The Ministry of Economy and Finance announced that it as set to launch a 2022-2027 development strategy for garments, footwear and travel goods on March 21 to strengthen and support the sector in “the new context”.
According to a notice issued by the ministry on March 17, the launch will be held online and attended by minister Aun Pornmoniroth, and representatives from ministries, institutions, embassies, development partners, civil society, businesses and the private sector.
Pornmoniroth also doubles as a deputy prime minister and the Economic and Financial Policy Committee (EFPC) chairman.
Labelled by the government as a “necessity”, the development strategy would lay out a concerted vision, goals, directions and strategic approaches to guide the sector through the fast changing regional and global scenario, in line with “the Cambodian context” – now at a “two-way situation” confronted by challenges and opportunities, according to the notice.
Development visions for the sector entail a transformation into a more central pillar for economic diversification, and a resilient, highly competitive and environmentally sustainable industry with a focus on higher value-added products.
Speaking at the Public Forum on Macroeconomic Management and Budget Law 2022 on February 22, ministry secretary of state Phan Phalla described the garment sector as “the supporting bar” for Cambodia’s economy, and revealed that his ministry had been preparing the strategy since 2020.
Phalla voiced dissatisfaction with the size of the garment sector over the past 20 years, saying local goods have historically been relatively simple. To counter that, a number of approaches have been incorporated into the strategy to encourage better-quality and more valuable products, he said.
Cambodian Footwear Association president Ly Khun Thai believes that the strategy will draw new investors to the garment industry and motivate existing players, adding that the new Law on Investment and the Kingdom’s free trade agreements (FTA) would drive exports in the sector.
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Author: Hom Phanet
Source: The Phnom Penh Post
Publication date: 18 March 2022