Infrastructure, raw materials important for Cambodia’s textile

By Phy • June 24th, 2008

High-tech manufacturing equipment and ability to produce its own raw materials are essential to make Cambodia a more competitive garment producer in the world market, according to a $395 report by Research And Market.

The excerpt from the “Prospects for the Textile and Garment Industry in Cambodia” mentioned that the country’s garment Industry has evolved to become the country’s most important manufacturing sector, accounting for around 14% of the country’s GDP and for 82% of exports and employing 45% of its manufacturing workforce.

It should also be noted that while “Cambodia tops Chinese textile firms’ overseas investment list,” the industry is now short of workers. The reasons for the shortage include, but not limited to, the following: low salary, expansion of other industries like tourism and especially that of the sector itself, The Phnom Penh Post wrote in its Jun 12 news article on Garment sector falling victim to its own success. (See also Labor Shortages in Cambodia’s Garment Industry, ABC Radio Australia June 18, 08; Garment factories face labor shortage as workers quit, The Mekong Times June 24, 08)

Whether or not improved labor standards due partly to the Arbitration Council and a number of the ILO’s projects like Better Factories Cambodia and Labor Dispute Resolution Project has contributed to the growth in the sector, was not mentioned.

Comments(6) Facts & Figures, Labor Blawg, My Thoughts, News Review

Comments

By Yaneth on June 26th, 2008 at 12:18 am

Hi Phy, thanks for the post. You always keep an eye on labor issues in Cambodia, which is useful for me coz’ I can catch up with the issue through you. Hey, in my research proposal, I include ‘arbitration council’ as one of the factors improving compliance with labour standards in Cambodia. However, i think there is no study putting emphasis on this factor yet. Therefore, it is pretty hard for me to find justification for it.

To your knowledge, do you think to what extent the arbitration council plays role in this success?

I am also looking for background information on roles and impacts of the labor arbitration in Cambodia. Thus, if you have, please share with me ne!

Regarding this, your research and my research share similarity, so we can cooperate if you like.

By Phy on June 26th, 2008 at 4:50 pm

@Yaneth: To prove the Arbitration Council (AC) has improved compliance with labor standards in Cambodia may not be too difficult. The AC Foundation has data as to how successful the AC arbitral awards are, which i think we can use to make our analysis.

Well, i’m more than happy to cooperate with you, Yaneth. Let’s keep each other posted about anything important to our study, ok!

By Yaneth on June 27th, 2008 at 12:33 am

Thanks Phy. I think for the case of Cambodia, maybe we can use the data from AC ’s website. However, I also want to read something regarding the roles and advantages of AC in general. I think you have read some articles or book related to it. I don’t know if you can let me have a look on some of them. I think they may be of some uses for me.

By Phy on June 27th, 2008 at 3:48 am

Yaneth, it looks like you wanna know the roles and advantages of arbitration in general. If so, of course i got some books and maybe journal articles i think you can use. I’m writing about that as part of my report too. I can send it to you when i’m done.

By Yaneth on July 3rd, 2008 at 10:48 pm

Thanks a lot na. I am waiting for it. Don’t forget, ok?

By Phy on July 8th, 2008 at 11:43 pm

Of course not, Yaneth.