Over 130 factories in Cambodia suspend operations

Factories in Cambodia have not received purchase orders from potential buyers for April, May and June. - Reuters

PHNOM PENH (Xinhua): More than 130 garment, footwear and travel goods factories in Cambodia have suspended operations due to a sharp decline in purchase orders caused by the Covid-19 pandemic, a labour ministry's spokesman said here on Monday (April 27).

Labour Ministry secretary of state and spokesman Heng Sour said most of these products are exported to European countries and the United States, but these countries are currently being hit hard by the outbreak, which leads to a sharp decline in demand.

"As of today (April 27), more than 130 factories have requested to suspend operations, affecting nearly 100,000 workers," he said at a press conference.

Sour said factories in the kingdom have not received purchase orders from potential buyers for April, May and June, but some factories are still in operation and keeping their final products in warehouses in hope that the demand will bounce back when the global situation stabilizes.

"We think that our export in the second quarter of this year can drop between 50 and 60 per cent over the same period last year," he said.

According to the spokesman, to help the affected workers, the government decided to pay US$40 a month to each of them in addition to subsidies from factory employers to help them during the production suspension.

The garment, footwear and travel goods industry is the kingdom's biggest export sector, employing about 750,000 people in approximately 1,100 factories and branches, according to the Labour Ministry.

The sector earned gross revenue of US$9.32 billion last year, up 11 per cent compared to the year before.

Cambodia has so far recorded a total of 122 confirmed Covid-19 cases, with 119 patients cured, Health Minister Mam Bunheng said on Monday. - Xinhua

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Cambodia , covid-19 , factories , close , suspend , operations


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