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Garment sector fails to meet 2008 export levels
Jan '11
Though the garment and textile exports of Cambodia registered a 20.15 percent growth during the initial 11 months of 2010 as over the corresponding period last year, but still it did not succeed in meeting the 2008 levels. The sector's exports grew from US $2.347 billion during January to November, 2009 to US $2.82 billion in 2010.

The fall was mainly because of the industrial actions on the part of the garment employees. If they would not have observed several strikes during the year, the sector's exports would have exceeded the 2008's levels. Though, this does not mean that the workers do not have a right to protest, but then they should do that lawfully.

Since the global economy has revived from the effects of recession, the Cambodian economy is also expected to follow the same trend mainly because the US constitutes its biggest export market for garments with a share of 65 percent.

The exports to US grew by 16.73 percent from $1.405 billion in 2009 to $1.641 billion during the period under consideration, while the exports to the EU also registered a rise of 18.46 percent from $593.2 million to $702.8 million. Meanwhile, a rise of around 34 percent was also registered in the sector's exports to other foreign countries, which grew from $331.49 million to $443.95 million.

The overall garment exports of Cambodia for the entire year of 2010 is believed to have touched around three billion dollars, but still it is less than the 2008's exports of $3.158 billion.

According to the reports, around 20 new garment firms have been started in 2010, but then no accurate details are available with regard to the number of factories that went out of operation during the year.

The country has recently earned preferential tariff on its exports to the EU, which is likely to further hike the sector's exports during the current year.

Fibre2fashion News Desk - India

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