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    Kampuchea Apparel Industry Opens Its Doors To Attract Foreign Investors

    2012/9/11 21:28:00 9

    KampucheaLabor ShortageLabor Force

     

    In the past ten years, Cambodia Gross domestic product (GDP) has grown by an average of about 9%, and has the potential to attract potential investors. It may be the most friendly country in the ASEAN region with the most friendly investment environment: no foreign exchange control, no profits to repatriate domestic restrictions, and no discrimination against foreign investors.


    In addition, the corporate income tax rate in Kampuchea is 20%, and the tax exemption period is 9 years. Foreigners can get 99 years of land lease, and foreign enterprises can buy land.


    For Chinese investors, the footwear and clothing industry in Kampuchea continues to be a hot spot for investment. This is the most employed sector in Kampuchea, and is also an important export earning department in the country. Kampuchea has more than 300 garment factories or textile mills. Although the minimum wage of workers has increased from $61 to $66 per month this year, the labor force is still relatively low. Kampuchea's clothing and footwear industry also enjoys a favorable tax exemption policy when exporting to the US and European markets.


    It is reported that many American and European brands have outsourced production to Kampuchea. For these companies, one of the advantages of the move is that the trade unions and labor laws in the country have formally ensured the basic rights of workers, so that these big brands can not worry about the boycott of consumers who are sympathetic to the disadvantaged workers.


    However, there are many challenges in investing in Kampuchea's textile and garment industry, such as what has already emerged. Labor shortage Phenomenon. Earlier this year, the Kampuchea Industry Association said there was a large number of vacancies in the country's garment factories, mainly because more and more young people began to be attracted to work overseas.


    Another potential problem is that with the gradual lifting of economic sanctions in Burma, investors in developed countries began to build businesses there. This is a great competition for Kampuchea.


    For manufacturers, the third challenge is the power supply problem. Kampuchea's electricity price is very high. Electricity is mainly concentrated in the central area of the city. Only 20% of the households in the country are connected to the power grid.


    However, these problems do not seem to be the focus of attention of Japanese investors. Last year, Japanese investors invested about $75 million in Kampuchea, two times what it used to be. According to Japanese media reports, the reason for choosing Kampuchea is Thailand, China and Vietnam. The labor The cost is rising steadily. They not only invest in clothing and textile industry, but also focus on food processing, agriculture, tourism, retailing, transportation services and natural resources development.

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