Home / Knowledge / News / Apparel/Garments / High import bills hits RMG sector
High import bills hits RMG sector
30
Mar '10
Recently, reports have followed from the Ministry of Commerce that, during 2009, Cambodia imported raw materials worth US $1.5 billion, totalling to around 500,000 tonnes, to be used in garment manufacturing.

According to the analysts, owing to scarce availability of raw material locally, which adversely affected the competitiveness, they were required to import raw material in bulk.

Ok Boung, a State Secretary at the Commerce Ministry, stated that as at present, while their garment sector is prospering, at the same time, raw material supply is scarce and thus such imports will have to be continued in future too.

As per the Ministry reports, 415,620 tonnes of fabrics and yarn have been imported from countries like China, Taiwan, Japan and South Korea. Also the government data reveals that, 243 of the factories registered in Cambodia, exported garments worth $2.38 billion during 2009.

Cheat Khemara, an officer of the Garment Manufacturers Association of Cambodia (GMAC), opined that due to import of huge quantity of raw material, Cambodia is losing its cost competitiveness.

He also informed that, at present though such raw material imports have been made tax-free by the government, but still they are incurring higher cost for the same, because they spend considerably towards the transportation costs.

He further said that, they expect of the government to attract and enhance investments in cotton and fabric production in Cambodian factories, thus facilitating production of economical products to compete with those of the neighbouring countries.

Factories manufacturing cloth and thread did exist in Cambodia in 1960, but the sector failed to recoup the effects of the civil war.

Chhen Kimlong, Professor of Economics at Cambodian University, stated that even if Cambodia plans to manufacture these raw materials within the country, lack of technology and expertise are the hindrances which may not allow the production cost to go below the present costs of imports.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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
March 2017

March 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