Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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Nearly 200 Factories in Cambodia Face Shutdown due to Lacks of Raw Materials
27/02/20 14:53
Phnom Penh (FN), Feb. 27 – Heng Sour, spokesperson of the Ministry of Labor and Vocational Training, said that by March 2020, around 200 factories in Phnom Penh face shutdown due to lacks of raw materials imported from China amid Covid-19 outbreak, speaking at the press conference held at the Council of Ministers on Thursday.

Heng Sour said the closure of 200 factories would leave 160,000 workers unemployed.

He continued that as of 27 February, 10 factories have requested submits for partial suspension that would affect approximately 3,000 workers.

"Covid-19 has significantly affected the global productivity and supply chain world, especially in Asia. Japan and Korea have already suspended some of their productions due to a lack of semi-finished or finished products from China,” said Heng Sour.
=FRESH NEWS
Last edited by CEOCambodiaNews on Thu Feb 27, 2020 3:11 pm, edited 1 time in total.
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

Post by Doc67 »

How long before the food chain gets disrupted? Quite a lot comes from China and I don't suppose getting their lettuces from there to here will be a high priority given they are about 3 weeks behind on all the big and high value stuff.

Things can only get worse....
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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China prioritises supplying raw garment materials to Cambodia
An official of the Chinese Chamber of Commerce has revealed that China may prioritise fulfilling Cambodia’s immediate demand for raw materials to enable local factories to continue operating, Khmer Times reported.
VNA Monday, March 02, 2020 14:21

Phnom Penh (VNA) – An official of the Chinese Chamber of Commerce has revealed that China may prioritise fulfilling Cambodia’s immediate demand for raw materials to enable local factories to continue operating, Khmer Times reported.

Thousands of jobs are at risk and factories announced suspension in Cambodia because of a lack of raw materials caused by the spread of the novel coronavirus (SARS-CoV-2).

Officials have estimated that up to 30,000 Cambodian garment workers may face job losses if the supply situation doesn’t improve rapidly this month.

The Chinese official said China is ramping up day-and-night production in all sectors and will do its best to supply the raw materials Cambodia needs to avoid job losses and factory suspension.

On February 26, Cambodian Prime Minister HE urged Chinese Ambassador Wang Wentian to look into the possibility of exporting raw materials by air and sea to the Southeast Asian country in order to prevent job losses resulting from a suspension in the operation of garment factories.

The Garment Manufacturer’s Association of Cambodia said last month that more than 60 percent of raw materials used in garment and textile factories are imported from China, with many suppliers temporarily halting production and affecting factories in the country.

According to Cambodia’s Ministry of Labour and Vocational Training, about 7,000 workers will face lay-offs if the delivery does not resume. If the shortage drags on, about 90,000 workers will be suspended at the end of March.
https://en.vietnamplus.vn/china-priorit ... 169464.vnp
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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Coronavirus blamed for unpaid wages.

March 2, 2020
Garment workers end three-day strike over unpaid wages

A representative of the SEPIA garment factory in Por Senchey district’s Kakab commune yesterday welcomed the return of its workers amid incurring financial problems that led to the late payment of wages and bonuses to their employees.

SEPIA chief of administration Kong Sambath said the Chinese-owned factory has more than 600 workers with nearly half of them holding a three-day strike from February 26-28 to demand the month’s wages.

He said on February 29, the workers decided to report to work. He expressed hope they would continue working as usual while the factory deals with its financial problems.

Explaining the delay, Mr Sambath said the bank in China which the factory is affiliated with had been closed for some time due to the COVID-19 global pandemic.

“The factory finds it difficult to withdraw money from the bank in China due to its temporary closure but we are trying to find a solution to pay for the workers’ wages,” he said. “We don’t want to see the workers out of jobs so we are trying to find the financial resources needed to keep supporting their livelihood.”
https://www.khmertimeskh.com/50696934/g ... paid-wages
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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March 12, 2020
12 more Chinese ships carrying garment raw materials to arrive in Cambodia this week
The Garment Manufacturers Association in Cambodia (GMAC) said on Wednesday that 12 more Chinese ships transporting raw materials for garment industry will arrive in Cambodia this week.

In a statement, GMAC said the first shipment of raw materials for the garment sector arrived at the Sihanoukville Autonomous Port in southwest Cambodia’s Preah Sihanouk province Monday night.

“We expect that 12 ships with more raw materials will arrive at the Sihanoukville Autonomous Port subsequently until Sunday,” it said.

The statement added that the “Green Lane” measure taken by the Ministry of Economy and Finance through the General Department of Customs and Excise has immediately helped facilitate clearance formalities and procedures from the port, and the raw materials have been transported to factories in various areas including Phnom Penh.

Cambodian Prime Minister Samdech Techo HE said on Tuesday that more than 60 percent of the raw materials for production in the garment and footwear industry in Cambodia are imported from China.

“The vessels will deliver raw materials to Cambodia from this March to May until the situation (of COVID-19) has eased,” he said.
https://www.khmertimeskh.com/50700937/1 ... -this-week
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

Post by Duncan »

It's good to have friends when you need them. Those bloody yanks and Euros wouldn't help us Cambodians would they.
Cambodia,,,, Don't fall in love with her.
Like the spoilt child she is, she will not be happy till she destroys herself from within and breaks your heart.
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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March 12, 2020
Hundreds protest after factory owner fled company

Nearly 800 textile factory workers in Kampong Speu province yesterday protested because their employer allegedly fled after failing to pay all wages and severance payments.

Prum Tola, a worker for New Best Global Textile, said the company suspended production on February 11, and it has not paid workers eight days worth of wages, severance and other bonuses.

“The company still has not paid some wages and bonuses of workers,” Ms Tola said. “That is why we are asking the authorities to intervene.”

Dos Bern, another worker, said the company promised to resume operations on March 11, but production did not restart.

“When we arrived at the factory, doors were closed and no one was working,” Ms Bern said. “The company has not paid our wages and bonuses.”

“No one is here to respond to our missing wages and bonuses,” she added.

Che Sa, chief of the company’s administration department, yesterday said she does not know why the company suspended operations.

“Since the company suspended operations, the employer has not appeared nor could he be contacted,” Ms Sa said. “Company staffers in the office are suffering too as they have not gotten their wages and other bonuses as well.”

Choek Borin, chief of the provincial labour department, said yesterday the building owner will have to compensate the workers over missing wages and bonuses.

“The employer fled. However, the owner of the building will have to appear to find a solution,” Mr Borin said.

Last week more than 800 workers for Crystal Martin Cambodia Limited in Kandal province’s Ksach Kandal district protested after the company suspended their employment.

According to the Labour Ministry last week, many factories in the Kingdom are affected by the COVID-19 outbreak in China.
https://www.khmertimeskh.com/50700784/h ... ed-company
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

Post by CEOCambodiaNews »

Silence of the cranes
Sangeetha Amarthalingam | Publication date 12 March 2020 | 22:46 ICT
The whirring of cranes on construction sites on Monivong and HE boulevards have quietened down a little, and at times totally disrupted in the past month, since Covid-19 engulfed China.

Over at the expansive courtyard of $2 billion R&F City, the only completed zone of the project, which houses its sales gallery in a large reception, human activity was minimal too.

Work at its construction site that surrounded the courtyard ploughed on silently as a handful of workers shuffled in and out of openings in the scaffoldings.

But the scene rendered no insight into a busy, dusty building site.

“Construction activity has reduced between 10 per cent and 20 per cent since early January,” said a Chinese staff who was seen measuring the pavement outside R&F City on HE Boulevard.

The dip in their workflow is allegedly related to the low quantities of construction materials and equipment imports, as well as the absence of Chinese workers, who are subject to travel restrictions imposed by China after the Chinese New Year celebration – near the height of the Covid-19 outbreak.

“Some of the construction materials are from Hubei province [the Covid-19 epicentre] where Wuhan is located. Therefore, we are facing difficulties importing them,” said another staff.
https://www.phnompenhpost.com/special-r ... nce-cranes
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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March 16, 2020
1,000 containers with raw material offer relief to Kingdom’s factories

Prime Minister HE on Saturday announced the arrival of 12 ships containing more than 1,000 containers of raw materials from China at Sihanoukville Autonomous Port to supply struggling garment factories in the Kingdom.

Speaking with officials at Battambang province’s Battambang city, the premier said China has helped facilitate the transport of raw materials to Cambodia amid the COVID-19 pandemic which has resulted in a raw materials crunch in the Kingdom.

The shortage saw thousands of garment factory workers being suspended as factories struggled to continue operations.

Last week, Mr HE urged banks and MFIs to delay collection of interest payment from the suspended workers. He also called on water and electricity suppliers to delay collection of utility payments to ease the financial burden of the workers.

Labour Ministry spokesman Heng Sour told Khmer Times yesterday all raw materials which arrived in the Kingdom will help alleviate production setbacks encountered by factories which have yet to cease operations.
https://www.khmertimeskh.com/50702057/1 ... factories/
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

Post by Phnom Poon »

with factories slow and schools closed until KNY
i think a lot of people will just back to the province for an extended holiday

.

monstra mihi bona!
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