According to data released by the Cambodian Ministry of Labor, due to reduced export demand, 91 factories have applied to suspend operations as of April 2, 2020, and the livelihoods of approximately 61,500 workers have been affected.
The Garment Manufacturers Association of Cambodia (GMAC) stated that due to the impact of the new crown pneumonia epidemic, the international market is facing challenges. About 70% of Cambodia’s garment exports to the EU and the United States have also been affected. damage.
Most of the Cambodian factories that have applied to suspend operations are due to buyers from the European Union, the United States, Canada and other countries reducing or stopping orders. These countries have closed cities and towns to prevent the epidemic. The quarantine policy has closed many department stores and significantly reduced demand, thus affecting buyer orders. The buyer notifies the factory to suspend the supply of goods, and the products that have been produced will be retained in the factory. Not only Cambodia, but also garment factories in Myanmar, Bangladesh, Vietnam, Indonesia, and Laos are facing the same problem.
According to GMAC statistics, the European Union accounts for about 46% of total exports, the United States accounts for about 28%, and Canada accounts for about 8%. The above three markets combined Already more than 70%. Due to the large scale of Cambodia’s garment exports to the EU, the United States, and Canada, conflicts have also arisen. It is expected that some factories will continue to apply for shutdowns in April.
