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Lack Of Regulatory Mechanism For Garment Industry In Kampuchea

2013/5/30 9:28:00 42

Kampuchea Garment Industry Garment Industry Kampuchea

the protection of the rights and interests of garment workers in Kampuchea is a matter of great concern to the industry. 
In the past two years, Kampuchea has attracted more and more foreign businessmen's attention because of its labor costs and preferential treatment for export. P However, due to the lack of regulatory mechanism in garment industry and the frequent strikes of workers, the industry has begun to reconsider the investment environment of the country. 
Less than P, thanks to relatively low labor costs and preferential policies exported to the United States, the export scale of garment industry in Kampuchea has increased substantially in recent two years, and the ability of attracting foreign investment in the industry has also been increasing. In 2012, Kampuchea exported $1 billion 217 million to the EU a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a >, an increase of 32.4% over the same period, ranking ninth in the main garment suppliers of the European Union. In the same year, exports to the United States reached 2 billion 534 million dollars, ranking seventh among the main suppliers. 
According to the Kampuchea Development Council (CDC), in 2011, Kampuchea attracted a total of $205 million of foreign capital to build 45 garment factories, according to P. In 2012, it approved 499 million US dollars to build 82 garment factories in Cambodia, 25 million US dollars to invest in two stockings factories, and 9 million US dollars to invest 4, a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > factories, and 10 million US dollars to invest in two glove factories. Compared to 2011, investment categories were more abundant. Among them, investors are not only from China, but also from Korea, Malaysia and Singapore. It is understood that the French Chamber of Commerce in Kampuchea received three times the cooperation service in 2012, and most of the demand came from the French clothing companies. In February 2013, the British Trade and investment office opened an office in the British Embassy in Phnom Penh to help British companies trade in Kampuchea. In addition, because Kampuchea does not have a perfect textile supply chain, the India Federation of industry and Commerce believes that there is an opportunity for the textile market in Kampuchea. India textile suppliers have more advantages in price competition, which can provide textiles for the Kampuchea garment enterprises below the general market price of 8%~15%. 
 despite the fact that the market competitiveness of "a href=" http://sjfzxm.com/news/index_c.asp > Kampuchea garment industry "/a" has been rising, but the workers' legitimate rights and interests can not be guaranteed and the regulatory mechanism is opaque, the industry's reputation in recent years has declined. At present, many hidden dangers caused by the rapid development of industry have hurt the willingness of retailers and brands to purchase in Kampuchea. According to the insiders, the social responsibility of garment enterprises is mostly in written work, and it does not really care about the rights and interests of workers and the working environment. Most workers have lower education and labor efficiency. In addition, cases of illegal employment of garment factories in Kampuchea abound. In May, another two factories collapsed, killing at least two people. 
The poor public infrastructure and high cost of electricity in Kampuchea are also the factors that affect the entry of foreign capital. In addition, based on the number of factory workers, business owners spend 20 dollars per month on dredging local corrupt officials. In 2001, the International Labour Organization created the Kampuchea better factory project (BFC), which established supervision procedures and authorization to urge Kampuchea's garment factories to raise production standards and comply with the labour law. But in February this year, the report released by the international human rights law school of Stanford University and the union of workers' Rights Union showed that BFC did not solve the problem of workers' rights that had deteriorated continuously in the clothing industry of Kampuchea. According to statistics, a total of 29 garment factories in Kampuchea collapsed in 2012. 
 Ken Loo, Secretary General of Kampuchea Garment Manufacturers Association, suggests that foreign-funded enterprises hold a wait and see attitude. In May 1st, the minimum wage for workers in Kampuchea rose from $61 to $80. Ken Loo believes that the rise in minimum wage and better market access mechanism will make the country attract more investment. "If we did not have so many strikes, we would attract more foreign capital." Ken Loo admits that Burma will be a strong competitor for some time to come. However, Burma needs time to consolidate its industrial advantages. It will take at least 4 years to become a real competitor in Kampuchea.