PHNOM PENH: 150 garment and footwear factories in Cambodia have shut down this year, while more than 50 new ones opened, local media reported on Monday, citing a report of the Commerce Ministry.
A total of 982 garment factories and 90 footwear manufacturers have been registered with the ministry. Of these, 130 apparel factories and 14 footwear factories shut down this year, according to ministry figures.
Ho Sivyong, director of the ministry’s import and export department, said though more factories closed than opened, he was optimistic that the production would increase next year.
Some global brands had promised to buy more products from Cambodian factories, he said.
However, Sivyong said strikes for higher wages were deterring new investment, and a shift in production to Myanmar was underway.
“Demonstrations and demands for higher wages from workers are a challenge for investors considering investing in Cambodia,” he said, quoted by the English-language newspaper.
Some companies that had shut factories here have shifted production to Myanmar, he added.
Sivyong noted that like Cambodia, Myanmar has duty- and quota-free access to the European market under its Everything But Arms trade deal tailored to the specific needs of least developed countries.
