Seth Meixner
AFP
Keenly aware of the damage caused by the "sweatshop" label, Cambodia has worked hard for the past eight years creating a niche textile market for socially conscious consumers.
The garment industry, which accounts for 80 percent of the impoverished country's export earnings, continues to thrive, due in part to Cambodia successfully branding itself as one of the region's most labor-friendly manufacturing environments.
"We needed to be competitive, so we needed to be special," Commerce Minister Cham Prasidh said.
"Now Cambodia is well-known ... as a safe haven for international [clothing] brands, free of sweatshops."
Born out of a 1999 agreement with the United States that boosted import quotas in exchange for guarantees on workers' rights, the Better Factories Cambodia program has successfully brought on board the government and manufacturers, as well as international labor advocates.
But even as industry earnings this year look set to eclipse last year's record figures, trouble for this crucial sector could be looming just over the horizon.
The International Labor Organization, which monitors factories, is scaling back its involvement in the program, whose mandate expires next year, the same year general elections could bring to power a less labor- friendly government in Cambodia.
Labor compliance alone does not cement Cambodia's place in world textile markets, and the country must balance green labor practices with the realities of an increasingly competitive industry.
"There are other factors like price, quality and on-time delivery," said Ken Loo, secretary general of the Garment Manufacturers' Association of Cambodia. "We need to continue to improve our competitiveness by reducing corruption and more importantly reducing the overall costs of doing business in Cambodia."
Key to this, according to manufacturers, is reining in the multitude of labor unions that they blame for countless wildcat strikes and, in some cases, factory closures that last year cost some 11,000 jobs.
The garment industry, which accounts for 80 percent of the impoverished country's export earnings, continues to thrive, due in part to Cambodia successfully branding itself as one of the region's most labor-friendly manufacturing environments.
"We needed to be competitive, so we needed to be special," Commerce Minister Cham Prasidh said.
"Now Cambodia is well-known ... as a safe haven for international [clothing] brands, free of sweatshops."
Born out of a 1999 agreement with the United States that boosted import quotas in exchange for guarantees on workers' rights, the Better Factories Cambodia program has successfully brought on board the government and manufacturers, as well as international labor advocates.
But even as industry earnings this year look set to eclipse last year's record figures, trouble for this crucial sector could be looming just over the horizon.
The International Labor Organization, which monitors factories, is scaling back its involvement in the program, whose mandate expires next year, the same year general elections could bring to power a less labor- friendly government in Cambodia.
Labor compliance alone does not cement Cambodia's place in world textile markets, and the country must balance green labor practices with the realities of an increasingly competitive industry.
"There are other factors like price, quality and on-time delivery," said Ken Loo, secretary general of the Garment Manufacturers' Association of Cambodia. "We need to continue to improve our competitiveness by reducing corruption and more importantly reducing the overall costs of doing business in Cambodia."
Key to this, according to manufacturers, is reining in the multitude of labor unions that they blame for countless wildcat strikes and, in some cases, factory closures that last year cost some 11,000 jobs.
2 comments:
Finally Cambodia's garmet factory get recorgnised internationally.Our labor cheap enough but quality came on top.It about time that management has worked hard for.Still we can be competitive when we can stop fat cats(corruption) out of system.You never be rich enough but the poors need more for their hunger.
If Cambodia want to develop her economy, Cambodian Government must stay out from all businesses activities. The Government must have a laws banning all government officials and their spouses to run any business actvities. This kind of activities will be conflicted of interest which are not fair to business community. The Government must a strict rule concerning government officials who have soliciting business people for a kick a kick back or for any favorable transaction. This kind of rules are very important to attrack investors from foreign countries which are used with this kind of environment. At present, Hun sen has controled almost every business from retailing, massage parlour, motodup to real eastate etc... and etc... With this kind of controles who want to waste their times to explore Cambodia. The recent problem of Long Chhin resort has taught business people a lot of how to dealt with Hun sen.
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