Thursday, December 11, 2008

Garment Orders Plummet as Factories Close

By Sok Khemara, VOA Khmer
Washington
10 December 2008



The global economic downturn has led to a drop in orders for Cambodia’s garment industry by nearly a third, a worrying statistic, industry leaders said Monday.

The economic downturn, which has hit the US—Cambodia’s top purchases of garments—as well as the EU and Asia, resulted in the fall of orders by 30 percent, along with lower bids for the orders that do come in, said Cheat Khemara, a representative of the Garment Manufacturers Association of Cambodia, as a guest on “Hello VOA.”

The $2.6 billion industry is one of Cambodia’s main economic engines, employing more than 300,000 workers.

Chea Mony, president of the Free Trade Union, said Monday that at least 10 factories have closed down and six or seven have suspended operations in the wake of the downturn, which began in earnest in September.

“Until today, we do not know what is the real problem of these closures or suspensions, the crisis, or no buyers?” he said, also as a guest on “Hello VOA.”

4 comments:

Anonymous said...

Doesn't matter anyway. Khmer are very rich right now, esp. those in Phnom Penh. If you don't believe me, go to PP, and count the number of 08 Lexus, Land Cruiser, and you will know how poor you are even if you are in America, Australia or France.

They earn in one day what we work for in one year. A 50,000 USD car purchase is like clothes.

Those overseas who have never come to PP are very very mistaken about the economic strength of this country.

Anglyt.

Anonymous said...

Approximately, 30% of population stepping in and out poverty line due to immediate circumstances. The medium and rich class have never been surveyed for percentage.

Anonymous said...

Finally,Mr. Vichea Chea has amiditted the impact of global economic crisis on Cambodian garment industry. A few weeks ago, he was not aware of the impact if any existed. It seemed to me that he had no knowledge about the economy and business at all. He was sleeping while American people dropped off their keys and left their home.

Anonymous said...

I agreed, too, and Cambodian oversea might not realize the richness of Cambodian people if they have never visited Cambodia. However, please think in these way. The top rich makes up only 5% and the second rich is 15%. The rest 80% are farmer and might live under poverty line. It is not indifferent to you, American Cambodian, who live as working class or middle class American. And you are out of reach with people like Bill Gate. By the way, your life is way way way better off than those 80% of Cambodian population. The gap b/w the rich and poor are widening obviously.