Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia’s garments to ship piece by piece

Cambodia’s garments to ship piece by piece

Cambodia’s garments to ship piece by piece

Cambodia's garment manufacturers might sell fabrics from unfinished clothing orders worth millions of dollars to factories offshore in a last-ditch attempt to meet looming buyer deadlines.

The Garment Manufacturers Association in Cambodia (GMAC) issued a letter to the Cambodian government yesterday requesting it to “facilitate” exports of unfinished orders to other countries amid continued garment-worker strike action.

The letter calls on the Ministry of Economy and Finance to clarify and advise factory owners on “re-exporting” procedures.

This means that stockpiles of whole fabric and cut fabric pieces, as well as accessories, semi-finished and unpacked finished products would be shipped out to a buyer’s other manufacturing operations in the region.

“In order to reduce losses, the factories have no choice other than to transfer the orders to their buyer’s partners in other countries,” the letter states.

Ken Loo, secretary general of GMAC, said in a text message that the plan was “to facilitate by simplifying the whole process to allow such re-export”.

Hundreds of garment factories that ceased operations on December 25 due to a mass strike over minimum wages are struggling to find ways to follow through on orders in an industry that ground to a halt last week.

Nam-Shik Kang, managing director of Phnom Penh-based Injae Garment Co, which employs 3,500, said that despite the new plan, he stood to lose out on profits.

“Our factory currently has a full capacity of orders to fill by February, most of it being material equating to about three million garment pieces. We will send to partners in either Indonesia or Vietnam . . . This is a huge quantity and a very big disaster for us and for others,” said Kang, whose South Korean factory supplies Wal-Mart and JC Penny.

“Even if we ship part of our shipment, about one million pieces, we will incur shipping costs of about $200,000 or even $300,000. And it will not even solve the problem.”

An official at the Ministry of Economy and Finance said he was unaware of the letter and declined to comment.

MOST VIEWED

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • China denies Mekong hacking

    As the US and its allies joined hands last week to expose what they allege to be China’s Ministry of State Security’s malicious cyber activities around the world, the attention also turned to Cambodia with the US Department of Justice claiming that four

  • Governor: Covid subsides in capital

    Phnom Penh municipal governor Khuong Sreng said the Covid-19 situation in the capital’s 14 districts has eased, with only two districts still recording a high number of infections. “Transmission cases in all districts are dropping, though they are relatively higher Meanchey and Por Sen Chey.

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided