Cambodian officials have warned production will slow at 200 garment factories due to a lack of raw materials linked to the coronavirus (Covid-19) outbreak in China.
Heng Sour, a spokesperson for the Ministry of Labour, told local reporters about ten factories with 3,000 workers have notified the government already that they will partially halt operations.
“From predictions as well as an actual survey about the impact of coronavirus, we know that in March nearly 200 factories will face a lack of raw materials and it will affect about 110,000 workers,” Heng Sour said, according to Reuters.
The move sees the country’s garment sector pressured further after the European Commission last month confirmed it would withdraw some of Cambodia’s preferential access to the EU market. The move means from mid-August it will be charged duties on some garment and footwear products and all travel goods at the WTO’s Most Favoured Nation (MFN) rate.
The Cambodian government is understood to have promised tax breaks to garment factories hit by the EU’s partial removal of preferential trade access, and supply chain disruptions from the coronavirus epidemic.
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