Economic downturn takes its toll
The global economic turmoil has started taking its toll worldwide and has affected developed and developing countries alike.
While Cambodia has a relatively small garment sector, it is the leading export earner and employment generator for the country. However, it appears the textile and apparel sector has been hard hit by the crises.
Many in the country now fear that closures and losses in the export-oriented sector are now inevitable, mainly because of a downturn of orders from the US. Approximately 70% of the country’s garment exports are sent to the US.
It is now feared that around 35 to 40 garment exporting units will close in the next two months. Reports indicate that nearly 20,000 employees have already been laid off and, if these other companies close down, a further 25,000 to 30,000 jobs will be affected.
