Cambodia’s clothing sector prepares for mass order cancellations


Up to 60% of Cambodia’s clothing manufacturing facilities could be forced to suspend operations by the end of April – affecting an estimated 300,000 workers – if buyers do not honour their contractual obligations, according to Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia (GMAC).

In February, the Ministry of Labour and Vocational Training projected that 10% of the country’s apparel manufacturers could be forced to temporarily close owing to material shortages, but as the pandemic worsens and brands retract on typically routine trade agreements, this could soon increase to at least 50%.

In mid-April, the Ministry of Commerce appealed to garment buyers to honour all pending purchase agreements.

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