A new association was launched on Saturday to boost the Kingdom’s garment industry, one of the most important engines of economic growth in the country.
China Textile Association in Cambodia (CTAC) will provide legal advice to investors and those considering to invest as well as liaise with the government, public officials said at the event.
CTAC’s services will particularly target Chinese investors.
Speaking at CTAC’s launch on Saturday, Minister of Industry and Handicrafts Cham Prasidh said the association will be an important partner to the government in lifting the garment and textile industry.
“We hope that the association will help attract investment in garments and related industries. We are ready to help and facilitate your investment in Cambodia,” he told attendees at the event.
Cambodia has 663 factories. Of these, 520 manufacture garments, while 83 make footwear. The rest produce bags. The industry employs about 800,000 Cambodians, 80 percent of whom are women, according to the Ministry of Industry and Handicrafts.
A report last year from the National Bank of Cambodia showed that Cambodia’s garments and footwear exports were valued at $10 billion, up 24 percent from 2017’s $8 billion. The majority of buyers are in the European Union and the United States.
At last week’s event, Minister Prasidh urged investors to consider exporting to new markets, including Canada, New Zealand, Australia, Japan, and Korea.
According to the minister, Cambodia has the fifth-highest garment sector minimum wage in Asean. Cambodia’s minimum wage for the garment sector is $182 per month but it will be raised to $190 next year.
Research by Dezan Shira & Associates shows that the garment industry is essentially dominated by foreign companies, particularly from China, Hong Kong, Singapore, Malaysia, and South Korea.
“In regard to foreign-owned garments firms or brand names, these have benefited Cambodia’s industry and created important channels into the global value chain,” it said.
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