policy shifts.
Exploring emerging markets in Asia, the Middle East, and Africa could open new opportunities for Cambodian manufacturers. Additionally, building stronger regional trade ties through frameworks like the Regional Comprehensive Economic Partnership (RCEP) could further support growth.
Diversifying export destinations would not only stabilise demand but could also encourage the sector to innovate, adapt to new consumer preferences, and improve its overall competitiveness globally.
At the same time, the US remains a key market, and Cambodia has moved quickly to engage in discussions to safeguard this relationship, showing its commitment to keeping major export markets strong while exploring new ones.
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