Logo of Phnom Penh Post newspaper Phnom Penh Post - Factories up but new jobs on the decline

Factories up but new jobs on the decline

Factories up but new jobs on the decline

Despite a noticeable increase in the number of factory registrations during the first nine months of the year, new job creation has declined, according to the latest government data.

Figures from the Ministry of Industry and Handicraft released yesterday showed that 149 factories registered during the nine-month period ending September 30. The total represents a 21 per cent increase on the same period last year.

But while it would seem that more factories means more jobs, new job-creation figures released by the ministry at the same time show a decline of about 18 per cent between January and September.

Minister of Industry and Handicraft Cham Prasidh said the new factories were largely expansions of existing operations in Cambodia.

“They [factory owners], don’t want to put all their eggs in the same basket,” he said. “Some factories, when they grow bigger, don’t want to have all their investment in one place. So they divide their operations into smaller factories.”

The government’s report explained that the decreasing number of new jobs was due to those new, smaller factories consolidating their workforce and moving into less labour-intensive operations such as food processing and product assembly.

Cheat Khemera, senior officer of the Garment Manufacturers Association in Cambodia, said that his association receives about five new factory registrations per month.

“There are still new factories coming to invest, but at the same time some factories are also leaving,” he said.

MOST VIEWED

  • Reuters: US Embassy fired 32 staff members for sharing pornography

    The United States Embassy in Phnom Penh has fired 32 non-diplomatic staff members who were allegedly caught exchanging pornographic images and video, including of minors, according to the news agency Reuters. Four sources, who spoke on condition of anonymity, told Reuters the content was shared in

  • Our 2018 guide to spending Khmer New Year in Phnom Penh

    Khmer New Year festivities are upon us. For the next few days, travellers will be making their way to their home provinces to eat, celebrate, play traditional games and visit a pagoda with offerings. If you will be staying put in Phnom Penh for the

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the