Home / Knowledge / News / Apparel/Garments / Economic turmoil begins collecting toll

Economic turmoil begins collecting toll

22
Nov '08
The global economic turmoil has started taking its toll worldwide and it is the smaller and under developed economies of the world who are the first to face the brunt of the development. Cambodia which has a very small garment sector but on which it is economically dependent has been badly hit by the crisis.

The recessionary trends prevailing mainly in its main markets of the US has brought with it a fear of closures and mass lay offs in the export oriented sector. The garment sector of Cambodia, which is the leading export earner and employment generator for the country, is presently collapsing under the pressure built up by falling US orders.

Slowdown of the US economy has immensely hurt the revenues flowing into Cambodia as well as the profit of the exporters. More so because unlike other competing countries like Thailand, the Cambodian garment manufacturers cum exporters failed to diversify its markets in to Europe, Russia and the thriving Middle East.

About 70 percent of the garment exports of Cambodia are directed to the US while only 24 percent go to the EU. Experts believe that slowdown in US will lead to further drop in the sales of clothing

There is an expectation of nearly 35-40 garment exporting units closing in the next two months as new orders have trickled down or have totally stopped coming in. Already it seems nearly 20,000 employees have been laid off and if these other companies close down it will add nearly 25,000-30,000 to that number.

Most of the other garment export companies are working between 50-70 percent capacities due to lack of orders and according to some exporters they do not expect the situation to improve even in 2009.

But labour unions counter the observations made by these garment companies by saying that those companies which have closed down, have done so due to labour related issues and have shifted their operations elsewhere, but do accept the gravity of the situation created by the crisis.


Fibre2fashion News Desk - India


Interviews View All

Top executives, Fabric manufacturers

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Anshul Sood, Oceedee

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Deepak Mundra,

Deepak Mundra

Surat-based Madhusudan Group is a vertically integrated textile...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

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


October 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search