Logo of Phnom Penh Post newspaper Phnom Penh Post - Garment workers urged to boost sector’s productivity

Garment workers urged to boost sector’s productivity

Garment workers trace pattern templates at a factory in Phnom Penh south last year.
Garment workers trace pattern templates at a factory in Phnom Penh south last year. Kimberley McCosker

Garment workers urged to boost sector’s productivity

Prime Minister Hun Sen yesterday urged garment workers to improve their productivity in order to prevent factories from closing shop and moving to such countries as Laos, Bangladesh and Myanmar, all of which have lower minimum wages.

His comments came during a graduation ceremony at the National Technical Training Institute, where he also pointed out relatively rapid gains in the minimum wage for Cambodia’s garment workers, which was recently set at $153 a month for the coming year.

“The countries that are absorbing the factories from us are Myanmar, with a minimum wage of $60 to $80; Laos, with [a minimum wage] of $100; and Bangladesh, [with a minimum wage] of $100,” he said. “The factories might pass our country.”

Miguel Chanco, lead ASEAN analyst for the Economist Intelligence Unit, yesterday agreed that countries such as Myanmar and Bangladesh “present a real threat to Cambodia’s garment industry, primarily because of how much more expensive it is to hire workers in Cambodia”.

“The steep increases seen in the minimum wage of Cambodia’s garment industry since 2013 pretty much mean that it now costs twice as much to hire someone in Cambodia – when compared with labour costs in Myanmar and Bangladesh – which is critical given the labour-intensive nature of the industry,” he said via email.

Garment Manufacturers Association in Cambodia deputy secretary-general Kaing Manika said it was impossible to deny the threat posed by Myanmar and Bangladesh.

“Want it or not, [they] have joined the list of Cambodia’s competitors,” he said in an email. “It’s not a threat, but a requirement for Cambodia to perform better.”

But William Conklin, country director for the Solidarity Center, said the situation was more complicated than simply demanding that employees work harder. “For production to increase, it’s the employer that needs to take the first step by providing a decent work environment for workers,” he said.

“There’s a role for all players . . . to really come together and try to help preserve and develop the sector.”

Pav Sina, president of the Collective Union of Movement of Workers, meanwhile, said the wage issue was not to blame for factories shuttering. He points to rather long-standing complaints about bribery, infrastructure woes and non-competitive electricity prices.

“What is important for some investors is the high transportation fees and the electricity prices, which are higher than in other countries,” he said.

MOST VIEWED

  • Tensions high ahead of historic Kun Khmer match up

    The long-awaited November 5 matchup between Kun Khmer legend Prum Samnang and Myanmar-Canadian boxer Dave Leduc has become the most anticipated fight of the year. The Wurkz Sena Kun Khmer promotion, which will be held at the Town Arena at Chip Mong 271 Megamall, will see six

  • Manet: Cambodia safe for travel

    Prime Minister Hun Manet acknowledged that Cambodia and China have cooperated to tackle internet scamming, fraud and other cross border crimes, but insisted that the “Kingdom of Wonders” is completely peaceful and safe. He welcomed tourists to come and explore its rich heritage. During a

  • UNESCO formally list Battambang gastronomy

    Battambang, renowned for its cultural heritage, has achieved a significant milestone as the first Cambodian municipality to join the UNESCO Creative Cities Network (UCCN). The UCCN unites nearly 300 cities prioritising creativity and cultural industries in local development plans and international cooperation. On World Cities Day,

  • Cambodia pivots to solar, wind energy

    Cambodia is planning a move towards solar and wind energy to meet its rising power demands, according to Minister of Mines and Energy Keo Rottanak. On the sidelines of the Singapore International Energy Week event held recently, Rottanak emphasised the urgency of diversifying Cambodia’s

  • Angkor causeway symbol of Cambodia-Japan ties

    In a historic moment marking another milestone in the 70-year-long diplomatic relations between Cambodia and Japan, King Norodom Sihamoni celebrated the formal inauguration of a causeway located to the west of the world-renowned Angkor Wat. While presiding over the November 4 ceremony, the King emphasised the

  • Manet calls for Cambodia’s railways to get back on track

    Prime Minister Hun Manet has instructed the relevant authorities to expedite studies into upgrades to the Phnom Penh to Preah Sihanouk railway line. He suggested that the maximum speed on the line should be increased to 80km/h, in order to expedite the transportation of