Cambodia's Garment Export Reaches US$2.1 Billion In H1, Up 9 Per Cent

PHNOM PENH, July 23 (Bernama) -- Cambodia had exported garment and textile products worth US$2.1 billion in the first six months of 2012, up 9 percent from US$1.93 billion in the same period last year, a report from the Commerce Ministry showed on Monday.

According to China's Xinhua news agency, the United States and European countries are the main buyers, other clients include Canada, Japan, South Korea, China and some other Asian countries.

During the same period, the country had imported garment and textile raw materials in equivalent to US$1.5 billion, a 23 percent rise from US$1.22 billion in the same period last year, said the report.

Cambodia gives region ‘export’ advice [-If only it is as rosy as it is displayed...]

A look inside one of Cambodia’s 500 garment factories. The Kingdom’s garment sector is a model for Southeast Asia’s developing economies, insiders say. Photo Supplied

Tuesday, 03 April 2012
Don Weinland
The Phnom Penh Post

Cambodia's garment sector yesterday looked more like a teacher to regional economies such as Myanmar than a student of China and other export juggernauts.

With more than 500 garment and shoe factories – adding a new one every 10 days, according to the Garment Manufacturers Association of Cambodia – the Kingdom drew the attention of officials from Myanmar and Laos yesterday at a business-to-business dialogue hosted by the ASEAN-EU Business Summit.

“I always give Cambodia as an example to people in my country. The garment sector here has made so much progress in the past 10 years,” Khine Khine Nwe, secretary general of the Myanmar Garment Manufacturers Association, told the Post on the sidelines of the meeting.

“To be frank, we have to learn from many countries, not just Cambodia. We’re still at the first stage of development.”

Kingdom’s exports up 42% on garments, food

A ship docked at the Sihanoukville Autonomous Port in July this year. (Photo by: Heng Chivoan)

Monday, 26 December 2011
May Kunmakara
The Phnom Penh Post

Cambodia's total exports surged 42 per cent through November to US$4.5 billion from $3.16 billion, official data from the Ministry of Commerce showed, as the Kingdom’s staple products of garments, textiles and agriculture led the move.

Rising global demand, new trade agreements with regional neighbours and tariff-free shipments to the European Union drove this growth, according to Kong Putheara, director of the ministry’s statistics department.

“Our exports keep growing. We’re on a very good track,” Kong Putheara said on Friday, adding that milled-rice exports, especially, had sizeable increases during the period.

Cambodia to guard garment exports amidst EU crisis

December 17, 2011
Fibre2Fashion

The Cambodian Government is worried that the Greek economic crisis could affect the country’s garment exports to the EU, and it will take measures to absorb external shock, Keat Chhon, Minister of Economy and Finance said at a trade exhibition in Phnom Penh.

The Government has expressed concern in spite of it upgrading the Kingdom’s gross domestic product outlook for 2011. The concern stems from the fact that EU is the second largest importer of Cambodian garments, and hence crisis in the EU countries could hurt our exports, the Minister said.

The Government will take measures to absorb external shock arising from the EU debt crisis. These will include those related to strengthening domestic laws, human resources and financial institutions, he added.

Weak spots seen in Kingdom trade

Tuesday, 08 November 2011
Don Weinland and May Kunmakara
The Phnom Penh Post

While the World Trade Organisation yesterday lauded Cambodia’s economic achievements since joining in 2004, officials pointed to the lack of much-needed financing for the Kingdom’s burgeoning trade sector.

Cambodia lacks the capacity to finance the manufacturing and agriculture exports that would allow the country’s industries mature, Minister of Commerce Cham Prasidh said yesterday, speaking at a presentation of the WTO’s first trade policy review of the Kingdom, released on Friday.

“We are still running short of liquidity from commercial banks and from other financial institutions. We have a lot of warranties to trade but not [enough] money to roll out these activities,” he said.

Cambodia's economy may grow 8.7pc this year

Monday, 12 September 2011
Reuters

PHNOM PENH: Cambodia's economy can grow as much as 8.7 percent this year, its strongest in a decade, propelled by a resurgence in its garments and tourism industries, Cambodian Prime Minister Hun Sen said on Monday.

The Cambodia government's official estimate for economic growth in 2011 is 6 percent, but Hun Sen said that could be topped by a wide margin.

"There is a possibility of higher growth of 8.7 percent," Hun Sen told a graduation ceremony at a university in the capital Phnom Penh, agreeing with an estimate by a local think-tank, the Economic Institute of Cambodia (EIC).

Hun Sen, however, cautioned that "unclear economic situations in the US and Europe" will affect the country and that Cambodia should diversify its economy into other sectors such as agriculture and mining.

Garment gains: GMAC head sets clothing export goal

Tuesday, 05 July 2011
Soeun Say
The Phnom Penh Post

Cambodia is set for a 30 per cent increase in garment exports this year, according to Garment Manufacturers Association in Cambodia (GMAC) president Van Sou Ieng.

The sector was heavily dependent on foreign buyers, which were increasing their orders as the global economy recovered, he said.

“We see a very strong investment situation in the sector, and many international buyers are interested in the quality and stable pricing of Cambodian garments,” Van Sou Ieng said.

Clothing Exports to US Jump in First Quarter [-The US should tie democracy to import of Cambodian clothing to the US]

Heng Reaksmey, VOA Khmer
Phnom Penh Monday, 23 May 2011

“As in Cambodia, if we have political turmoil and instability in the country, we can’t order to buy goods from other countries.”

Cambodia’s clothing exports to the US jumped 26 percent in the first quarter of 2011, compared to the year before, signaling improvements after the 2008 economic crisis, officials said Monday.

Kong Puthear, director of statistics for the Ministry of Commerce, said some economic recovery in the US caused the bump in orders. “As in Cambodia, if we have political turmoil an instability in the country, we can’t order to buy goods from other countries.”

This year’s first quarter exports reached $521 million, up from $411 million in the same period of 2010, according to ministry statistics. Total exports for 2010 were $1.84 billion.

Cambodia was one of the 10 cheapest suppliers for the US clothing market in 2010, along with Bangladesh, El Salvador and Honduras

Bangladesh and Cambodia fastest growing US clothing suppliers

May 19, 2011
Inteletex.com

Bangladesh and Cambodia are set to be the fastest growing suppliers to the US clothing import market in 2011.

The ‘Trade and trade policy: the US clothing import market’ study, published by Textiles Intelligence, found that in the first two months of 2011, Bangladesh was the fastest growing supplier of US clothing imports, which rose in value by 39%. Cambodia was the second fastest, with US buyers increasing their purchases by 31%.

Positive indications for future garment orders from EU, US

April 11, 2011 (Cambodia)
Fibre2Fashion

The annual Asian Development Outlook provides a comprehensive analysis of economic performance for the past year and offers forecasts for the next 2 years for the 45 Asian economies that make up developing Asia.

The Asian Development Outlook 2011 emphasizes two important challenges that developing Asia must resolve to sustain the inclusive growth that is needed to eliminate poverty in the region. The immediate problem is tackling rising consumer price pressures. Inflation's insidious effects call for preemptive action to contain it before it begins to accelerate. The poor are the most vulnerable, particularly from rising food prices.

Cambodia: Based on a rebound in tourism and clothing exports, recovery in 2010 was also supported by a good year in agriculture. However there are indications that poverty has increased in recent years. The pace of growth is expected to pick up in the forecast period. Inflation will also rise. A new effort to promote rice production and exports goes some way to addressing the need to diversify sources of growth and reduce rural poverty.

CAMBODIA: Textile and garment exports surge 25% in 2010

1 March 2011
By Ngo Tuan
Jsut-Style.com

Cambodia's textile and garment exports rose 25.2% in 2010, largely due to the global economic recovery in major markets like the US, which is its biggest customer.

Figures released by the Cambodian Ministry of Commerce (MOC) show the country's textile and clothing exports reached $2.98bn in the year. Shipments to the US were $2bn, while the EU stood at $750m.

According to Garment Manufacturers Association in Cambodia (GMAC), exports are likely to rise again in 2011 as a result of the preferential tax treatment for shipments to the EU market recently introduced under the Generalized System of preferences (GSP), as well as bilateral free trade agreements.

The US will end tariff reduction on import of Cambodian garment

US Ambassador Carol Rodley gave an interview at the Meng Ieng garment factory on 28 January 2010 (Photo: Den Ayuthyea, RFA)

29 January 2010
By Den Ayuthyea
Radio Free Asia
Translated from Khmer by Heng Soy
Click here to read the article in Khmer

Carol Rodley, the US ambassador to Cambodia, indicated that, due to worldwide economic problems, the US will no longer reduce import tariff on garments manufactured in the Cambodia.

She made this statement during her visit to the Meng Ieng garment factory, a model factory with good work ethic located in Russei Keo district, Phnom Penh city, in the afternoon of 28 January.

Through a translator, Mrs. Rodley said: “The quota system does not exist anymore, therefore, US orders have dropped significantly. The US also faces severe economic problems, therefore, the US is also facing the same challenges and it is trying to tame these economic difficulties.”

Chea Mony, President of the Free Trade Union of Workers in the Kingdom of Cambodia (FTUWKC), said that if the US does not lower import tariff on garment made in Cambodia, then the Cambodian garment sector may face collapse.

He hopes that the US will take a second look to see if it has the ability to reduce import tariff on Cambodian-made garments, otherwise, this could seriously affect the livelihood of Cambodian factory workers as they may lose their job when the garment factories will be forced to close.

Chea Mony claimed: “The US will have to take a second look because if the US government does not exempt import of Cambodian-manufactured garments, and if it insists on imposing import tariff, then the US will destroy the Cambodian workers. Right now, Cambodian factory workers face severe hardship, and when the workers have no job, they will face danger and they will be forced to go find work in Thailand. Then, the Thai will shoot them, arrest them on a daily basis!”

Last week, Chea Mony sent a letter to the US Congress asking the US to exempt import tariff on Cambodian garments. Chea Mony claimed that if the US does not exempt the tariff, the Cambodian garment sector will face problems in 2010.

Nevertheless, Ambassador Rodley claimed that, in 2010, the reduction of import tariff on Cambodian garment will be eliminated. She indicated that the Cambodian garment sector will have to compete with those of her neighboring countries based on quality standards instead.

Union leader Chea Mony sends letter on tariffs to US

A vendor sews clothes at Phnom Penh’s Russian Market. Cambodian exports incur duties averaging 16 percent upon entering the United States, the Kingdom’s biggest overseas market. (Photo by: SOVAN PHILONG)

Wednesday, 13 January 2010
Sen David
The Phnom Penh Post

Free Trade Union of Workers of the Kingdom of Cambodia head calls on Capitol Hill to back bill abolishing duty on exports

THE President of the Free Trade Union of Workers of the Kingdom of Cambodia said Tuesday he had sent a letter to Speaker of the US House of Representatives Nancy Pelosi through the US Embassy in Phnom Penh as part of the latest effort to push for duty-free exports for the Kingdom.

Chea Mony, who sent the letter Monday to the speaker, said it was necessary given the huge decline in Cambodian exports to the US – mostly garments – following the onset of the economic crisis.

“It is a message to show that we want to help Cambodian workers because nowadays there are so many workers that have lost their jobs,” he said, adding that although the US donates a lot to the Kingdom, excessive corruption means that much of it does not reach the people.

“If the US wishes to help Cambodia, the US will pass duty-free access for Cambodian exports,” said Chea Mony.

While almost all garment-producing countries suffered a decline in exports last year, Cambodia suffered more than others due mostly to structural weakness in the sector and high tariffs.

In the first eight months of last year, the Kingdom’s exports to the US fell 23.31 percent compared to an average 14.3 percent slide, according to US Office of Textiles and Apparel statistics. Vietnam, where total manufacturing costs are about 20 percent lower than Cambodia, saw garment exports fall just 1.2 percent over the same period.

At the same time the Kingdom is severely hampered by US tariffs – 30 out of 49 least-industrialised countries in Asia enjoy duty-free, quota-free access to the US, whereas Cambodia is subject to an average 16 percent tariff, a fact that many – including Chea Mony – deem unfair.

The US is Cambodia’s biggest export market. In 2008, official figures showed 65 percent of the Kingdom’s exports were garments, of which three-quarters went to the US.

US Embassy Spokesman John Johnson confirmed Tuesday that the letter had been received and would be passed on to Washington.

It comes after a Cambodian delegation – including Commerce Minister Cham Prasidh – went to the US capital in November to lobby for the passage of a bill that would grant duty-free access for Cambodian garments.

Cheat Kemra, a senior official of the Garment Manufacturers Association of Cambodia (GMAC), said Tuesday that garment producers would focus more on Asia and the European Union as the US continues to struggle to recover from the economic downturn.

Also working against the Kingdom, he said, was the fact that Cambodian exports make up 3 percent of the total imports into the US – typically Washington does not grant duty-free access to exporting nations representing above 2 percent of the total.

“It is an obstacle, but we believe that the US will favour … Cambodian garment exports,” said Cheat Kemra.

Clothing sector finds benefactor in US Congressmen

January 09, 2010
Fibre2Fashion

Three visiting American Congressmen have promised to lobby for free-trade access for clothing exports to the US markets from Cambodia. This was revealed by them after a meeting with the Prime Minister of Cambodia.

Joseph Cao of Louisiana, Eni Faleomavaega, a non-voting Congressional delegate from American Samoa, and Mike Honda from California after their tour of Vietnam touched the shores of Cambodia.

Cambodian officials have also requested the US for a cancellation of a US $300 million in debt accrued during the Lon Nol period. Reacting to the request, Honda said, “It is possible to deal with the request by the three of us in Congress.”

Buyers Promise To Stick With Garment Sector

By Sok Khemara, VOA Khmer
Original report from Washington
14 October 2008

Click here to listen to the Khmer audio program

Representatives from 28 brands of garment buyers held a two-day meeting in Phnom Penh this week, expressing commitment to continue buying from Cambodia.

“The representatives stated they are recommending that their companies continue sourcing from Cambodia,” according to a joint statement from the World Bank’s International Finance Corporation and the International Labor Organization.

Garment exports are a top driver of Cambodia’s industry, but worries among the sector have mounted in the facing of an ailing global economy and improved trade relations between the US and Vietnam.

The garment industry, which employs around 350,000 workers, has sought to brand itself friendly to workers and without “sweatshops,” efforts that have at times come at loggerheads against robust activism.

Chea Mony, president of the Free Trade Union, the nation’s largest, welcomed assurances from buyers, but said representatives had done little to work with independent unions.

“It seems that the gap between the buyers and the unions if far reaching, so workers do not receive the full benefit of production through their work in a legitimate way,” he said.

The Free Trade Union has not seen criteria from buyers ordering factories to maintain good working conditions, proper salaries and workers rights, he said.

Cambodia places 6th largest garment exporter in world

PHNOM PENH, Dec. 11 (Xinhua) -- Cambodia has become the sixth largest garment exporting country in the world, the Chinese-language newspaper the Commercial Daily reported on Tuesday.

The newspapers quoted government spokesman Khieu Kanharith as saying that the pillar industry creates job opportunities for some 500,000 people in Cambodia. The spokesman made the remarks while paying a visit to Kampong Cham province.

Total monthly salary for the workers in the garment sector amounts to 300 million U.S. dollars, one million of which are remitted to their families in the countryside, said Kanharith, who is also Information Minister.

However, he said, the manufacturers have to import most equipment and raw materials, which increases their production cost.

Rural Cambodians should try to help produce more raw materials for the industry, he added.

70 to 75 percent of the kingdom's annual export volume come from garment export, according to official statistics.

Cambodia Ranks Fifth In Garment Exports: Institute

PHNOM PENH, Nov 30 Asia Pulse - Cambodia is emerging as one of the worlds largest garment and textile exporters after China, Bangladesh, Indonesia and Viet Nam, according to the Economic Institute of Cambodia.

The institute said Cambodias export earnings in garments and textiles are estimated to increase by 12 per cent in 2007 and 2008, compared with the figure in 2006.

The sector is also expected to inject more than US$3 billion to Cambodias annual national budget, against its US$2.6 billion contribution two years ago.

One of many reasons attributed to a success of Cambodia's garment and textile sector is that the country has a large workforce with reasonable costs, Cambodian Trade Minister Cham Prasith said.

The sector has created over 337,000 jobs for locals.

US Congress likely to pass quota-free garment import from Cambodia

US Congress likely to pass quota-free RMG access bill: Congressman McDermott tells BGMEA delegation

Staff Reporter
The New Nation (Bengladesh)

American Congressman Jim McDermott (D-WA) has expressed optimism about the passage of a new trade bill in the US Congress, allowing better market access of readymade garments from Bangladesh and other LDCs to the US market.

He expressed the hope welcoming a delegation from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by its President Anwar-Ul-Alam Chowdhury, at a meeting at the Capitol Hill in Washington on Tuesday, according to a message received here yesterday.

Bangladesh Ambassador to the United States Humayun Kabir and several representatives of the BGMEA were present at the meeting.

Jim McDermott (D-WA) on October 18 introduced the "New Partnership for Development Act (NPDA) of 2007 Bill" in the US House of Representatives.

Bangladesh, Cambodia and other LDCs from Asia will be able to increase their apparel export to the US market if the bill is passed by the House of Representatives and the Senate, and approved by the US President.

If the bill is passed, Bangladesh is expected to be able to increase its apparel export by 18 per cent to the US market alone.

The bill was co-sponsored by nine Congressmen--Joseph Crowley, Phil English, Kendrick, Meek, Diane Watson, Jerry Weller, Earl Blumenauer, Adam Smith and Dan Burton.

Jim McDermott apprised the BGMEA delegation that there were a number of trade-related bills in the Congress for consideration and NPDA might be sequenced in following the passage of those bills.

"The New Partnership for Development Act of 2007 Bill" is likely to come to the committee concerned of the US Congress at any time. We have been lobbying in this regard. We hope that the members of the Congress would support the bill so that it could be passed," he said,

Congressman McDermott, however, requested the delegation to continue to improve their compliance credentials so that concerns in some quarters in the USA could be addressed.

"Bangladesh will have to comply with the international labour laws and address the internal environment in the garment factories," he said.

The Congressman also appreciated Bangladesh's achievement in the field of women empowerment and gender parity in education.

BGMEA president Anwar-Ul-Alam Chowdhury thanked the Congressman for his cooperation in alleviating poverty in the developing world.

Bangladesh Ambassador to the USA Humayun Kabir, who accompanied the delegation, appreciated the Congressman for his leadership and hoped that this will help uplift the conditions of hardworking people in Bangladesh and in the developing world.

The delegation had also meetings with Congressmen Ron Lewis, John Conyers, Adam Smith and Keith Ellison. The delegation apprised them of the latest situation in the RMG industry of Bangladesh and called for their support for the expeditious passage of the bill.

The delegation had a series of meetings with advisers, counselors and legislative assistants of several influential Congressmen and Senators.

Cambodia's garment export increases 12 pct in first half of 2007

September 27, 2007

The total export of Cambodia's garment products increased by 12 percent in the first half of this year, senior officials said on Wednesday.

The export is up 12 percent in the first six month of this year compared with the same period last year because it had good labor standard and the international buyers continued to buy garment products from Cambodia, Cham Prasidh, minister of Commerce, told the Cambodia Buyers Forum Wednesday.

Cambodia stands the fifth largest garment products exporter in the world with competitive partners from China, Vietnam, Bangladesh and Indonesia, he said.

"The garment industry employs over 330,000 workers. More than 80 percent of the workers are poor rural women whose earnings are crucial to their families," Chairman for Garment Manufacturers Association of Cambodia (GMAC) said, adding that the garment industry provides livelihood for at least 1.7 million people in Cambodia.

The cost of exporting a container of garment products is still high in Cambodia and it takes many days for legal procedures, he said.

In Vietnam, the price is about 300 U.S. dollars per container and it takes one day for legal procedures, he said, adding that in Cambodia, the price is 700 or 800 U.S. dollars and it takes three days.

The two-day forum is organized by International Finance Corporation (IFC) of the World Bank, Mekong Private sector Development Facility (MPDF) and International Labor Organization ( ILO), which aims to support Cambodia's garment industry, ensure it maintains good labor standard and also promote Cambodia to new buyers in the world.

Source: Xinhua