Logo of Phnom Penh Post newspaper Phnom Penh Post - Garment sector development strategy launched

Garment sector development strategy launched

Content image - Phnom Penh Post
The garment workers leave from a factory in Phnom Penh. Hong Menea

Garment sector development strategy launched

The Ministry of Economy and Finance has officially launched the “Cambodia Garment, Footwear and Travel Goods [GTF] Sector Development Strategy 2022-2027”, with which it hopes to set common development goals, establish independence and develop the sustainability and inclusiveness of the sector.

At the meeting introducing and formally implementing the strategy, finance ministry secretary of state Phan Phalla said that the overarching vision for this strategy was to “develop the GTF sector in Cambodia to become environmentally sustainable, resilient, focused on high-value products, unique and highly competitive, as well as a basis to support economic diversification in Cambodia by 2027”.

The ministry will launch five strategic measures to achieve the vision, he said. This includes further strengthening human resource capabilities to increase productivity and create viable career paths for workers, continuing to improve working conditions and worker welfare, improving domestic and foreign investment with a focus on being high value-added and on high-end products, and promote market diversification in sector exports.

Minister of Commerce Pan Sorasak said that this strategy will contribute significantly to the economic recovery of the Kingdom and complements the “new normal” economic recovery strategy being implemented in the 2021-2023 period.

“The Ministry [of Commerce] is ready to work together to implement this strategy effectively to spur domestic investment and enhance the GTF sector in Cambodia, which will enable it to add more value in the regional price chain,” he said.

Minister of Labour and Vocational Training Ith Sam Heng said that this policy document will be a roadmap in “defining a common vision, objectives, goals and strategic plans to manage and strengthen this sector in a ‘Cambodian context’”.

“This strategy will enable Cambodia to seize opportunities as well as respond to the rapid changes in regional and global architecture, aiming to transform the sector into an industry that is environmentally sustainable, resilient and high value-added,” he said.

Minister of Economy and Finance Aun Pornmoniroth noted that this is the first strategy that “spurs the growth of the garment sector both in the short and medium-to-long term”.

During that period, “the garment sector will continue to be a potential economic mainstay by expanding and strengthening local industrial bases for exports, and improve on the regional and global value chain”, he said.

Garment Manufacturers Association in Cambodia (GMAC) chairman Kong Sang said that improving trade facilitation through international trade channels and reducing logistics costs are “indispensable factors” with which business costs could be reduced.

Cambodia’s logistic cost is higher than many countries in the region, according to Sang.

Logistics costs are divided into trucking and clearance costs, the latter of which consists of often exorbitant and untraceable fees, including payment to the shipping company, the port as well as an official customs fee.

“While trucking costs are mostly affordable and acceptable, the clearance cost fee is unmatched, and almost half of them do not have supporting invoices,” Sang said. “This is an important issue that needs to be addressed in the short-term action plan.”

He added that energy prices and the lack of use of renewable energy remain major challenges, with rates still high compared to other countries in the region.

The private sector has considered the option of using solar energy, but it still does not offer cost effectiveness due to the high capacity charge, and is not yet seen as an attractive option for companies in Cambodia.

“Having the development strategy documents and the implementation of this strategy is a good starting point, but for this strategy to be successful, it requires the willing participation of the relevant ministries and institutions in effective implementation under the inter-institutional mechanism led by the Economic and Financial Policy Committee,” Sang said.

MOST VIEWED

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Newest horror film showcases unique Khmer culture, identity

    At first glance, the trailer to new horror sensation The Ritual: Black Nun looks like a western-produced feature film. As the story reveals itself to the viewers, it becomes clearer that this is a Khmer film, with a strong Cambodian identity and close links to

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one

  • Water supply authority assures public shortages over early ‘24

    The Phnom Penh Water Supply Authority (PPWSA) asked for understanding from Phnom Penh residents in some communes where water pressure is weak. They assured residents that all supply issues will be resolved by early 2024, but have suggested that residents use water sparingly in the meantime.

  • Khmer ballet documentary debuts April 1

    A new documentary, The Perfect Motion, or Tep Hattha in Khmer, will premiere to the public on April 1. The documentary film follows two intertwined storylines: the creation of a show called Metamorphosis by the late Princess Norodom Buppha Devi (her very last production) and the