The Garment Manufacturer's Association in Cambodia (GMAC) has signed a US$3.3m loan agreement with the French Development Agency (AFD) to build the country's first garment training institute.

The school, in the Phnom Penh Special Economic Zone, will train unskilled workers and other Cambodians who wish to undertake high level work in garment factories. The long-term goal is to help improve productivity.

The loan agreement was signed on 3 December at the AFD office in Phnom Penh by GMAC chairman Van Sou Ieng and AFD's Asia department director Gregory Clemente.

The move follows two years of discussions among executive committee members of the association, as well as legal and technical scrutiny.