Azazie makes its dresses at 50 factories across China but has moved some of its production to Cambodia and Vietnam in recent weeks. PUBLIC DOMAIN
San jose, California-based online fashion bridal party platform Azazie Inc has shifted its manufacturing base out of China to Cambodia in an effort to escape the Covid-19 shutdown, The Washington Post reported.
The Cambodia Chamber of Commerce (CCC) welcomed the move, noting the government’s effort to attract more foreign investors.
Cambodia and a number of Asean countries are currently reaping the benefits of a production shift out of China in the heat of the Sino-US trade war.
Azazie marketing head Ranu Coleman told The Washington Post on Thursday that Azazie makes its dresses at 50 factories across China but has moved some of its production to Cambodia and Vietnam in recent weeks.
“I’m going to be honest – it is impacting us. So much of the wedding market requires skillful handwork, and it’s really hard to find that outside of China,” said Coleman.
Many Chinese workers have continued to pitch in despite factory closures by doing handwork and beading from home, she said.
The ongoing health scare threatens global economic growth. Companies in China are reducing production or temporarily closing to curb the spread of the virus.
Last week, Apple Inc warned that it expects to fall short of revenue goals in the current quarter because of stalled iPhone production in China and lower demand from Chinese consumers, it said in a report.
CCC vice-president Lim Heng said the move is in line with the government’s commitment to attract more foreign investors as the Kingdom partially loses its access to the EU’s Everything But Arms preferential trade scheme.
“This is good news. I think we are moving in the right direction as a number of Cambodian products can be exported to the US tariff-free under its Generalised System of Preferences,” he said.
The latest data from the US trade office showed the Kingdom’s exports to the US skyrocketed last year to some $5.362 billion compared to $3.818 billion in 2018, an increase or more than 40 per cent.
Imports from the US reached some $513.4 million, up more than 15 per cent from 2018’s $445.8 million.
The US remains Cambodia’s largest trading partner and export market, whereas the Kingdom is currently the US’ 66th largest trading partner.
However, Covid-19 will remain a challenge the Kingdom’s economic growth this year. More garment factories are expected to close next month due to a lack of raw material supply from China as factories continue to shut down over the virus.
