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Related Keywords: called international buyers, Cambodia, garment and footwear sector, garment sector burdened, global value chains, introduce new tech, low productivity, Ministry of Commerce, MoC, outdated technology, participate in investment, representatives from global clothing brands, sinks country into low positions, unions

The Ministry of Commerce (MoC), Cambodia during a meeting on Tuesday with representatives from global clothing brands and unions, said that the garment sector is burdened by low productivity brought about by outdated technology, which sinks the country into low positions within global value chains.

Hence, the government has called on international buyers to participate in the investment, increase investment in the garment and footwear sector and to introduce new technologies to help modernise the industry in order to help boost their exports, according to a senior official.

Related Keywords: 5 percent this year, annual Cambodia Textile Summit, Cambodia, compared with 7 percent last year, cost of doing business, Garment Manufacturers Association Cambodia, increase productivity, loosing competitive advantage, low-cost destination, minimum wage hike, remain competitive in foot loose industry, see a slower percentage of growth

Cambodia likely to see a slower percentage of growth, at around 5 percent this year compared with 7 percent in 2016, Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia said at the annual Cambodia Textile Summit.

According to data from the Customs Department, Cambodia exported $7.3 billion worth of apparel and footwear products in 2016. The sector accounts for more than 70 percent of the country’s total exports with the vast majority of its products destined for the EU, US and Canada.

Related Keywords: Cambodia, International Labour Organization, inward investors, miniumum wages for workers, number of garment factories increased

Cambodia has witnessed 21 percent rise in the number of garment and footwear factories, from 528 in late 2013 to 640 in March 2015, while exports are up by more than 10 percent in the past 16 months according to a recent International Labour Organisation (ILO) report, which claims the rapidly growing state of the industry has confounded those who suggested that increased minimum wages for workers would lead to a decline of the sector and the exit of inward investors.

Related Keywords: Act East policy, Cambodia, facilitate investment, Laos and Vietnam, Look East policy, manufacturing hub, Myanmar, Prime Minister Narendra Modi, project development company, special purpose vehicles, strengthen economic and strategic relations

India’s “Act East” policy is Indian Prime Minister Narendra Modi’s revamp of the decades old “Look East” policy, which aimed to strengthen economic and strategic relations in the region. It looks to counter China’s strategic and aggressive economic investments, much like the US’ “Pivot to Asia” policy.

To put forth this idea to ground reality, the Indian government is setting up a project development company to facilitate investment in Cambodia’s private sector by Indian firms

Related Keywords: Apparel exports, Bangladeshi apparel products, BGMEA, BGMEA president Anwar-ul- Alam Chowdhury, Cambodia, India, Indonesia, merchandise exports from Bangladesh, safety and compliance issues, US Department of Commerce’s Office of Textiles and Apparel (OTEXA), US market, Vietnam

Bangladeshi apparel products are losing orders over safety and compliance issues imposed after Rana Plaza tragedy and Tazreen Fashion fire incident. The declining trend is apprehended to be continued in the months to come unless measures are taken to boost up buyers’ confidence.

Apparel exports are losing edge in the US market to its competitors namely Vietnam, Cambodia, India and Indonesia, as buyers have started cutting back their orders.