ASEAN

China to help Cambodia's garment industry

THE raw materials crunch faced by the garment industry in Cambodia is expected to be alleviated with the arrival of more than 200 containers from China.

The shipments are projected to fill the shortage in raw materials that has paralysed production for hundreds of garment factories.

However, the Garment Manufacturers Association in Cambodia (GMAC) said these materials might not be enough to meet garment factory demands.

General Department of Customs and Excise director general Kun Nhim said a Chinese ship arrived at Cambodia’s port on March 8 with 212 containers. Of these, 102 carried raw materials for garments. A second ship has also arrived while three more ships will arrive soon.

“Although we have yet to know their exact arrival schedule. We will coordinate with authorities, so the containers are quickly transported from the port in order to support our factories.”

The Khmer Times reported Prime Minister Hun Sen earlier as saying that seven ships loaded with raw materials from China were set to arrive to help alleviate production setbacks in the country amid the Covid-19 outbreak.

He said the shipment of materials would last until May, by which time, he expressed hope of seeing Covid-19 fears abate and the operations of the affected garment factories to resume.

The association last month said more than 60 per cent of raw materials used in Cambodian factories were imported from China.

Due to the shortage, government officials have estimated up to 30,000 garment factory workers could lose their jobs this month if the situation does not improve.

GMAC secretary-general Ken Loo, who welcomed the arrival of the shipments, said they would not be enough to fill the shortage.

“Under normal circumstances, we need 2,000 containers of raw materials to produce 1,000 containers of final products weekly.

“Now, we only have hundreds of containers, which will not be enough to meet the production quota. Nevertheless, we are grateful for the support even though it is less than what we normally require.”

He added that once the situation in China normalised, all raw materials would arrive as ordered.

“The factories had already ordered the raw materials before news of the Covid-19 came out but everything was delayed due to the outbreak. So, I hope the situation goes back to normal soon. However, we would still have to wait in queue along with other countries who have ordered raw materials from China.”

Coalition of Cambodian Apparel Workers’ Democratic Union president Ath Thorn also lauded the shipment arrival saying that it would resume operations of the affected factories.

“The situation will improve once the materials arrive as it will help the struggling factories to resume operations.”

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