Cambodia garment sector faces ongoing challenges
At first glance, Cambodia's garment sector is doing fine, with data from the International Labour Organization (ILO) pointing to a 14.7% jump in exports during the first quarter. But dig deeper, and the Cambodian garment industry is less optimistic.
At first glance, Cambodia's garment sector is doing fine. ANZ Bank recently predicted 7.2% GDP growth in 2016, mainly fuelled by rising clothing exports. And just-released data from the International Labour Organization (ILO) points to a 14.7% jump in the country's clothing shipments to US$1.605bn during the first quarter of this year. But dig deeper, and it seems the overall situation of the Cambodian garment industry is less optimistic.
Following a weekend of talks, garment and footwear unions in Cambodia have agreed to demand US$179.60 as the monthly minimum wage for 2017.
As annual discussions get underway in Cambodia on a new minimum wage for garment workers, a new report warns significant further wage increases will be hard to achieve unless higher prices are paid by retailers and brands.
Cambodia’s concentration in garment production, along with slowing growth in China – one of its key sources of investment, trade and concessional loans – are seen among the headwinds facing its overall economic strength, a new report says.
Cambodia unions target US$177 monthly minimum wage as annual talks loom
Transparent reporting of garment factory compliance in Cambodia is contributing to better conditions for workers, a new study has found – although the top compliance issues remain ongoing.
Final results of a multi-year study into the health of Cambodian garment workers has found that the incidence of anaemia – which can lead to chronic fatigue and low productivity – not only remains higher than in the population at large but is also on the rise.
Falling productivity and rising infrastructure costs within Cambodia's garment sector may be putting it at a disadvantage compared with Vietnam, Bangladesh and Myanmar, the country's apparel industry association has said.
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