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Substantial rise in Cambodia's garment exports
Jun '11
Cambodia's garment exports jumped 45 percent to US$ 1.2 billion during January to April this year, as against US$ 846 million during the same period in 2010, according to the data released by the Ministry of Commerce.

The renewed demand from Asia and the recovery of Western markets from the global financial crisis has led to the increase in exports, according to experts.

“The demand for garments manufactured in Cambodia is increasing in Japan, China and South Korea. Also, world economies are recovering from the crisis. Hence, our export orders should continue to grow,” said Cheat Khemara of the Garment Manufacturers Association of Cambodia (GMAC).

Mr. Khemara added that the Cambodian garment industry ventured into new markets in the region to balance slowdown in the US and European Union. The GMAC has predicted that the garment industry would grow by nearly 20 percent by the end of the current year.

The higher exports have, however, not resulted in similar increase in profits. It is because the firms have not increased the selling price in spite of the rise in the prices of fuel and other raw materials that are required by the garment industry, said Mr. Khemara.

Mr. Khemara further said that the garment sector in Cambodia has stabilized due to improved regulations, which have led to the growth of the industry.

Since Cambodia mostly produces lower-end garments, the impact of the financial crisis on it was minimal. However, Kong Putheara, Director, Department of Statistics, Ministry of Commerce, said that the increase in garment exports is not enough to meet the rising global demand.

Cambodia's 273 garment factories employ 319,000 workers.

Fibre2fashion News Desk - India

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