{"id":43803,"date":"2020-04-04T10:06:34","date_gmt":"2020-04-04T04:36:34","guid":{"rendered":"https:\/\/www.denimsandjeans.com\/?p=43803"},"modified":"2020-04-04T10:06:37","modified_gmt":"2020-04-04T04:36:37","slug":"will-cambodia-be-able-to-make-comeback","status":"publish","type":"post","link":"https:\/\/www.denimsandjeans.com\/recovery\/news\/will-cambodia-be-able-to-make-comeback\/43803","title":{"rendered":"Will CAMBODIA Be Able To Make COMEBACK?"},"content":{"rendered":"\n<p><strong>COVID-19<\/strong> has now infected over a million people and killed over 53000 people in the world. The world powers and some of the most advanced regions including the USA and Europe are facing a complete shutdown for over a week now and in the coming weeks also, the situation may  escalate further. <\/p>\n\n\n\n<p>Apart from this, some of the biggest economies of SEA including China and India are also still in great stress due to ongoing panic caused by pandemic, while China seems to come back on track slowly but the rest of the world is still struggling and finding ways to stop the further spread of the virus. The battle is not going to be as easy as it appeared, a lot has been happening and a lot will happen post-pandemic.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/DmeFyXk4h0QGKl0MlWFmTqmgUIdNexYrtRNn5s2ldw2KcFYWXodA9ka-masR5TtSABQhogO7srmUid-Z6eSJh25Xl1G6YBWenl72Fv6Kh3Kk9hx9cIbC9uLBUgpVe6ZAZ1_CRT8K\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p>The crisis in some of the manufacturing countries including Cambodia, Myanmar, and Bangladesh has been worsening by the day due to cancellation of orders. . Since the majority of the stores in all buying countries are closed, no new orders are expected to arrive in the coming weeks as many brands have refused to pay for the already manufactured orders which further worsened the situation.\u00c2\u00a0<br><br>According to Human Rights Watch, <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><br>Over 20,000 workers employed in Garment factories have already fired and 70,000 workers could lose the job by the next week of April. Additionally,200,000 garment workers are also on the verge of losing their jobs.\u00c2\u00a0<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>TIMELINE &#8211; THE RISE AND FALL OF CAMBODIA&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Cambodia has been growing as a garment manufacturing hub since the 1990s when many bilateral trade agreements and duty exemptions added pace to the growth. International retailers like Nike have 12 factories and employ <strong>37,540<\/strong> people in Cambodia. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>VFC sources 11% of its products from Cambodia. Other brands like Levis, PVH, and Adidas had expanded their sourcing base into Cambodia. However, all these companies have constantly raised the issue of labor standards in the country and asked the government to take measures to ensure a healthy life for garment workers.<br><\/li><li>According to the Labor Ministry, The garment and footwear industry employs over 800 thousand people in Cambodia and earns $9.3bn annually. <br><\/li><li>The EU is the country\u00e2\u20ac\u2122s largest trading partner, and over 45% of the country&#8217;s exports in 2018 went to the EU alone. In 2013, the export to the EU was \u00c2\u00a32.1bn which galloped to \u00c2\u00a34.7bn in 2018. <br><\/li><li>The sheer apathy of the Cambodian government made Cambodia pay a heavy price. This year in the month of Feb, the special trade preferences by the EU were partially revoked due to alleged serious and systemic human rights violations.<br><\/li><li>The decision of partial suspension came as a blow for the country\u00e2\u20ac\u2122s growing garment industry. Many retailers are expected to move to Bangladesh and Vietnam to get the duty free access to EU regions now. <br><\/li><li>The partial suspension of the \u00e2\u20ac\u0153Everything But Arms\u00e2\u20ac\u009d (EBA) scheme which grants \u00e2\u20ac\u0153least developed countries\u00e2\u20ac\u009d, such as Ethiopia, Bangladesh and Myanmar, duty- and quota-free access to the European single market.<br><\/li><li>The situation in Cambodia further worsened recently when they found it difficult to source raw materials due to the lockdown in China from where they procure 60% of raw materials and now due to the global lockdown, the country is in a huge crisis.\u00c2\u00a0<\/li><\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>The duration, scale and impact of Cambodia\u00e2\u20ac\u2122s violations of the rights of political participation and to the freedoms of expression and association left the EU with no other choice than to partially withdraw trade preferences,\u00e2\u20ac\u009d said Josep Borrell, high representative for foreign affairs at the European Commission. \u00e2\u20ac\u0153The EU will not stand and watch as democracy is eroded, human rights curtailed, and free debate silenced.<\/em><\/p><\/blockquote>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"407\" src=\"https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/unnamed-18.jpg\" alt=\"\" class=\"wp-image-43805\" srcset=\"https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/unnamed-18.jpg 512w, https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/unnamed-18-300x238.jpg 300w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure><\/div>\n\n\n\n<p>The situation in Cambodia further worsened recently when they found it difficult to source raw materials due to the lockdown in China from where they procure 60% of raw materials and now due to the global lockdown, the country is in a huge crisis.\u00c2\u00a0The orders from global buyers also started cancelling in a big way. <\/p>\n\n\n\n<p>The Garment Manufacturers Association in Cambodia (GMAC) pleaded and requested all global buyers\/retailers not to cancel their purchasing contracts in order to save the livelihoods of millions of garment workers.&nbsp;<br><br>Meanwhile, H&amp;M announced that it will review its sourcing strategy in the country. H&amp;M has been sourcing from Cambodia since 1990 and has been working with over 50 factories in Cambodia.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><em>\u00e2\u20ac\u0153Due to the lack of adequate initiatives in developing the Cambodian textile industry and a partial withdrawal of the EBA privileges, we will now further evaluate how the EU\u00e2\u20ac\u2122s decision will impact our business and production strategy in Cambodia.\u00e2\u20ac\u009d company said in a statement.<\/em>&nbsp;<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">THE COVID 19 IMPACT&nbsp;<\/h2>\n\n\n\n<p>More than 90 garment factories in Cambodia have reportedly suspended their operations due to coronavirus which affected 61,500 workers so far however more than 250 thousand workers are expected to be affected by mid of April.&nbsp;<\/p>\n\n\n\n<p>In a report released by Asian Development Bank, due to pandemic, Cambodia\u00e2\u20ac\u2122s economic growth will witness a fall of 2.3% after twenty years of strong performance. It further added that industry growth is forecast to slow to 6.5 percent, with a deceleration in garment production for exports and slower growth in construction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">THE DENIM INDUSTRY IN BRIEF<\/h2>\n\n\n\n<p>As far as the Jeans is concerned, Jeans export from Cambodia to the EU has been reducing since 2017\u00c2\u00a0 and by the end of 2019, it is expected to witness a total fall of approx 36 %(Final data is yet to come). <\/p>\n\n\n\n<p>Comparing the export figures, this is to be noted that Cambodia&#8217;s denim export saw an upward movement of 1% in the year 2018.&nbsp; In 2016, the export was 38.93 million pcs which dropped down to the level of 33.98 million pcs. The country manufactures more Women Denim and shares approx. 72-73 % of the total export of Jeans. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.denimsandjeans.com\/recovery\/subscriber-reports\/denim-exports-cambodia-eu-falls-jan-august19\/41334\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/Qo2XLlwm3vxjmdEYz_8xsl_PUTUiaJzDH4aEjidU5mb375h-CFChK8htkxy68BHEfp8dvis067xMxqRDIeQonj7V-eD2NLzkqzAXVTtpJ_VqaPS6I8TaUByW2dW_QvyQ6saTDlOo\" alt=\"\"\/><\/a><\/figure>\n\n\n\n<p>You can read the full report at <a href=\"https:\/\/www.denimsandjeans.com\/recovery\/subscriber-reports\/denim-exports-cambodia-eu-falls-jan-august19\/41334\">https:\/\/www.denimsandjeans.com\/recovery\/subscriber-reports\/denim-exports-cambodia-eu-falls-jan-august19\/41334<\/a><\/p>\n\n\n\n<p>We hope in the coming times, Cambodia recovers and bounces back, strong measures are expected to be taken to ensure the prosperity of the Garment Industry. In the fight against COVID 19 all stakeholders including brands, govt, supply chain and others will have to execute strong roles to ensure survival. <br><br>Our prayers are with all and we hope collective efforts will help us to win this battle against COVID-19 pandemic. <br><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/lnkd.in\/efQWidC\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/WhatsApp-Image-2020-04-03-at-1.20.52-PM-1024x1024.jpeg\" alt=\"\" class=\"wp-image-43804\" srcset=\"https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/WhatsApp-Image-2020-04-03-at-1.20.52-PM-1024x1024.jpeg 1024w, https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/WhatsApp-Image-2020-04-03-at-1.20.52-PM-300x300.jpeg 300w, https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/WhatsApp-Image-2020-04-03-at-1.20.52-PM-150x150.jpeg 150w, https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/WhatsApp-Image-2020-04-03-at-1.20.52-PM-768x768.jpeg 768w, https:\/\/www.denimsandjeans.com\/recovery\/wp-content\/uploads\/2020\/04\/WhatsApp-Image-2020-04-03-at-1.20.52-PM.jpeg 1250w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>COVID-19 has now infected over a million people and killed over 53000 people in the world. The world powers and some of the most advanced regions including the USA and Europe are facing a complete shutdown for over a week now and in the coming weeks also, the situation may escalate further. Apart from this, [&hellip;]<\/p>\n","protected":false},"author":59,"featured_media":43806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1318],"tags":[1497],"class_list":["post-43803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-cambodia"],"_links":{"self":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts\/43803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/comments?post=43803"}],"version-history":[{"count":3,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts\/43803\/revisions"}],"predecessor-version":[{"id":43811,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/posts\/43803\/revisions\/43811"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/media\/43806"}],"wp:attachment":[{"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/media?parent=43803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/categories?post=43803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.denimsandjeans.com\/recovery\/wp-json\/wp\/v2\/tags?post=43803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}