Home / Knowledge / News / Apparel/Garments / GSP & MFN fails to accelerate apparel sector growth
GSP & MFN fails to accelerate apparel sector growth
03
Sep '08
Cambodia is one of the late entrants in the field of manufacturing and exports of apparels and clothing compared to its Asian counterparts. Despite that, the industry in Cambodia was expected to give a tough competition to its Asian counterparts like Bangladesh, Vietnam and India.

But whereas Bangladesh and Vietnam have been able to clock double digit growth rates, Cambodian shipments of apparels are barely able to scratch the 3 percent mark.

Cambodia has been granted Generalized System Preferences (GSP) as well as the Most Favoured Nation (MFN) status by US. This was a golden opportunity for the garment industry to increase its manufacturing capabilities and its exports to the biggest buyer country of apparels in the world. However it was not to be. Some where down the years, things started going wrong as the accompanying figures project.

Total garment exports from Cambodia went up marginally from US $2.62 billion in 2006 to just $2.71 billion in 2007 to post a growth of a nominal 3.23 percent. In the same comparative period shipments to its largest buyer the US, rose from $1.90 billion to $1.91 billion.

The share in total exports of apparels to US is a staggering 70.49 percent. In short the sector was totally dependent on one country for its exports.

In the first six months of 2008, total shipments of garments and textiles rose to $1.37 billion from $1.32 billion in the corresponding period of 2007 to register a gain of a very small 3.72 percent.

Shipments to the US in the same comparative period recorded near zero growth. While actual value of exports of garments rose from $967.47 to a marginal $967.78 million, however that of textiles fell from $9.10 million to $8.55 million.

The only saving grace was in its combined shipments of textiles and garments to Canada and Non-EU countries. The growth in exports to Canada was due to a surge in shipments of garments which rose by an incredible 31.07 percent which in turn helped the overall exports to grow by 36.34 percent. This growth came in no less measure to a heave from textiles as well as others goods which include accessories.

On the other hand exports to Non-EU countries also grew by a flattering 24.66 percent, once again with due help from exports of apparels which also saw an awesome growth of 24.57 percent, when compared with figures of the first half of 2008 and those of the same period in 2007.

While shipments to the European Union projected a positive growth, those to Japan depicted a negative growth in the period under review.

The Garment sector of Cambodia, which is the leading export earner and employment generator for the country and which employs around 360,000 workers, is presently collapsing under the pressure built up by falling US orders, rising fuel and raw material prices, sky-rocketing transportation costs and low productivity of workers.

Growth in exports, especially to the US, began to decline in late 2007, thanks to stiffer competition from Vietnam and Bangladesh. This year is expected to be no better or could turn out to be worse with recessionary trends visible in the markets of US and the EU.


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search