27 April 2010 – The global downturn has shed light on the need for Cambodian garment factories to both expand and diversify their markets to include those in Asia to reduce reliance on those in the United States and the European Union, according to a new report by the United Nations labour agency.
Nearly 90 per cent of the 66 factory managers surveyed reported having been adversely affected by the economic crisis, listing falling export orders, heightened pressure to reduce prices and the increased cost of inputs as the three main pressures they are facing.
The report by the International Labour Organization (ILO) said the recession has also exposed the need to look into boosting domestic demand for Cambodian garments.
The industry is almost entirely owned by foreigners and is export-oriented, and factories hire, on average, 700 workers and specialize in one of the following areas: T-shirts, jeans, pants, sportswear, underwear and pyjamas.
The ILO found that production-level workers have borne the brunt of job losses, while managers and other non-production staff have not been as severely affected.
A study released earlier this year found that factory closures or cutbacks due to reduced orders have forced many garment workers out of a job, with one in 10 unemployed workers having lost their positions two or more times last year and most still looking for work.
Today’s publication reported that only 5 per cent of factories exporting their products have provided assistance – in the form of counselling and help in securing new employment – to the workers they terminated.
It also pointed out the renewed urgency now for Cambodia to “develop a reliable and cost efficient electricity supply, for the benefit of all businesses,” including the garment industry, since high power costs are impeding the regional competitiveness of its garment firms.
Nearly 90 per cent of the 66 factory managers surveyed reported having been adversely affected by the economic crisis, listing falling export orders, heightened pressure to reduce prices and the increased cost of inputs as the three main pressures they are facing.
The report by the International Labour Organization (ILO) said the recession has also exposed the need to look into boosting domestic demand for Cambodian garments.
The industry is almost entirely owned by foreigners and is export-oriented, and factories hire, on average, 700 workers and specialize in one of the following areas: T-shirts, jeans, pants, sportswear, underwear and pyjamas.
The ILO found that production-level workers have borne the brunt of job losses, while managers and other non-production staff have not been as severely affected.
A study released earlier this year found that factory closures or cutbacks due to reduced orders have forced many garment workers out of a job, with one in 10 unemployed workers having lost their positions two or more times last year and most still looking for work.
Today’s publication reported that only 5 per cent of factories exporting their products have provided assistance – in the form of counselling and help in securing new employment – to the workers they terminated.
It also pointed out the renewed urgency now for Cambodia to “develop a reliable and cost efficient electricity supply, for the benefit of all businesses,” including the garment industry, since high power costs are impeding the regional competitiveness of its garment firms.
2 comments:
The GRC created the conditions for economic development and foreign investment in Cambodia and work for the people.
Naturally, there are still many things to do.
The opposition has done nothing for the country. The opposition knows only one thing to protest, demonstration, protest and demonstration sterile.
M.Son Chaay, he was asked useful questions, but he does not have any ready answers.
Because the problem is too technical exceeding his skill.
We admire his modesty in the matter.
But the intervention of M. Yim Sovann in parliament one day about the economic problem and especially the answers he has proposed on the economic problems are unclear.
To attract foreign tourists and help the exports of the Khmer products ,Riel requires a weak against the currencies of competing countries that export the same products as Cambodia.
A weak Riel is a factor of competitiveness for our economy.
But of course this costs us more expensive to import products that Cambodia can not produce itself.
We must choose between a low Riel, or a Riel strong according the government's economic objectives and the choice of economic and social models for the population.
And we can not change all the time the purchasing power of Riel according to our need becaue international countries do not accept . Because the national currency has to represent the wealth of this country through the measurement of its GDP.
Cambodia can not decide alone that Riel is equal to one Euro or to one dollar.
Inflation is a chronic economic problem known to all countries . This is another problem which has several causes.
For Cambodia's inadequate supply of consumer goods relative to demand and quantity of available currencies in circulation in the domestic market that are major causes of this inflation. And to bring down the inflation a bit, it should naturally increase the bank interest rate. You can not drive down this type of inflation by reducing bank interest rate Mr. Yim Sovann.
It is necessary to know what we want.
where we go to and which direction to take, with which means.
The economy must serve man or man must serve the economy. The market economy without regulation, the wild capitalism or model of the economy regulated , the socialist economy controlled by the state.
In life there are only the money which counts or is there are something else which counts in life?
The State must promote the happiness of the people or the state should create the minimum conditions necessary for the people can realize their own happiness?
That is the question!
M.Yim Sovann is bad economics.
His economic explanations to the National Assembly are too confusing and too simplistic.
He must return to school to update its knowledge economy.
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