The EU withdraws its preferential policies
The Cambodian garment industry is even worse!
160,000 people are facing unemployment! Asking China for help
According to the latest report from Nikkei Asian Review on March 6 – the Cambodian government stated that by March this year, as many as 200 factories and companies will use raw materials All. What’s more serious is that this may cause 160,000 workers to face the possibility of unemployment. The current total number of employees in the country’s textile industry is about 1 million, which shows how much impact and losses this supply shortage has brought to the country’s textile industry.
To make matters worse, last month, the EU also decided to revoke some of the export preferential policies it had previously granted to Cambodia under the trade plan. This decision will officially take effect in August this year, involving clothing, equipment, sugar and other products, accounting for one-fifth of Cambodia’s total exports.
In other words, the EU has begun to impose restrictions on some Cambodian export products, which will be another heavy blow to the country’s export economy.
In order to alleviate the impact of the textile industry Facing difficulties, Cambodia has also urgently asked the Chinese market for help. It is reported that 60% of Cambodia’s textile fabrics are imported from China. If you want to purchase raw materials from India or other countries, it may be difficult to achieve in a short time. Not long ago, Cambodia has expressed its difficulties to China and hopes that China can transport a batch of raw materials to supply Cambodia. In response, the Chinese Chamber of Commerce promised to give priority to providing raw materials to Cambodia.
In fact, since the outbreak of the epidemic, although Cambodia itself is not rich in medical supplies, the country has not stopped providing aid to China. On the 2nd of this month, the country once again donated 300,000 medical masks and a batch of protective clothing to China, demonstrating the friendly and mutually beneficial relationship between China and Cambodia.
On the contrary, Vietnam, which is also experiencing a supply shortage of textile raw materials, has not only suspended some flights to and from China, but also repeatedly blocked masks exported to China. This may put pressure on normal economic and trade exchanges between China and Vietnam.
An order from the Ministry of Commerce of China
More than 60 containers of fabric emergency support
The reporter learned from the Chinese Embassy in Cambodia that relevant Chinese parties are taking rapid action to help solve the problem of Cambodian textile Due to the shortage of raw materials, large quantities of raw materials began to arrive in Cambodia on March 9.
Affected by the COVID-19 epidemic, Cambodia’s garment processing industry has recently faced difficulties in the shortage of raw materials. Wu Guoquan, Economic and Commercial Counselor of the Chinese Embassy in Cambodia, told reporters on March 8 that sharing weal and woe is the core essence of China and Cambodia building a community with a shared future. China is working hard to overcome difficulties and carry out work. The Chinese Ministry of Commerce and the Chinese Embassy in Cambodia are taking further measures to coordinate Ensure the supply and transportation of textile raw materials to Cambodia.
It is reported that including China Ocean Shipping Group, Orient Overseas Container Shipping Co., Ltd., China Foreign Trade Transportation Corporation, etc. The company will form a joint support force to ensure the transportation of textile raw materials, and relevant liners will arrive at relevant ports one after another. Among them, the liner carrying more than 60 containers of textile raw materials was the first to arrive and dock at Sihanoukville Port on March 9.
Wu Guoquan expressed his belief that with the joint support of the Chinese and Cambodian governments and the efforts of relevant enterprises, China’s textile raw materials will Delivering it to Cambodian factories as soon as possible will help the Cambodian garment and footwear industry tide over the difficulties as soon as possible.
The Textile Enterprises Association of the Chinese Chamber of Commerce in Cambodia said that the textile and garment processing industry is one of Cambodia’s main economic pillar industries and provides a large number of jobs. , more than 60% of the fabric accessories in this industry are imported from China.
Shortage of textile raw materials
Cambodia 33 Garment factories have applied to suspend operations
As of March 3, a total of 33 factories in Cambodia have applied to the Ministry of Labor to suspend operations due to shortages of raw materials, affecting nearly 20,000 workers. If the epidemic in China is not resolved, 200 factories may apply to suspend operations!
Hing Sok, spokesperson of the Ministry of Labor and Vocational Training, said that there are 62,000 workers in these 33 factories. During the period of application for suspension, 17,096 workers were asked to suspend work for two weeks.
He said that these companies or factories only applied to temporarily suspend some production lines. For example, a factory has 6 production lines, but they only applied to suspend one.
“The factory expects raw materials to arrive at the end of March.” He emphasized that the Ministry of Labor originally thought that all production lines would be suspended, but later after factory evaluation, it was found that only a quarter of the production lines would be stopped, and that The time is only half a month.
The spokesperson emphasized that in order to get raw materials to Cambodia as soon as possible, the government is working hard to coordinate with China, and the work seems to be very effective so far. He said that as of March 2, the number of factories that have applied to suspend production has not yet caused concern, and the duration of the shutdown is also unclear.��Like the previously estimated 2 months.
Jun Muangthong, chairman of the Khmer Trade Unions Association, said that a factory in Prague Province applied for a partial production line shutdown because raw materials were delayed, affecting about 1,000 to 1,500 workers in the factory (equivalent to 50%).
He said that currently about 80% of factories in China have begun to resume work, and about 80% to 90% of raw materials can be shipped to Cambodia by the end of this month. Ai Tun, chairman of the Cambodia Democratic Garment Workers Union (C.CAWDU), said that among the 100 companies, at least 7 to 8 companies have applied to temporarily suspend production.
If the new coronavirus epidemic in China is not resolved for a long time, 200 factories may apply to suspend operations!
It’s impossible without China
Relocation Factories in Southeast Asia cannot start operations smoothly!
China’s advantage is that we are the only country in the world with a full industrial chain, with 39 major industrial categories, 191 medium categories and 525 small categories. It is the only country that has all industrial categories in the United Nations Industrial Classification, thus forming an industrial system with complete industries.
Quality and competitiveness aside, we can independently produce all industrial products from clothing, footwear and aerospace, from raw materials and minerals to industrial machines, which can meet people’s livelihood, The needs of all fields such as military, infrastructure and scientific research.
Only China in the world can resist such large-scale economic losses as this epidemic. Other countries are simply unable to resist and can only resign themselves to fate. In other words, as long as China does not fall, people around the world will be saved.
It is reported that many factories that have moved to Vietnam, Cambodia and other places have been unable to start operations smoothly recently. Last year, due to the intense trade war between China and the United States, a textile factory moved its production capacity from China to Vietnam in order to diversify risks. The factory has just been completed, foreign orders have been placed, and the mainland management cadres have also applied for visas. They are just waiting for the start of work in the New Year. It can be started, but now management cadres from mainland China are not available, making it impossible for the production line to operate smoothly. “Now we hope that customers can understand us. No one wants to encounter this situation.” The boss said helplessly.
In addition, the epidemic has also brought about logistics impact. Although the textile and clothing industry chain in Southeast Asia is gradually improving, many raw materials are imported from China. The connection is very close. “Most of our factories only have about one month’s supply of fabrics and accessories. If the epidemic continues to be serious and China’s export of fabrics and accessories is interrupted, we may have to suspend production!” said a garment manufacturer.
From this point of view, if the epidemic in China continues to spread, even if customers transfer orders to Vietnam, Cambodia and other places, they will not be able to successfully complete the orders no matter how full they are.
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