Cambodia's Ministry of Labor has unveiled a new programme to aid workers who have been suspended by factories during the economic downturn. Considering the impact of the global economic crisis caused by the Russia-Ukraine war and the Covid-19 pandemic, which has led to a decline in orders, an increase in the suspension of employment contracts, and other production-related costs that have not yet reduced.

Under the new programme, which will be implemented from April 2023, the government will contribute $40 and the factory will contribute $30 towards cash interventions for suspended workers during the period of contract suspension.

Earlier this year, the Council for the Development of Cambodia (CDC) approved three investment projects for the apparel sector that will create up to 5,000 jobs.

However, Cambodian footwear exports to the EU and US may continue to decline for the first half of 2023, with footwear orders falling by potentially as much as 30 per cent.