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    Kampuchea Garment Industry Outlook Report: The Future Of Garment And Footwear Industry Is Full Of Challenges.

    2016/10/18 21:07:00 29

    Kampuchea Garment Industry Outlook ReportGarment IndustryFootwear Industry

    The world bank has released the Kampuchea clothing industry outlook report, pointing out that the free trade agreement between Vietnam and the EU and the impact of Britain's departure from the EU and the p Pacific Partnership Agreement (TPP) will have a significant impact on Kampuchea's economy, which is highly dependent on exports of garments and shoes.

    With the rising minimum wage of workers, Kampuchea will face three external factors, making the future of the garment and footwear industry challenging.

    With the increasing competitiveness of Burma and Vietnam, Kampuchea will be more difficult to compete. Unless Kampuchea effectively solves these problems, the risk of investment will increase in Kampuchea and the export market will be robbed.

    Once Vietnam and the EU FTA come into force, many Vietnamese clothing products will also be exported to the European Union duty-free, leading to Kampuchea's exports of clothing products valued at US $700 million, which account for 12% of Kampuchea's total exports to the EU.

    After the British referendum decided to "take off Europe", whether Kampuchea's clothing and footwear products could continue to enjoy a tax exemption status as exported to the EU has become unknown. Britain is the third largest export market in Kampuchea, after the United States and Germany. In the year (2015), Kampuchea exported 800 million US dollars to the UK, of which clothing accounted for 600 million US dollars, while the remaining 200 million US dollars were shoes.

    The bank believes that if the United Kingdom cancels the exemption status of Kampuchea products, it is expected that the export of Cambodia to Britain will be reduced by at least 70 million US dollars.

    In addition, the "p Pacific Partnership Agreement" (TPP), which covers 40% of the world's trade volume, will affect the Cambodian clothing and shoes more widely than Europe and Vietnam's FTA and Britain.

    Unlike the European Union FTA, the TPP influence level covers almost all Kampuchea exports. At present, Kampuchea exports $2 billion of clothing and shoes to the United States every year. If Kampuchea is excluded from TPP, the impact will be even more serious, and the competitors who join TPP (especially Vietnam) will benefit from it.

    World Bank said.

    Cambodia

    The government must prepare for the impact of external factors, including reducing the cost of electricity charges (currently the highest level of Cambodian electricity charges in ASEAN), eliminating corruption and informal fees, and improving logistics and cross-border trade facilitation.

    The report pointed out that with the government's approval of the minimum wage of clothing and shoemaking workers to be raised to $153 next year, the cost of labour in Kampuchea has been much higher than that of many competitors, only lower than Vietnam ($156), Philippines ($201), China (201.2 dollars) and Thailand (251.4 US dollars).

    With the increasing competitiveness of Burma and Vietnam, Kampuchea will be more difficult to compete. Unless Kampuchea effectively solves these problems, the risk of investment will increase in Kampuchea and the export market will be robbed.

    The world bank has released the "Kampuchea garment industry outlook report", pointing out that the free trade agreement between Vietnam and the EU and the impact of Britain's departure from the EU and the p Pacific Partnership Agreement (TPP) will have a significant impact on Kampuchea's economy, which is highly dependent on exports of garments and shoes.

    With the EU's "Everything but arms" policy, Kampuchea's products exported to the EU are all exempt from tax exemption. The World Bank estimates that once Vietnam and the EU FTA come into force, many Vietnamese clothing products will also be exported to European Union duty-free, resulting in a total value of $700 million for Kampuchea's exports to Europe.

    Clothing products

    Affected, accounting for 12% of Kampuchea's total exports to the EU.

    After the British referendum decided to "take off Europe", whether Kampuchea's clothing and footwear products could continue to enjoy a tax exemption status as exported to the EU has become unknown. Britain is the third largest export market in Kampuchea, after the United States and Germany. In the year (2015), Kampuchea exported 800 million US dollars to the UK, of which clothing accounted for 600 million US dollars, while the remaining 200 million US dollars were shoes.

    The bank believes that if the United Kingdom cancels the exemption status of Kampuchea products, it is expected that the export of Cambodia to Britain will be reduced by at least 70 million US dollars.

    Also covered

    Global trade volume

    40%, the impact of the "p Pacific Partnership Agreement" (TPP) on Cambodian clothing and shoes will be wider than that of the European Union FTA and the UK.

    Unlike the European Union FTA, the TPP influence level covers almost all Kampuchea exports. At present, Kampuchea exports $2 billion of clothing and shoes to the United States every year. If Kampuchea is excluded from TPP, the impact will be even more serious, and the competitors who join TPP (especially Vietnam) will benefit from it.

    The Bank of Kampuchea said that the government should prepare for the impact of external factors, including reducing the cost of electricity charges (currently the highest level of Cambodian electricity charges in ASEAN), eliminating corruption and informal fees, and improving logistics and cross-border trade facilitation.

    The report pointed out that with the government's approval of the minimum wage of clothing and shoemaking workers to be raised to $153 next year, the cost of labour in Kampuchea has been much higher than that of many competitors, only lower than Vietnam ($156), Philippines ($201), China (201.2 dollars) and Thailand (251.4 US dollars).


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