Japanese company Nippon Koei plans to invest in the Cambodian silk industry. This investment will improve the domestic silk market which is currently facing competition from increasing imports.
The Cambodian silk sector currently faces challenges such aslack of raw materials, human resources and financial resources. Secondly, handmade Cambodian silk cannot compete with low cost imported silk products.
The country imports silk and cotton yarn from China, Vietnam and Thailand due to the lack of locally produced raw materials. As the National Silk Strategy Report 2016-2020 reveals, the country’s silk yarn production accounts for only one per cent of total domestic consumption, while its imports accountfor 99 per cent – equivalent to more than 400 tonne per year. This imported silk can be used to make a wide range of products such as ties, clothing, bags, and items for home decor, hotels, shops and others.
