Minimum wages in Cambodia’s garment industry, the country’s largest private sector employer, have been raised yet again. But years of rising wages and falling prices paid by international brands are squeezing profit margins of factory owners in Cambodia. Even though Cambodia’s garment workers are receiving annual wage raises, the price international brands pay for readymade garments continues to be low.
US imports of Cambodian garments have been falling over the past few years. But imports by EU countries have risen. Perhaps because unlike the US, the EU grants duty-free access to Cambodian garments. It is important for Cambodia’s factories to compete on more than low labor costs alone. They need to find a way to compete that is also about productivity, skills and values. There are other countries where wages are lower.
Also Cambodia has passed a trade union law in April that doesn’t comply with International Labor Organization conventions. Certain category of workers public servants notably aren’t covered by the law in terms of having rights to form unions. Some of the provisions seem to be overly interfering in the internal operations of the unions. The union law, however, gives employees several added powers, including the right to strike.

- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
China’s inward turn, domestic demand is rewriting the export model
China is undergoing one of its most consequential economic recalibrations in decades, driven by geopolitical instability, rising Western protectionism, and... Read more
Why Shein sees itself as a technology company, not a fashion brand
The modern fashion industry has traditionally been defined by creativity, merchandising expertise and global sourcing networks. Yet few companies have... Read more
India’s textile sector turns crisis into competitive advantage
India’s textile and apparel industry has emerged from one of the most turbulent periods in its recent history, transforming a... Read more
India’s Export Divide: Textile mills advance, apparel makers face global headwin…
India’s textile and apparel (T&A) sector entered FY2027 with a striking internal contradiction. While the country’s overall merchandise exports increased... Read more
China’s inward turn, domestic demand is rewriting the export model
China is undergoing one of its most consequential economic recalibrations in decades, driven by geopolitical instability, rising Western protectionism, and... Read more
Egypt bets on a $2 bn green textile city to become Europe’s next sourcing hub
Egypt is making a decisive play to become one of the world's most important apparel manufacturing destinations after securing a... Read more
EU textile imports hit $295.66 bn as price wars mask manufacturing stress
The European Union’s textile and apparel imports grew to $295.66 billion in 2025, a 9.4 per cent year-on-year increase from... Read more
Landmark India-UK trade pact to supercharge textile export margins
The long-awaited India-UK Comprehensive Economic and Trade Agreement (CETA) is officially scheduled to commence on July 15, 2026. This breakthrough... Read more
Is it the end of aspirational luxury? Asia’s consumers demand more than logos
While the global personal luxury goods market remains broadly stable at around €358 billion, the apparent resilience masks a deeper... Read more
Vietnam wins, India slips as US apparel sourcing undergoes massive reset
A trade realignment is transforming the global apparel market, yet India’s manufacturing has stalled at the starting line. Newly released... Read more











