The Associated Press
PHNOM PENH, Cambodia - The global recession forced the closure of 77 garment factories in Cambodia in the first nine months of 2009, throwing more than 30,000 people out of work, the government said.
Another 53 factories suspended operations in the January to September period but roughly half have since reopened, according to a report from the Ministry of Labor obtained Monday by The Associated Press.
Cambodia's garment industry is the main foreign exchange earner for the poor Southeast Asian country. Garment exports from Cambodia in 2008 were worth about $2.8 billion, with 70 percent of shipments going to retailers in the United States. The European Union is the second-biggest market.
"The closing of garment factories in Cambodia is mainly due to declining purchase orders from countries affected by the global financial crisis," said Oum Mean, deputy labor minister.
The Asian Development Bank said last month it expects Cambodia's economy to shrink 1.5 percent this year.
Ken Loo, secretary-general of the Garment Manufacturers Association of Cambodia, said the association was trying to make Cambodian factories more competitive by reducing bureaucracy, the number of illegal strikes and the costs involved in exports.
There are about 520 garment factories operating in Cambodia, which employ some 360,000 workers, mostly women.
Another 53 factories suspended operations in the January to September period but roughly half have since reopened, according to a report from the Ministry of Labor obtained Monday by The Associated Press.
Cambodia's garment industry is the main foreign exchange earner for the poor Southeast Asian country. Garment exports from Cambodia in 2008 were worth about $2.8 billion, with 70 percent of shipments going to retailers in the United States. The European Union is the second-biggest market.
"The closing of garment factories in Cambodia is mainly due to declining purchase orders from countries affected by the global financial crisis," said Oum Mean, deputy labor minister.
The Asian Development Bank said last month it expects Cambodia's economy to shrink 1.5 percent this year.
Ken Loo, secretary-general of the Garment Manufacturers Association of Cambodia, said the association was trying to make Cambodian factories more competitive by reducing bureaucracy, the number of illegal strikes and the costs involved in exports.
There are about 520 garment factories operating in Cambodia, which employ some 360,000 workers, mostly women.
2 comments:
Personally I have predicted economy led by H S who has been formally in low-level school would not be solid because he is proud of less productive sector of economy, garment which I called Kakhi economy. This economy produced lots of jobs- 350,000 of Khmer youths- but it can be seen those youths just make ends meet. They get very little wage of around 70 $ a month and try to save some for their families at home. Thus they do not have nutritious food to eat, from which comes another term: They eat their health. So H S is a failed statesman in term of economy... and also Human Rights exams.KhOpen,
correction: kakhi is meant: khaki. KhOpen,
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