A new association has launched in Cambodia to try to encourage more Chinese investment into the garment industry and provide assistance to existing manufacturers in the country. The China Textile Association in Cambodia (CTAC) is an association of Chinese textile enterprises, including garment manufacturers, as well as related suppliers such as accessories factories, trim suppliers and sub-contractors. All exporters are also members of the Garment Manufacturers Association in Cambodia (GMAC). CTAC will provide legal advice to investors and those considering investing in Cambodia, as well as liaise with the government, according to the Khmer Times. Its services will particularly target Chinese investors. Speaking at CTAC’s launch on Saturday, Minister of Industry and Handicrafts, Cham Prasidh, said the association will be an important partner to the government in boosting the garment and textile industry. “We hope that the association will help attract investment in garments and related industries. We are ready to help and facilitate your investment in Cambodia,” he told attendees. Cambodia is the world’s eighth-largest exporter of garments and footwear, with annual exports of around US$9.2bn. Around half of these shipments – US$4.7bn – went to the EU in 2018, while one-quarter – US$2.4bn – went to the US. The Cambodian monthly minimum salary has also surged from US$140 in January 2016 to US$182 in January 2019, and is set to rise to $190 from January 2020. According to the resource by just-style strategic sourcing tool, Cambodia’s economy depends heavily on the garment industry, which accounts for more than 78% of the country’s total merchandise exports and 20% of its annual economic growth and is the main non-agrarian employer in the country with nearly 900,000 workers employed in over 1,000 factories. These factories are almost exclusively Chinese-owned, and China’s influence in Cambodia will continue to grow as it finances major infrastructure projects.
