Apparel factory closures debated
Questions have been raised about the health of Cambodia’s $6 billion garment sector after local media reported that over 140 garment factories shut down operations last year. Ministry of Labour spokesman Heng Sour, the source of the figure cited in local media, stood by the number on January 9, stating that the ministry documented 141 garment factory closures in 2016, nearly double the amount recorded in 2015. However, the figure appeared misrepresented in a local media report, which omitted ministry data that showed 149 garment factories opened during the same period, resulting in a net gain for the sector. While Sour was unable to comment on the size of the factories included in the data set, or the number of workers employed, he insisted that fears garment manufacturers were pulling out of Cambodia en masse were unfounded. “The figure [for factory closures] is not a concern for the garment industry,” he said. “We analysed the data and found a balance between factory closures and openings, with the number of new factories still leading. And there is still a balance of workers in the sector with plenty of job opportunities for those seeking employment.”
