Home / Knowledge / News / Textiles / Over 140 Cambodian garment factories shut shop
Over 140 Cambodian garment factories shut shop
30
Dec '15
Almost 150 garment and footwear factories shut down this year, while more than 50 new ones opened, according to a report of the Cambodian Commerce Ministry. The Cambodian garment industry has recently been rocked by strikes by workers demanding higher wages.

According to the report, 982 garment factories and 90 footwear manufacturers were registered with the ministry. Of these, 130 apparel factories 14 footwear factories shut down this year. Another 53 garment factories and five footwear factories registered with the ministry.

For now, the Government is not particularly bothered about the closures.

Ho Sivyong, director of the import and export department at the ministry, said that even though more factories closed than opened he was optimistic that the production would increase next year, citing pledges that some global brands had made to buy more products from Cambodian factories, one of the country's leading newspapers reported.

But Sivyong conceded that strikes for higher wages were deterring new investment, and a shift in production to Myanmar was underway. “Demonstrations and demands for higher wages from workers are a challenge for investors considering investing in Cambodia,” he said, adding that some companies that had shut factories here have shifted production to Myanmar.

Some factory closures reflected expansion at other factories. In some cases, “companies that closed production in one place opened in a new location or merged with another factory,” Sivyong said.

Economist Srey Chanthy said that trade data remained promising. Exports of garments and footwear is increasing remarkably compared to last year, he said. If companies that closed are merging with other factories this will translate into efficiency gains, Chanthy said.

Some companies that are closing may shift production to countries where wages are lower, such as Myanmar and countries in Africa, or to countries that will be part of the planned Trans-Pacific Partnership (TPP). The TPP aims to create a free trade zone among 12 countries spanning North America and countries in South America and Asia. Cambodia is not part of the TPP and garment producers are concerned that they would not be able to compete with Vietnamese exports in the US market once the TPP takes effect since Vietnam is a member of the TPP.

An unnamed executive from the Garment Manufacturers Association in Cambodia (GMAC), said some garment and footwear companies had shut production because they are losing confidence in investing in Cambodia due to demonstrations by workers, such as those that occurred in special economic zones earlier this month near Bavet town close to the Vietnam border. Police had to use water canon to break up the strike.

Investors are looking for new locations in neighboring countries to ensure safety, he said, adding that conflicts in the sector have become commonplace.

Garment factory owners in Cambodia have said the labour action is damaging the investment climate for the industry, the country's main source of exports. (SH)

Fibre2Fashion News Desk - India


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Ravindra Jain, Ashish Baid

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

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Steve Cole
Xerium Technologies

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

Eric Scholler
Groz-Beckert

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

Larry L Kinn
Suominen Corporation

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


April 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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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