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Prospects for the Textile and Garment Industry in Cambodia
Textiles Intelligence, April 2008, Pages: 29


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Cambodia’s garment industry has evolved from nowhere in the mid- 1990s to become the country’s most important manufacturing sector. This meteoric rise has been aided by more settled political and social conditions following the horrors of the Khmer Rouge regime and by the adoption of an open market economy.

In particular, the government has provided strong encouragement for foreign investors through a series of generous incentives, while exports have benefited from preferential access to the all-important markets of the USA and the EU.

As a result, garment manufacturing now accounts for around 14% of the country’s GDP and for 82% of exports, as well as employing 45% of its manufacturing workforce.

This momentum appears set to continue, although there are a number of serious impediments to overcome. The sector is uncomfortably dependent on imported raw materials for its production. Also, the country’s infrastructure requires huge investment in power generation and transport.

There is a need also for the sector to utilise more high-tech manufacturing equipment rather than depending on low cost labour as a means of retaining international competitiveness. The industry would benefit too if more value adding processes such as design and marketing came under domestic control.

On balance, though, the dynamism and vibrancy which have characterised the garment industry’s recent development look set to continue.



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