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130 Cambodian garment factories suspend operations
30 Apr '20
1 min read
Pic: Shutterstock
Around 130 garment factories in Cambodia have so far submitted notices requesting suspension of operations, affecting nearly 100,000 workers, according to labour ministry spokesman Heng Sour said, who recently said garment exports will witness a 50-60 per cent decline in the second quarter of this year over the corresponding period last year.
As Cambodia is yet to receive any orders from buyers for May and June, as well as for the foreseeable future, exports in the garment and footwear sector will be hit hard in the second quarter, he was quoted as saying by a Cambodian newspaper.
The closure of markets in the European Union and the United States, the main destinations for the country’s garments, are a key reason.
The government and factory owners have agreed to provide a minimum wage of $70 per month for each suspended worker. The government contributes $40 and the rest is borne by factory owners.
As Cambodia is yet to receive any orders from buyers for May and June, as well as for the foreseeable future, exports in the garment and footwear sector will be hit hard in the second quarter, he was quoted as saying by a Cambodian newspaper.
The closure of markets in the European Union and the United States, the main destinations for the country’s garments, are a key reason.
The government and factory owners have agreed to provide a minimum wage of $70 per month for each suspended worker. The government contributes $40 and the rest is borne by factory owners.
Fibre2Fashion News Desk (DS)
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