Cambodia : 'Cambodian garment sector growing despite competition'

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Home / Knowledge / News / Apparel/Garments / 'Cambodian garment sector growing despite competition'

'Cambodian garment sector growing despite competition'

04
May '17

The garment and footwear sector of Cambodia is growing despite tougher competition from regional players like Myanmar and Bangladesh, according to the Garment Manufacturers Association of Cambodia (GMAC). However, the growth rate has come down to single digit and exports grew by four per cent year-on-year in the first quarter of this year.

Some buyers are now placing orders from countries like Myanmar and Bangladesh, and decreasing their sourcing from Cambodia, GMAC president Van Sou Ieng said at an event this week.

In 2016, total export value of around 600 GMAC members stood at $6.8 billion, which was nine per cent more than the previous year. However, this was slightly lower than the average annual growth rate of 10 per cent registered over the years, Sou Ieng said.

He was, however, optimistic about Cambodian travel goods industry due to duty-free privileges offered by the US since last July.

Speaking at the same event, Cambodian labour minister Ith Sam Heng applauded strong growth of garment sector, which employs 750,000 people. He said the minimum wage is currently at $153 per month and along with other additional benefits, workers take home around $170-180 per month. (RKS)

Fibre2Fashion News Desk – India

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