PHNOM PENH: Cambodian garment industry is on a steady rise. It is doing well one year after the Multi-Fiber Arrangement (MFA) finished; ILO Better Factories Cambodia released figures on June 6.
The ILO Better Factories Cambodia releases a new fact sheet on the industry post quota performance - Cambodian garment industry: One year later.
The fact sheet shows that the total value of exports of Cambodian garment and textile increased almost 10 percent to $2.175 billion in 2005. Exports to US grew by just over 10 percent in quantity and nearly 20 percent in value.
From the 1st January 2005 to 30th April 2006, nearly 30,000 new jobs were created. The total number of garment workers was 293,600 in April 2006. The number of factories increased approximately 13 percent in 2005 despite some factories closing.
Ms Ros Harvey, Chief Technical Advisor for ILO Better Factories Cambodia said that this data was very encouraging; and they are seeing a steady growth in the sector.
However there are still many challenges ahead for the industry.
The average wage remained fixed at US$72 per moth, yet represented a 6% decrease in real wage when adjusted for inflation.
Prices per piece also fell by 4.47%. The data reflects a worldwide trend. This is putting added pressure in the Cambodian garment industry.
Cambodia needs to build on the successes and further improve labour standards and productivity in the industry.