Interviews
GSP & MFN fails to accelerate apparel sector growth
03 Sep '08
4 min read
Slowdown of the US economy has immensely hurt the revenues flowing into Cambodia. More so because unlike other competing countries like Thailand, Bangladesh and Vietnam, Cambodian garment manufacturers cum exporters failed to diversify their markets in to Europe, Russia and the thriving Middle East.
Besides, rising cost of energy brought about by hike in fuel prices have also taken a toll on the garment industry of Cambodia which depends heavily on expensive diesel generators to power their plants. Rising transportation and shipping costs have brought the industry down to its knees.
Frequent strikes and low worker productivity in the sector have further brought down the growth levels considerably and added more fuel to the fire. Strikes have become a norm and more to do so with rising inflation on one hand and no increase in wages on the other hand.
This is forcing the workers to look for greener pastures and in turn creating a shortage of workmen in the industry, which is already facing a scarcity of trained personnel.
There are fears that the worsening labour situation could compel foreign owned garment companies to move to other favourable places leading to large scale unemployment. The economic growth is also likely to hover around 7 percent in 2008 compared to 10 percent in 2007.
All in all, Cambodia has not been able to take advantage of either GSP or MFN status accorded to it by neither promoting domestic industry nor by being able to attract foreign investment in large amounts in to the most dominant sector of the Cambodian economy.
Click here to view detailed statistics
Besides, rising cost of energy brought about by hike in fuel prices have also taken a toll on the garment industry of Cambodia which depends heavily on expensive diesel generators to power their plants. Rising transportation and shipping costs have brought the industry down to its knees.
Frequent strikes and low worker productivity in the sector have further brought down the growth levels considerably and added more fuel to the fire. Strikes have become a norm and more to do so with rising inflation on one hand and no increase in wages on the other hand.
This is forcing the workers to look for greener pastures and in turn creating a shortage of workmen in the industry, which is already facing a scarcity of trained personnel.
There are fears that the worsening labour situation could compel foreign owned garment companies to move to other favourable places leading to large scale unemployment. The economic growth is also likely to hover around 7 percent in 2008 compared to 10 percent in 2007.
All in all, Cambodia has not been able to take advantage of either GSP or MFN status accorded to it by neither promoting domestic industry nor by being able to attract foreign investment in large amounts in to the most dominant sector of the Cambodian economy.
Click here to view detailed statistics
Fibre2fashion News Desk - India
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
