Home / Knowledge / News / Apparel/Garments / Koreans plan to move base from China to Cambodia
Koreans plan to move base from China to Cambodia
10
Jul '10
Apparel firm owners of South Korea, with plants in China have been planning to shift base to the Kingdom of Cambodia, to benefit from cheap labour there, informed, South Korean Chamber of Commerce President, Nam-Shik Kang.

Owing to increasing wages of labourers in China, quite a few investors from Korea are intending to relocate their manufacturing base to Cambodia, added Kang.

The reason behind the increasing wages of Chinese work force is that most of them are now moving towards the rapidly growing IT and automobile industries, wherein they can demand for increased and improved pay packages.

Hence, in order to retain workers in apparel firms, the Chinese government was agreeing with the demands for increasing wages. But apparel firms cannot survive in China with such high wage structures and therefore factory owners are now looking at shifting manufacturing base to other nations such as Cambodia, averred Kang.

The apparel industry of Cambodia is one of Kingdom's biggest exporters. In 2009, the sector was adversely affected, as exports reduced by 15.83 percent to $2.658 billion, informed Ministry of Commerce.

However, Kang's comments have come at a time, when the government decided to increase the minimum wage for apparel firm labour force in Cambodia to $61 from $50 per month.

But Oum Mean, Secretary of State from the Ministry of Labour and Vocational Training informed that, Cambodia should take utmost benefits from the new interest of Chinese production units, who are lured to the Kingdom owing to cheap labour, or else investors might run away, leaving Cambodian labourers to suffer.

As of now, about 35 South Korean apparel firms are operating in the Kingdom, informed Kang, and the apparel segment enters a period of meek growth, especially after a fall in US retail demand that had affected exports in 2009.

However, during the first five months of 2010, apparel exports of Cambodia increased to over 11 percent as against the first five months of 2009.

Fibre2Fashion News Desk - India


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

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

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Top executives
Textile & apparel bodies

The decision is transformational

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Ashok Desai
Bombay Textile Research Association

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

Steve Cole
Xerium Technologies

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

Kerem Durdag
Biovation II LLC

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Madhu Jain
Madhu Jain

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

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

October 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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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