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Garment industry experts from Cambodia opine, recent surge in exports may not boost profit margins as production costs in the country have increased simultaneously.
Garment industry experts from Cambodia opine, recent surge in exports may not boost profit margins as production costs in the country have increased simultaneously. Data from the Garment Manufacturers Association in Cambodia (GMAC) shows, Cambodia’s exports of textile-related products increased 15.2 per cent to $11.3896 billion in 2021. Garments exports increased to $8.017 billion, footwear shipments surged to $1.390 billion, export of travel goods amounted to $1.490 billion while exports in other categories grew to $0.49 billion.
However, the garment sector’s profit margins failed to grow in tandem with exports, says Kiang Monika, Secretary General, GMAC. The garment industry has invested a lot of money on measures to prevent COVID-19 transmissions. However, surge in logistic costs have dented profit margins. Effective coordination between ministries and sectors can stabilize garment production in Cambodia, adds Kong Sang, Chairman, GMAC.
The Cambodian government has launched several initiatives for the garment sector, says Ith Samheng, Minister of Labor and Vocational Training, Cambodia. These include a comprehensive roadmap titled ‘The Strategic Framework and Program for Economic Recovery in the Context of Living with COVID-19 in a New Normal 2021-2023’.
The government also plans to introduce a 2021-2024 labor sector strategy to boost employment and vocational training for garment workers over year the next three years, adds Samheng. Additionally, the labor ministry has urged the National Employment Agency (NEA) and private recruitment agencies to supply workers to factories and enterprises in order to increase their various production capacities.
The primary voice for garment sector investors in Cambodia, GMAC has established a new forum to discuss various issues impacting Cambodia’s overall investment climate. The association acts as the sole representative of investors in the garment sector and protects their legitimate rights and interests, adds