(Photo: DR, Cambodge Soir Hebdo)20 Jan 2009
By Ky Soklim
Cambodge Soir Hebdo
Translated from Khmer by Luc Sâr
Click here to read the article in French
Factory closures, financial problems, these are some of the concerns faced the GMAC boss.
The President Garment Manufacturers Association of Cambodia (GMAC) is worried, Van Sou Ieng told unions and government representatives during a crisis summit held on Tuesday 20 January.
In 2008, textile exports rose only by 1 to 2% as opposed to 10 to 15% in the years before, and 25,000 factory workers were fired from their jobs.
The beginning of 2009 does not look rosy either. “During the first trimester of 2009, we will surely see a drop in production and other factories will be closing,” Van Sou Ieng predicted.
The culprit? “Buyers are no longer buying, and orders are less than before,” he indicated. Furthermore, buyers also demand a lowering of the cost by about 10% as well. They asked to maintain a credit line for their purchases and this situation leads to a cash flow problem for factories.
Should there be an interruption of orders between April and May, Van Sou Ieng estimated that 50 to 60,000 additional workers will be laid off.
The President Garment Manufacturers Association of Cambodia (GMAC) is worried, Van Sou Ieng told unions and government representatives during a crisis summit held on Tuesday 20 January.
In 2008, textile exports rose only by 1 to 2% as opposed to 10 to 15% in the years before, and 25,000 factory workers were fired from their jobs.
The beginning of 2009 does not look rosy either. “During the first trimester of 2009, we will surely see a drop in production and other factories will be closing,” Van Sou Ieng predicted.
The culprit? “Buyers are no longer buying, and orders are less than before,” he indicated. Furthermore, buyers also demand a lowering of the cost by about 10% as well. They asked to maintain a credit line for their purchases and this situation leads to a cash flow problem for factories.
Should there be an interruption of orders between April and May, Van Sou Ieng estimated that 50 to 60,000 additional workers will be laid off.
