Last week, Cambodian officials warned production would slow at 200 garment factories

Last week, Cambodian officials warned production would slow at 200 garment factories

Cambodia's garment factories are preparing for the arrival of raw materials from China, just a week after it was thought production in the Kingdom might slow due to shortages linked to the coronavirus (Covid-19) outbreak.

Seven container ships are expected to arrive with raw materials for the factories by today (10 March), with five docking at Cambodia's Sihanoukville Autonomous Port (PAS), and two at Ho Chi Minh seaport, due to its proximity to the Svay Rieng Special Economic Zone, according to the Phnom Penh Post.

"This is good news for garment workers," Prime Minister Hun Sen reportedly said at the inauguration of National Road 55. "Production will continue. Workers will continue to work. Factories now have enough raw materials. Do not be afraid. I thank the Chinese government for making this possible."

Last week, Cambodian officials warned production would slow at 200 garment factories due to a lack of raw materials. About ten factories with 3,000 workers had notified the government that they would partially halt operations.

The Cambodian government had reportedly promised tax breaks to garment factories hit by supply chain disruptions from the coronavirus epidemic, as well as the EU's partial removal of preferential trade access.

PAS director-general Lou Kim Chhun told The Post yesterday that the container ships were scheduled to arrive before the end of the day.

"China has restored the supply of raw materials for the garment and footwear industries in Cambodia. I am optimistic this supply will continue to increase."

Expert analysis

Cambodia: In-depth PEST Insights

Cambodia: In-depth PEST Insights

This PEST country analysis report on Cambodia provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support tr...read more