Prime Minister: Some Countries May Lure Garment Factories from Cambodia

AKP Phnom Penh, June 28, 2018 —Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, has shared some concerns over the garment, textile and footwear industry.

While meeting with more than 21,000 workers and employees from 14 factories and enterprises in Samaky Meanchey district, Kampong Chhnang province this morning, Samdech Techo Hun Sen said the Royal Government of Cambodia has been working hard to spread factories across the nation, but Cambodia still faces some challenges.

According to the Premier, some countries such as Bangladesh, Sri Lanka, India, Myanmar, Indonesia, Vietnam, Lao PDR, and Pakistan can lure garment, textile and footwear factories from Cambodia because they have more labor force and the monthly minimum wage of their workers is much lower than that in Cambodia.

The monthly minimum wage of workers in Bangladesh and Sri Lanka is only US$67, in India from US$77 to US$143, US$108 in Myanmar, US$107 in some parts of Indonesia, US$122 in some parts of Vietnam, and around US$130 in Lao PDR and Pakistan, he added.

In 1997, Cambodia had only 64 factories, employing 82,000 workers with the monthly minimum wage of around US$40, but now the number of factories rose to 1,154 employing 776,502 workers with the minimum wage of US$170 per month, without counting other incentives and the new social welfare promotion programme released recently by the Royal Government of Cambodia, including free medical care, financial aid package for each baby delivery and so on.

Cambodia’s garment, textile and footwear industry generates about US$2 billion annually.

By Khan Sophirom