Fibre2fashion News Desk - India
Cambodia
The global economic turmoil has started taking its toll worldwide and it is the smaller and under developed economies of the world who are the first to face the brunt of the development. Cambodia which has a very small garment sector but on which it is economically dependent has been badly hit by the crisis.
The recessionary trends prevailing mainly in its main markets of the US has brought with it a fear of closures and mass lay offs in the export oriented sector. The garment sector of Cambodia, which is the leading export earner and employment generator for the country, is presently collapsing under the pressure built up by falling US orders.
Slowdown of the US economy has immensely hurt the revenues flowing into Cambodia as well as the profit of the exporters. More so because unlike other competing countries like Thailand, the Cambodian garment manufacturers cum exporters failed to diversify its markets in to Europe, Russia and the thriving Middle East.
About 70 percent of the garment exports of Cambodia are directed to the US while only 24 percent go to the EU. Experts believe that slowdown in US will lead to further drop in the sales of clothing
There is an expectation of nearly 35-40 garment exporting units closing in the next two months as new orders have trickled down or have totally stopped coming in. Already it seems nearly 20,000 employees have been laid off and if these other companies close down it will add nearly 25,000-30,000 to that number.
Most of the other garment export companies are working between 50-70 percent capacities due to lack of orders and according to some exporters they do not expect the situation to improve even in 2009.
But labour unions counter the observations made by these garment companies by saying that those companies which have closed down, have done so due to labour related issues and have shifted their operations elsewhere, but do accept the gravity of the situation created by the crisis.
The recessionary trends prevailing mainly in its main markets of the US has brought with it a fear of closures and mass lay offs in the export oriented sector. The garment sector of Cambodia, which is the leading export earner and employment generator for the country, is presently collapsing under the pressure built up by falling US orders.
Slowdown of the US economy has immensely hurt the revenues flowing into Cambodia as well as the profit of the exporters. More so because unlike other competing countries like Thailand, the Cambodian garment manufacturers cum exporters failed to diversify its markets in to Europe, Russia and the thriving Middle East.
About 70 percent of the garment exports of Cambodia are directed to the US while only 24 percent go to the EU. Experts believe that slowdown in US will lead to further drop in the sales of clothing
There is an expectation of nearly 35-40 garment exporting units closing in the next two months as new orders have trickled down or have totally stopped coming in. Already it seems nearly 20,000 employees have been laid off and if these other companies close down it will add nearly 25,000-30,000 to that number.
Most of the other garment export companies are working between 50-70 percent capacities due to lack of orders and according to some exporters they do not expect the situation to improve even in 2009.
But labour unions counter the observations made by these garment companies by saying that those companies which have closed down, have done so due to labour related issues and have shifted their operations elsewhere, but do accept the gravity of the situation created by the crisis.
10 comments:
First they give land's concession to foreigners.
Maybe the 3 monkeys's government want to transform
50% of the women in the garnment industries into
a karaoke girls...
These days, women are good farmer too.
Please, keep the land for our poor peasants !
Don't bring cambodians into the Khor-5 again !
This is what our Prime Minister is going to say on his next public speech. " Dear Khmer relatives, with all the concerns about world economic melt-down I am warning you all that our country will effect as well. But, don't worry I and my cronies will steal a little less from you all for the time being. Thank you, thank you".
"p.s. By the way, we have to check with our bosses in Hannoi first whether they allow us to do it or not. Otherwise, we'll continue to steal as much as like before. Thank you."
khmer farmer may be about too late to hold their land .evil business as yuon veit minh they used Ah HUN power and military to evicted lands from khmer farmer and khmer who like to playgirl in capital and stylist .they will lost everything included their life also.
land market to do frams will grip up in cambodia by yuon direct and not allowing sale rice to another market out from them .
2:49AM,
Hello, Hello, Hello, all of you, whiners out there, …oops I mean my honorable citizens….
This is your PM HS, speaking. Yes, you’re damned right it’s me again…
See, jerks like you blame me for anything and everything. Before, you only blamed me for the malaises in the country. Now, you blames me for the world financial crisis. Good progress for your cynical, useless mentality. What a bunch of hypocrites! ….oops I mean honorable citizens.
3:49AM,
Hello Mr. Dictator...oops Doctoral Hun Sen. This is not a blaming game, but a saying game. How come millions of Youn immigrants have land to live and live peacefully in our country and many our Khmer families have been evicted from their land and become landless?. How many more Youn settlers do your administration need to bring into our country before we pay off Hannoi's debts?. And many Youn settlers do you need to let in for every year the Hannoi keeps you in power?. If you don't mind Mr. Dictat...oops I almost did it again Mr. Doctoral Prime Minister.
Khmer Citizen PP
Looks like time to form the Indochina Federation.
They the Hun Sen's clowns and lickspittles have always bragged that businesses in Cambodia are moving prosperously in the right direction and Hun Sen also predicts that next year economy will grow 7%, so there will be no sector collapsed
underneath the rulership of PhD (Pee Hun Dummy Hun Sen.
It's normal for American economy has a slowdown because the were major disasters, human-made and natural ones, and wars against terrorists, yet America provides finacial assistance to millions of workers who got laid off, to SSI department, to welfare department, and to many more. What has the Hun Sen government done in term of helping his people who desperately need assistance? And don't Hun Sen cronies bark in defense that Cambodia cannot to do so; it's bullshit indeed!
Ah Scam Rainxy must be lock up to save Cambodia.
stop barking, you mad damned dog, 10:48AM.
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