Rising minimum wage puts pressure on Cambodia's garment export industry

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CEOCambodiaNews
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Rising minimum wage puts pressure on Cambodia's garment export industry

Post by CEOCambodiaNews » Tue Jan 09, 2018 8:35 am

8 January 2018

Garment workers in Cambodia will see their wages increase 11% this year, but this will put further financial pressure on the country’s export sector.

Cambodia’s minimum wage, which has grown 150% in five years, will rise from US$153 to $170 a month, and include the 700,000 workers in the garment industry.

Garments and footwear make up 78% of the country’s exports, according to the General Department of Customs and Excise, rising 7.2% in 2016 to $7.3bn. Most exports are destined for Europe and the US, which respectively account for 45% and 25% of the market.

However, growth is forecast to have slowed to 5% in 2017, according to the Garment Manufacturers Association in Cambodia (GMAC), which warned that the minimum wage increase could mean the country gradually losing its competitive advantage as a low-cost sourcing destination.

The association represents 520 garment and 52 footwear manufacturers in Cambodia – 25 new factories opened last year, while 53 closed, it said.

GMAC deputy secretary-general Kaing Monika told The Phnom Penh Post the wage increase would likely result in the majority of GMAC members struggling to remain profitable. He urged the government to offset the higher salaries by reducing logistics costs.

The association’s proposals include halving the export management fee and reducing the fee levied by the Cambodia Import-Export Inspection and Fraud Repression Directorate-General, known as Camcontrol. Mr Monika said the current Camcontrol inspection fee of $50 per container should be reduced to $15, the same level as the fee levied by the Customs Department...
https://theloadstar.co.uk/rising-minimu ... -industry/
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Cruisemonkey
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Re: Rising minimum wage puts pressure on Cambodia's garment export industry

Post by Cruisemonkey » Tue Jan 09, 2018 8:47 am

Now where will the Chinese get labour to make shit to sell to America?
You could be next.
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Arget
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Re: Rising minimum wage puts pressure on Cambodia's garment export industry

Post by Arget » Tue Jan 09, 2018 8:56 am

No need for sanctions or "colour revolution" to harm the industry just let HE and unions stuff it all by themselves. Greed conquers all.
Better to have a job with smaller wage than no job at all.
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frank lee bent
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Re: Rising minimum wage puts pressure on Cambodia's garment export industry

Post by frank lee bent » Tue Jan 09, 2018 12:01 pm

Now where will the Chinese get labour to make shit to sell to America?
Bangladesh
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Duncan
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Re: Rising minimum wage puts pressure on Cambodia's garment export industry

Post by Duncan » Tue Jan 09, 2018 12:44 pm

I have predicted this months ago, and no mention has been made of the civil servants, the teachers, police and military, etc increases in salary which will give increase spending power in Cambodia , but also a bigger demand for items that are imported cause nothing is produced here. The end result for 2018 will be a big increase in inflation and no-one will be better off in the long run. Look at
and other countries in a crisis situation and you get an idea of where we could be heading.
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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