Apparel Online India Magazine March 1st Issue 2019 | Page 26

CAMBODIA
Garment industry
of the future
T
he apparel industry is the largest employer in
Cambodia. In 2018, its apparel export was 73 per cent
of the total export and witnessed a growth of 25 per cent.
One of the major strengths of the apparel industry here
is the high level of foreign investment, which is around
90 per cent. It has 15 investment agreements including
ASEAN-EU, ASEAN-China agreements; similarly it also
has bilateral investment treaties with 24 countries, out of
which 12 are in force including China, India and Japan.
Top 10 exporters of this country employ more than 50,000
workers, which is more than 70 per cent of the total
garment industry of Cambodia.
Currently out of the total import of babieswear by US
and EU, Cambodia has share of around 15.42 per cent
(quantity-wise). While in trousers, it has 10.34 per
cent contribution and in sweaters, it is around 8.60
per cent.
UVR (in Euro, per kg) of babieswear is 17.87, for
trousers is 15.22 and for sweaters is 16.08.
Around 65 per cent garment units in Cambodia are
engaged in the cut, make and trim (CMT) activities and
are dependent on imported fabrics and accessories. The
European Union -- the biggest market for Cambodia
-- recently began a formal procedure to strip Cambodia
of its Everything but Arms (EBA) status due to human
rights violation. The EBA is an initiative aimed at helping
poorer countries. It can be withdrawn in case of serious
violations of human rights conventions. A final decision by
the EU won’t be forthcoming until 2020 and the risk could
lead to textile manufacturers in Cambodia seeking other
bases outside the country and India can be one of them.
The logistics support of the country is improving
gradually. Sihanoukville Autonomous Port or Port
Autonome de Sihanoukville (PAS) is 180 km away from
Phnom Penh and Phnom Penh Autonomous Port (PPAP).
PPAP is near to Phnom Penh, and both are the two
biggest ports in Cambodia, which are also state-owned.
The country has announced that it would start the
construction of a new container terminal at each port this
year. New container terminal, with a length of 350 metres
and a depth of 14.5 metres, will be built at PAS at an
investment of US $ 203 million and the other one will be
constructed at PPAP.
Top Groups: Tak Fook Garment Limited, Makalot
Garments Co. Limited, Goldfame Enterprises
International Knitters Limited, You Li International
Garment Co. Limited.
Major Production Hubs: Phnom Penh, the capital of
Cambodia, has maximum production facilities, while
Kandal, Kampong Speu, Preah Sihanouk and Takeo also
have garment factories.
Major Clients: H&M, GAP, Adidas, Puma, Inditex, Next
26 Apparel Online India | MARCH 1-15, 2019 | www.apparelresources.com
M YA N M A R
Aiming high
though problems
persist
M
yanmar exported US $ 2.7 billion of garments
in 2017, and by 2020, it is projected to touch US
$ 10 billion. After the EU, Japan and South Korea are
the biggest markets for Myanmar, while the US is at the
fourth number. With Japan being the second top market
for Myanmar, it shows the quality manufacturing strength
of the country.
Shirts, trousers, formal suits, jackets, capes and
wind jackets are its product strengths, which can
be an added advantage for India.
UVR (in Euro, per kg) of sweaters is 14, for shirts is
19.44, for trousers is 14.36.
Myanmar Investment Commission (MIC) allows 100
per cent Foreign Direct Investment (FDI) for setting
up garment factories in the country and massive
interest for the same has been shown by the Chinese
and Hong Kong factories in the form of relocations and
investments. Myanmar, the world’s least developed
country, benefits from the most favourable regime
available under the EU’s generalised scheme of
preferences (GSP). Being a member of ASEAN, the
country is actively included in discussions on trade
and investment issues. The US has re-established the
USAID mission, thereby easing economic sanctions
for the country. Myanmar has also requested the EU
to reconsider the potential move to withdraw its GSP
benefits as the EU is planning to withdraw because of
alleged human right violations against ethnic people
in Myanmar. ASEAN Free Trade Area (AFTA), ASEAN
Japan Comprehensive Economic Partnership (AJCEP),
ASEAN Korea FTA, ASEAN Australia New Zealand FTA
(AANZFTA), ASEAN China, ASEAN India are also in
favour of the country.
Top Groups: Mingalar Sumbiri Garment Co. Limited,
Natural Garment Manufacturing Co. Limited, Myanmar
Huayi Co. Limited, Nadia Pacific Apparel Co. Limited
(South Korea),
Major Production Hubs: Yangon, Thilawa, Pathein
and Bago.
Major Clients: GAP, H&M, Marks & Spencer, Primark
and N Brown Group
“We are strong in labour availability, lower labour cost
and GSP status but see a huge lack of skilled labour,
fluctuating exchange rate, poor infrastructure. Currently,
Myanmar’s apparel export to India is 5.1 per cent and we
hope it will increase in future,” believes Myanmar Garment
Manufacturers Association