Covid-19 takes its toll as 130 factories in Cambodia suspend operations

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130 factories in Cambodia have suspended operations due to massive decline

PHNOM PENH – Up to 130 factories in Cambodia have suspended operations due to massive decline in sales brought upon by Covid-19 pandemic.

Labour Ministry secretary of state and spokesman Heng Sour said in a press conference most of these garments are being exported to European countries and the United States as its major markets.

“Cambodia has yet to receive any orders from buyers for May and June, as well as for the foreseeable future. We can conclude that export in garment and footwear will be hit hard in the second quarter this year,” Heng Sour said.

The suspension of operations are expected to impact over 100,000 workers.

“Cambodia has yet to receive any orders from buyers for May and June, as well as for the foreseeable future. We can conclude that export in garment and footwear will be hit hard in the second quarter this year,” Heng Sour said.

The export sales are also expected to drop between 50 to 60pct in next quarter.

The Cambodian government has made contigency plans for the affected workers. They have decided to US$40 a month to each of them  to help them during the suspension of operations. The garment, footwear and travel goods industry is the country’s biggest export sector with up to 750,000 in over 1,000 factories.

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