Logo of Phnom Penh Post newspaper Phnom Penh Post - Honour contracts: Appeal to garment buyers

Honour contracts: Appeal to garment buyers

Content image - Phnom Penh Post
Garment industry workers face an uncertain future as orders dry up. POST STAFF

Honour contracts: Appeal to garment buyers

The Ministry of Commerce on Monday appealed to buyers of the Kingdom’s garment, footwear and travel products to honour all pending purchase agreements.

In an announcement signed by Minister Pan Sorasak, the ministry said Cambodia became the world’s first country to link trade with labour standards.

In 2001, the Kingdom partnered with the International Labour Organisation (ILO) to launch the Better Factories Cambodia project which required all exporting garment factories to be subject to ILO monitoring to ensure compliance with national laws and international labour standards, it said.

“We are proud of this initiative and will continue to ensure that the labour and social rights of our workers are upheld while we rebuild a sustainable supply chain,” it said, noting the reverberating effects of the ongoing health crisis on the global supply chain.

“We appeal to our partners – garment, footwear and travel goods buyers sourcing from Cambodia – to stay committed to Cambodia and especially to our workers.

“We would like you to abide by your contracts and not to cancel orders that have been placed on goods that have already been produced or are currently in production.

“You have contributed to the social development of millions of Cambodians who are depending on these sectors for their livelihood,” it said.

On Friday, the Garment Manufacturers Association in Cambodia (GMAC) along with nine other members of the Sustainable Textile of Asian Region network across six producing and exporting countries made a similar appeal.

They called on global brand companies, retailers and traders to be responsible in their purchasing decisions – to accept goods that have been delivered and to not retract orders or renegotiate their terms.

GMAC secretary-general Ken Loo said all stakeholders in the textile global value chains must come together and help one another to ensure that workers, businesses and the industry survives during these trying times.

He noted that a number of buyers have agreed to keep their orders but have requested extended payment terms such as 90-120 days after delivery.

“We seek your cooperation so that we can all uphold and honour our commitments to labour rights, social responsibilities, and to rebuild a sustainable supply chain. We ask that you honour the terms of the purchasing agreements for the orders that have already been placed.

“Fulfil your obligation and do not renegotiate the payment terms. Receive your goods and proceed with payment as agreed upon, for goods already produced as well as for goods currently in production.

“I am sure that if we all cooperate and work together, we will survive and become stronger. More importantly, our workers will also be able to survive and together we can rebuild our lives, our businesses and the industry,” he said.

Cambodia exported $9.325 billion worth of garment, footwear and travel goods last year, up 11 per cent from 2018, data from the Ministry of Science, Technology and Innovation shows.

As of the end of last year, there were a total of 1,730 factories operating in the Kingdom. Of these, 1,069 are in the garment, textile, footwear and travel goods sectors – of which 823 produced garments and textiles, 114 travel goods and 132 footwear, the data shows.

MOST VIEWED

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped

  • Kingdom, China rebut basis for US sanctions

    The Council for the Development of Cambodia, the Ministry of Foreign Affairs and International Cooperation, and Tianjin Union Investment Development Group Co Ltd (Tianjin) have responded to US sanctions on Union Development Group Co Ltd (UDG), a Chinese-owned company currently developing the sprawling $3.8 billion Dara

  • Influenza breaks out in eight provinces

    Nearly 600 people have been infected with influenza in eight provinces in the past month, Ministry of Health spokesperson Or Vandine said. The ministry is advising extreme caution. A report released by Vandine on Saturday said the Ministry of Health observed transmissions of influenza between August 15

  • ‘Bad news is an investor’s best friend’ – unlocking investment potential in Cambodia

    It is time to shop. Economic woes provide good pickings for investors if they know where to look The poem If, written by English Nobel laureate poet and novelist Rudyard Kipling for his son circa 1895, is widely perceived as fatherly advice for John who would

  • CNRP activist freed; Sam Rainsy pledges return to Kingdom

    The Phnom Penh Municipal Court on Monday released former CNRP activist Oeur Narith on bail after the court ended its questioning on suspicion of receiving money from abroad and plotting to overthrow the government, according to the authorities. National Police spokesman Chhay Kim Khoeun confirmed