A development strategy designed to transform the Cambodian garment trade into a dynamic, diversified, high-value and competitive sector – with a focus on the upskilling of factory workers – will be launched soon, a senior finance ministry official said on February 18.

Ministry of Economy and Finance secretary of state Phan Phalla made the remark at a public forum on macroeconomic management and the 2022 Law on Financial Management on February 18.

Though the garment sector has been an important economic pole for Cambodia, value-added has remained low in the last 20 years because goods produced in the Kingdom have been made with unsophisticated skills, he said.

He added that the sector could produce better goods and fetch higher prices through the upskilling of workers, which he says has been incorporated into this strategy.

At the forum, finance ministry permanent secretary of state Vongsey Vissoth said that the garment sector still has the potential to achieve significant growth for the Cambodian economy, but that to do so requires the proper implementation of this development strategy.

“The government wants to see the garment sector move towards the production of high-value and high-value-added goods,” he said.

He added that the strategy also aims to increase the number of domestic investors, “as currently 95 per cent of investors in Cambodia’s garment sector are foreigners”.

Cambodia’s competitors – including Vietnam, Bangladesh and Myanmar – have “missed their chances”, Vissoth said without elaborating.

Garment Manufacturers Association in Cambodia (GMAC) deputy secretary-general Kaing Monika told The Post that the strategy for the development of the garment sector should be launched soon so that it can serve as a clear roadmap for the sector on how to retain its competitive edge.

For full article, please read here

Author: Hom Phanet

Source: The Phnom Penh Post

Publication date: 21 February 2022