Fourth quarter Cambodian garment exports plummet 46 percent: official

AFP - 2 hours 14 minutes ago
PHNOM PENH (AFP) - - Cambodian garment exports plummeted 46 percent in
the fourth quarter of last year, industry officials said Thursday,
warning of factory closures and jobs cuts in one of the country's key
sectors.

An economic downturn in the United States, which buys 70 percent of
all Cambodian textiles, and continuing domestic labour disputes
contributed to the plunge, said Van Sou Ieng, chairman of the Garment
Manufacturers' Association of Cambodia (GMAC).

Until last year, the sector had enjoyed annual growth of up to 20
percent, he added.

Export growth for the entire year stood at only 2.4 percent, Van Sou
Ieng told AFP, adding that the outlook for 2008 "surely was not good."

"Definitely some factories will close, some people will lose their
jobs," he said.

Cambodia's garment industry is the impoverished country's largest
source of income, providing 80 percent of its foreign exchange
earnings and employing an estimated 350,000 people.

Despite heavy competition within the region, namely from China and
Vietnam, Cambodia has won over buyers in the US and Europe with its
labour-friendly image.

But the end of US restrictions against Chinese textile exports in 2009
and greater productivity in Vietnam are likely to erode Cambodia's
position, industry officials warn.

Deteriorating labour relations are also weakening the sector, Van Sou
Ieng said.

"The immediate solution is improving industrial relations," he said.

"If we can convince our colleagues from the unions to cooperate and be
more serious and productive, we might be able to maintain some
permanence," he added.

Industry officials said an estimated 1,100 separate unions are
operating in Cambodia's 300 garment factories, with some manufacturers
having to deal with as many as seven workers' groups at one time.

"It is impossible to manage," Van Sou Ieng said, adding that frequent
illegal strikes have cut heavily into productivity and driven away
foreign buyers.

"It is a serious black mark on the industry," he said.

Labour leaders have disputed factory owners' claims, saying they are
greatly exaggerating the number of strikes and that workers are simply
lobbying for fair wages.

Minimum wage for garment workers hovers around 50 dollars per month.
.