BUILD BRIGHT UNIVERSITY BUILD BRIGHT UNIVERSITY Prepared by Ninth Group Members Prepared by Ninth Group Members Stung Treng Campus, Cambodia MBA Program, Promotion I Lectured by Professor Dr. T.R Dash IMPACTS OF ECONOMIC RECESSION ON CAMBODIA’S GARMENT INDUSTRIES
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Impacts of economic recession on cambodia garment industries
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BUILD BRIGHT UNIVERSITYBUILD BRIGHT UNIVERSITY
Prepared by Ninth Group Members Prepared by Ninth Group Members
Stung Treng Campus, CambodiaMBA Program, Promotion I
Lectured by Professor Dr. T.R Dash
IMPACTS OF ECONOMIC RECESSION ON CAMBODIA’S
GARMENT INDUSTRIES
IMPACTS OF ECONOMIC RECESSION ON CAMBODIA’S
GARMENT INDUSTRIES
Group MembersGroup Members
1. Mr. Por Narith, Team Leader
2. Mr. Dara Angkeapheakdei, Member
3. Mr. Mov Poly, Member
ContentsContents
1. Introduction2. Research Methodology 3. Research Finding -Global Economy-Cambodia Economy-Cambodia garment industries-Impact of economic recession on Cambodia garment industries4. Conclusion and Recommendation
1. Introduction
1.1 Problem StatementsHow about the global economy- recession?
Global recession of 2007-2009
How about the Cambodia global economic recession?
In 2007, Cambodia's GDP grew by 18.6%.
2008 economic crisis, it 23% drop in exports to the United States of America and Europe
60,000 workers were laid offLast quarter of 2009 and early 2010,
1.2 Research questions•What is the global economic trend?•What is the Cambodia economic trend?•What is the situation of garment factory in Cambodia?•What is the impact of the economic recession on Cambodia’s garment industries?
1.3 Research Objectives •To find out the Global and Cambodia’s economic trend and its economic recession;•To assess the impact of the economic recession on garment industries in Cambodia;•To provide recommendation
1.4 Significance of the research•Students to understand the context of economic in Cambodia and effect on the Cambodia’s garment industries
•Data collection•Data Analysis • Report Writing
2. Research Methodology
3. Finding
What is Recession, Economic, Garment Industry?- Recession-falling GDP- Economy- the production, trade, and use of goods and services- Garment Industry -makers and sellers of fashionable clothing apparel industry, fashion business, fashion industry, rag trade industry
Hotel & Restaurant 22.3 13.7 10.2 9.8 1.8 11.2 10.7
Transport & Communication 14.5 2.1 7.2 7.1 3.9 8.0 6.8
Real Estate & Business 7.8 10.9 10.7 5.0 -2.5 -15.8 5.1
Other Services 18.3 17.2 12.1 12.0 2.9 4.2 4.6
Taxes on Products 6.1 7.6 45.7 9.1 6.1 0.1 4.1
GDP 13.3 10.8 10.2 6.7 0.1 6.0 6.0
Breakdown of industry in GDP
Gross Domestic Expenditures
GNI per capita 2009
Consumer Price Index
CPI Year on Year Change
Cambodia Garment Industries
Nationality of Ownership Ownership by percentage Number of factories owned
Taiwan 28% 66
China 19% 44
Hong Kong 17% 39
South Korea 13% 31
Malaysia 6% 14
Cambodia 5% 13
Singapore 4% 10
USA 4% 9
Others 4% 10
US Garment Imports by Country Dec 2009-Dec 2010
Cambodia’s Garment Exports, 2001-2010
Number of Factories, 2000-2010
Impact of Economic Recession on Garment
Industry
High Vulnerabilities in Slumping US Retail Sales
Reduction in Factory Numbers
Reduction in Numbers of Workforces
Reduction in Total Wages
Source : MoC, 2009
Decline in Daily Earning
Reduction in Workers’ Remittance
Conclusion and Recommendation
Conclusion•including high vulnerabilities in slumping US retail sales•Reduction in factory numbers•Reduction in numbers of workforces, reduction in total wages•Declining in daily earning and reduction in workers’ remittance
Recommendations•Diversify the current market destinations, i.e. Japan, Russia, Middle-Eastern countries and ASEAN members•Help factory management secure 0.3% of workers’ wage per month of the 0.8% to be submitted for safety net pensions•Create fund for vocational training for laid-off workers
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