Home / Knowledge / News / Apparel/Garments / Financial shortfalls affecting Cambodian garment producers
Financial shortfalls affecting Cambodian garment producers
10
Nov '11
Garment producers in Cambodia have called attention to the much-required financing for the country's budding garment manufacturing industry at a time when the World Trade Organization (WTO) hailed the economic achievements realized by Cambodia since it became a member in 2004.

Speaking at a presentation of the WTO's first trade policy review of Cambodia, Minister of Commerce Cham Prasidh said the Kingdom still falls short in providing financial backing to the garment manufacturing and agriculture sector's exports, which could help the industries in the country to grow.

The Minister said the trade sector in Cambodia still suffers dearth of liquidity from commercial banks and other financial institutions. He said the Kingdom has great potential on trade front but lacks adequate finance to fund these activities.

Garment Manufacturers Association of Cambodia President Van Sou Ieng said garment manufacturing industry is also no exception and is equally affected by the financial shortfalls.

He informed that the industry's export comes to around three billion USD per annum, which is almost equal to the Kingdom's commercial loan capacity, which leads to a shortage of funds for local trade financing and insurance.

He said while the domestic financial means have proved inadequate, the Export-Import Bank of the United States and the World Bank have also not extended any help to the industry in spite of their constant efforts and demands.

Mr. Van said that the two institutions are only required to assess the credit rating of the buyers for whom the goods are being manufactured before giving the loans.

The process should become easier when there are buyers like Gap and Levi's, still no steps are being taken in this regard and no financial support is being extended by these two institutions, he added.

According to the recently released WTO trade policy report on Cambodia, the inaccessibility of finance in the Kingdom may be linked to considerable rise in land and labour strife and also to unimplemented or lack of regulations.

In view of the continuing land conflicts at the Boeung Kak lake in Phnom Penh, the World Bank shelved new country loans to Cambodia in beginning of August this year.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search