The Cambodian Finance Minister announced a drop of 18% in textile exports during the first half of 2009.

For the association of Cambodian clothing manufacturers, the crisis is not the only factor in this plunge. Local industries have been hit by customs problems, higher electricity costs than are in place in neighbouring countries and increasingly frequent strikes. The association pointed out that Cambodian products are now more expensive than can be found amongst their principal competitors – Vietnam, China and Bangladesh.

The main clients of the country, the USA, Canada and the European Union have reduced their purchases of Cambodian textiles by 30%, 15% and 5% respectively. According to AFP, almost a hundred factories have closed their doors in the last month in the face of mounting problems. Furthermore, though the trend may reverses itself in the future, the Ministry of Economy and Finance of Cambodia has forecast a decrease of 30% in exports for the year as a whole.

By Jonathan Fulwell (Source: Matthieu Guinebault)