Home / Knowledge / News / Apparel/Garments / Economic turmoil begins collecting toll
Economic turmoil begins collecting toll
22
Nov '08
The global economic turmoil has started taking its toll worldwide and it is the smaller and under developed economies of the world who are the first to face the brunt of the development. Cambodia which has a very small garment sector but on which it is economically dependent has been badly hit by the crisis.

The recessionary trends prevailing mainly in its main markets of the US has brought with it a fear of closures and mass lay offs in the export oriented sector. The garment sector of Cambodia, which is the leading export earner and employment generator for the country, is presently collapsing under the pressure built up by falling US orders.

Slowdown of the US economy has immensely hurt the revenues flowing into Cambodia as well as the profit of the exporters. More so because unlike other competing countries like Thailand, the Cambodian garment manufacturers cum exporters failed to diversify its markets in to Europe, Russia and the thriving Middle East.

About 70 percent of the garment exports of Cambodia are directed to the US while only 24 percent go to the EU. Experts believe that slowdown in US will lead to further drop in the sales of clothing

There is an expectation of nearly 35-40 garment exporting units closing in the next two months as new orders have trickled down or have totally stopped coming in. Already it seems nearly 20,000 employees have been laid off and if these other companies close down it will add nearly 25,000-30,000 to that number.

Most of the other garment export companies are working between 50-70 percent capacities due to lack of orders and according to some exporters they do not expect the situation to improve even in 2009.

But labour unions counter the observations made by these garment companies by saying that those companies which have closed down, have done so due to labour related issues and have shifted their operations elsewhere, but do accept the gravity of the situation created by the crisis.


Fibre2fashion News Desk - India


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Eamonn Tighe
Nature Works LLC

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

Eric Scholler
Groz-Beckert

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

February 2018

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
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

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
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

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
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

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
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


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