Garment industry facing heat of global financial crisis
December 23, 2008 - Cambodia
Cambodian Ministry of Commerce recently reported that nearly 62,000 textile and garment workers lost their job since July this year, largely due to the global financial crisis which is responsible for either permanent closure or temporary suspension of operations in local factories.
The textile and garment is one of three largest foreign currency earning industries of Cambodia that employs around 350,000 workers, most from the country side.
This industry exports 70 percent of its products to US market, where the financial crisis is at its peak. Therefore, slump in exports to such huge market in recent months has affected many factories to such an extent that they had to pull their shutters down.
In addition, the financial crisis has engulfed Korea as well, the largest investor in textile and garment industry of Cambodia. Market experts opine that this is one of the key reasons of the production decline in the country.
During the period from January to July, Cambodian textile and garment industry faced almost 66 strikes, escalated by 37.5 percent over similar period last year.