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.

Expert analysis

Prospects for the Textile and Clothing Industry in Cambodia

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