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USA and European Union have shown their reluctance in removing the preferential trade access that Cambodia ’ s garment industry enjoys today . This was announced by the BMI unit of Fitch , an international credit rating agency based out of New York City and London , recently .
The rights groups have been calling to impose heavy sanctions on Cambodia ever since the ruling party dissolved the Cambodia National Rescue Party ( CNRP ) last year , which witnessed deterioration in political and civil rights .
However , according to industry insiders , the EU and the USA are refusing any cut to trade preferences as they feel it might badly affect the garment workers .
BMI said that if the USA and the EU do not impose any sanctions , the possibility of factories shutting down and business getting affected is highly unlikely .
It is worth noting that 30 per cent of Cambodia ’ s garments are exported to the EU .
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Owing to garment exports , Cambodia has been growing consistently with a GDP growth rate of 7.6 per cent .
BMI , however , maintained that the country ’ s GDP growth may slow down to 6.4 per cent this year from 6.9 per cent last year . It also said that economic diversification was the only way to combat the threat of increase in wages .
It might be recalled that last year , the Government had increased the minimum wages of workers to US $ 170 ( an 11 per cent hike ).
Though , lately , one has seen a hike in wages in Vietnam too , yet the country with its skilled workforce , political stability and growing economy has managed to race ahead in the global manufacturing race .
Meanwhile , upset over unpaid salaries , workers of a Korean garment factory in Cambodia are organising a protest rally . These workers have reportedly not received their salaries ( of around US $ 180 per month ) since December last year .
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The embattled Gawon factory located in Cambodia ’ s Kandal province ’ s Takhmao fired hundreds of workers in January this year for allegedly not following a court order to resume work despite the dispute being resolved .
A group of workers have taken shelter in the factory premise to keep an eye on the movement of the company so that they cannot get their equipment out of the campus .
The union representative Khem Makara reportedly feels that their employer may take their valuables out of the campus . If the employer succeeds , the workers would not get anything to compensate their unpaid salaries .
The Korean factory has been witnessing frequent protests since last spring over the salary issue , as reported . Any update from factory owner and Ministry of Labour spokesman has not been received on the matter yet .
The workers have decided to apprise Council of Ministers , Ministry of Labour , Garment Manufacturers Association in Cambodia , local authorities , National Social Security Fund and South Korean Embassy in Cambodia by submitting a petition about the situation .
Markedly , the Ministry of Labour earlier this month announced to compensate workers of 4 garment factories in Cambodia after their owners fled .
Notably , Cambodia , home to 1,100 garment and footwear factories , pays higher than Bangladesh , Sri Lanka , India , Myanmar , Indonesia , Laos and Pakistan to its workers .
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VT Group , which has garment manufacturing facilities in Thailand and Myanmar , will make an investment of around BT 10 million to acquire an automation system to manage its garment production processes .
The automation system will be deployed at its manufacturing unit in Bangkok , reportedly said Chalumpon Lotharukpong , Managing Director of VT Group .
With the new system in place , the apparel manufacturer expects a significant improvement in its overall productivity and the quality of products – outerwear , casualwear and sportswear ranging from jackets , functional clothes , ski wear to jogging suits , shorts and vests – that it makes .
However , no information has been traced yet on the company ’ s procurement plans of this automated system .
Markedly , 98 per cent of the products manufactured by VT Group are exported to US , Europe and Japan . Rest of the products are distributed in the domestic market .
The company currently operates three manufacturing facilities including one in Myanmar . The remaining two are located in Bangkok and Maha Sarakham Province . Around 1,82,000 pieces of garment products are produced by the company monthly . In view of the rising demand , it has plans to further invest in its Myanmarbased factory to amplify the production capacity .
The Group , which employs 3,000 staff , aims to be a superlative designer and manufacturer of sportswear and outerwear . It expects to note BT 1.8 billion in revenue this year .
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