A bird's eye view of the Vattanac Industrial Park II in Phnom Penh. Photo: Enric Catala Contreras

ANDREW HAFFNER AND KONG META
AUGUST 10, 2020

..the factory lights are off and the doors locked

His morning routine was simple. First, as his two children slept, he prepared rice and packed his lunch for later at the factory. After making the food, Chhim took a shower, got dressed and, along with his wife, Sem Sovann, made the brief walk to the point where an open-backed truck would pick them up, jostling with crowds of men and women on the route to Gladpeer factory in Por Sen Chey, Phnom Penh. The ride took about nearly an hour to bump the crew to work before the 7am starting-time.

So far this year, according to reporting from mid-July, Cambodia’s total garment exports were worth almost $3.8 billion. Despite the massive decline in demand from overseas, that’s a monetary decline of just about 5.4% from the same point last year. Even still, the decline in exports is a significant loss for an industry that has consistently enjoyed exponential growth in recent years, and has resulted in the evaporation of thousands of manufacturing jobs.

Demand from the West was next, as economies hit the pandemic brick wall. With nobody to sell to, the emperor has been left without a stitch to cover his balance sheet.

While he waited for supplies to come through, costs kept stacking up – about $25,000 each day with no revenue to offset the bleeding. Last year, he and his business partners had begun the process of investing major capital into an expansion of their production capacity. Now, he said, they’ve been forced to sell off four of the factories, while the remaining five have been suspended since May.

Before, the couple had been able to earn a combined $650 per month, saving around $100-150 per month. With that kind of income, the couple felt confident enough in 2014 to take out a $7,200 loan from the bank in order to build a house.

“At this factory I have to do an over-time job until 8pm. I am working alone, so I have to earn alone as we need more money,” she said. “Sometimes when I arrive home, we get frustrated because I am very tired and he is tired as he has to do all the chores.”

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