Cambodia’s Ministry of Labour and Vocational Training has signed an MoU with German development organisation Gesellschaft fur Internationale Zusammenarbeit (GIZ) to extend an initiative aimed at achieving sustainable growth in the country’s textile and garment sector.
The ‘Sustainable Growth in Garment and Textile Industry in Asia’ project is the second phase of a multinational initiative that was first implemented in Bangladesh, Cambodia, China, Myanmar and Pakistan in 2016. Vietnam was included this year. The initiative will now be extended until 31 March 2021 with a total budget of EUR6m.
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It will support state and private institutions to exchange information and dialogue at national and company levels to strengthen social and labour compliance laws in Cambodia. It is also to provide financial and technical support to help Cambodia become more efficient and transparent so it is trusted by all stakeholders.
Local press, citing Ith Sam Heng, the minister of labour and vocational training, said that since its 2016 launch, the assistance provided by GIZ has improved the effectiveness of the work inspection system and conditions in the textile and garment sector.
According to the re:source by just-style strategic sourcing tool, Cambodia is a key supplier to many of the world’s largest garment, footwear, and travel goods companies. It was the sixth-largest garment supplier and the fourth largest footwear supplier to the US last year, and the fifth largest garment and footwear supplier to the European market. Sales to Europe and the US combined in 2018 reached US$$8.5bn, or more than one-third (38%) of Cambodia’s total Gross Domestic Product (GDP). Further, apparel, footwear, and travel goods account for 80% of Cambodia’s total exports.
The European Union (EU) is currently assessing the human and labour rights situation in the country as part of the process to decide whether to end its access to the Everything But Arms (EBA) duty-free trade benefit.
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By GlobalDataAnd European and international apparel, footwear and travel goods buyers that source from the country have repeatedly have repeatedly urged the government to tackle its labour issues.
