Kampuchea Garment Manufacturers Worry About The Competitiveness Of The Garment And Footwear Industry

In Kampuchea

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While the industrial productivity is low, the cost of the owners is rising. The Kampuchea Garment Manufacturers Association (GMAC) is very concerned about the declining competitiveness of the industry.

According to the news of the Kampuchea Garment Manufacturers Association, with the drop in productivity of the garment industry in Kampuchea, labor costs continue to rise, which is likely to force Kampuchea's competitiveness in the clothing and footwear industry to decline. It is difficult to compete with other low-cost countries in the region, such as Vietnam, Bangladesh and Burma.

The International Labour Organization (ILO) released a report in March this year (2016), pointing out that between 2011 and 2014, the productivity of clothing and shoemaking in Kampuchea dropped by about 14%.

The report points out that the main reason for the low productivity of clothing and shoemaking in Kampuchea is that the increase in workload is beyond the increase in productivity.

The clothing industry is one of the most important pillar industries in Kampuchea's economy. The clothing industry is even the lifeblood of the Cambodian economy. At present, the industry employs 800 thousand workers, most of whom are women.

Cambodian manufacturers will estimate that the phenomenon of low productivity of clothing and shoemaking in Kampuchea may last until 2016, or even continue.

Therefore, the chamber of Commerce appealed to the government, trade unions and workers to attach importance to the steady development of the industry and work together to improve the low productivity because it is now in the international arena.

The competitiveness is more and more intense.

Lu Qijian, Secretary General of Cambodia garment manufacturers, said that everyone should take part in the maintenance and support of the development of Kampuchea's clothing and footwear industry, and ensure the competitiveness of Kampuchea's garment industry in the international market.

As a representative of manufacturers, Cambodian garment manufacturers will continuously invest funds to improve their technical standards.

In addition, GMAC and the Ministry of labour and vocational training of Kampuchea have agreed to launch the worker productivity promotion action in the near future.

The main contents of the worker productivity promotion action include: first, improving workers' awareness of productivity in the national, industrial and factory level; two. On-site consultation services are designed to help workers apply the knowledge learned to achieve productivity improvement.

Secretary General Lu Qijian said that many factors are restricting the development of the garment industry in Kampuchea, especially the obstacles to Kampuchea's efforts to increase productivity. These factors include illegal strikes and poor communication among relevant professional institutions.

Therefore, we urge all parties to take the overall situation into consideration and ensure that the Cambodian garment industry continues to develop steadily.

Lu Qijian also said that the clothing industry in Kampuchea is also facing other problems, such as high power cost and high pportation cost.

These factors are the main reasons for forcing some manufacturers to choose other countries.

The canal also indicated that GMAC supports the Kampuchea government's efforts to promote the export of services, but it needs more government fees, especially the reduction of additional payments from manufacturers.

Lu Qijian said that at present, GMAC is actively participating in the rapid development of the Cambodian garment industry, including the establishment of the Kampuchea Garment Industry Training Institute (CGTI) in the Phnom Penh special economic zone.

So far, the construction of the Kampuchea garment industry training institute has been completed by about 70%, and it will play a role of providing training to Kampuchea staff to help them perform intermediate management positions in Cambodia national factories, the canal said.

Cambodia garment industry training institute will enhance the productivity and competitiveness of the Cambodian garment industry and narrow the gap between domestic and foreign technical personnel. It is believed that the opening of the Kampuchea garment industry training institute will enhance the Cambodian domestic garment workers' productivity by raising the standard of Cambodian domestic skilled workers.