Government says Cambodia’s largest export generated $909m up to the end of May this year while predicting that the industry will see a 5% fall overall for 2009

Garment exports drop 20pc in first 5 months
Wednesday, 15 July 2009 14:01 Chun Sophal
Government says Cambodia’s largest export generated $909m up to the
end of May this year while predicting that the industry will see a 5
percent fall overall for 2009, a projection that other sector analysts
say is overly optimistic

THE government announced garment exports dropped 20 percent in the
first five months to US$909 million compared with the same period last
year.

Hang Chuon Naron, secretary general of the Ministry of Economy and
Finance, said the decrease should not seriously damage the Kingdom's
economy, as the decline will prove temporary and ought to end later
this year.

"We expect garment exports will decline only 5 percent for the year
overall," he said. "We hope garment exports will climb to $2.8 billion
later this year as the United States' economy is showing a higher
demand for garments."

Cambodia exported $3.1 billion worth of garments last year. Most went
to the US and the European Union.

Hang Chuon Naron was talking at a forum on Tuesday on the effects of
the global economic crisis and strategies to overcome the challenges.
The forum was attended by 300 people from government, NGOs and the
private sector.

Chan Sophal, president of the Cambodia Economic Association (CEA),
said it is not clear that local garment manufacturers will benefit
from the expected boost to the US economy since other garment-
exporting nations have moved ahead.

Chan Sophal blamed the closure of garment factories locally on a lack
of competitiveness as well as the economic crisis.
"The US ... can buy from other countries which are more competitive,
such as Bangladesh," he said. "The prediction that Cambodia's garment
exports will decline only 5 percent ... is too optimistic."

Kaing Monika, external affairs manager for the Garment Manufacturers
Association of Cambodia, a trade association, said garment exports
would likely end the year 10 percent down, citing competition from
high-volume producers Vietnam and Bangladesh.

"GMAC would welcome it if exports decreased in line with the
government's prediction, but I don't think that will be easily
achieved," he said. "Today's export markets are still narrow."
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