CAMBODIA: Blocked US funds will not hurt garment sector
US budgets cutting development aid to Cambodia will not harm the Cambodian textile sector, its key industry association told just-style.
"I don't think it will have any impact," said Ken Loo, secretary general of the Garment Manufacturers Association in Cambodia (GMAC), who stressed that the lost finding was funnelled through the Cambodian government rather than direct to the private sector.
This is despite the signing by President Obama on 17 January of the US Consolidated Appropriations Act, which lasts until 30 September, stating that funding for economic development aid outside of basic food, health, and military will be blocked until the Cambodian government investigates "irregularities" in the July 2013 parliamentary elections, or opposition parties take their seats in the Cambodian National Assembly.
The US sent more than US$70m in aid to Cambodia for economic growth, governance, de-mining and health in 2012, for instance.
The office of US Congressmen Lamar Smith, sponsor of the legislation, declined to comment.
Prospects for the Textile and Clothing Industry in Cambodia
The clothing industry in Cambodia has expanded rapidly since the mid-1990s and has become the largest manufacturing sector in the country. Exports have risen sharply in recent years, and by 2012 combi...read more
- Low labour cost countries linked to highest risks
- Why should brands care about China cotton?
- UK reshoring hub hit by sweatshop claims
- New fibre and fabric innovations for outdoor wear
- China cotton: implications and opportunities
- South Africa to grow grass for recyclable textiles
- 30% of Adidas cotton from sustainable sources
- US West Coast port contract reached
- Activewear driving US apparel spend
- Benetton to embark on living wage roadmap
- Outdoor performance apparel: peaks, valleys, and green fields
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Global market review of swimwear - forecasts to 2019
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Apparel Retail: Top 5 Emerging Markets Industry Guide